Textile Stock To Allot 1:3 Bonus Shares: Record Date On September 20; How Far Is The Target Price Going?

Axita Cotton Limited is a well-known producer and exporter of premium cotton products, having been founded in Ahmedabad, Gujarat, in 2013. In December 2018, Axita Cotton successfully completed its Initial Public Offering (IPO), generating Rs 1,051.20 lakhs. The company's shares were initially listed on BSE Limited's SME platform before stepping up to the Main Board. As a testament to its strong development and market presence, Axita Cotton is now listed on the National Stock Exchange (NSE). Axita Cotton is a worldwide brand that markets to several nations, such as Bangladesh, Vietnam, China, Indonesia, and Thailand.

Axita Cotton Bonus Shares

The Board of Directors "Recommended the issuance of Bonus Equity Shares in the ratio of 1:3 [i.e. 1 (One) Bonus Equity Share of Rs. 1/- each for every 3 (Three) fully paid-up Equity Share held as on record date] subject to the approval of Shareholder's approval," said the company in a stock exchange filing.

Axita Cotton Bonus Shares Record Date

"This has reference to our letter dated August 31, 2024 by which inadvertently intimated the September 16, 2024 as Record Date for the entitlement of Members of the Company for the purpose of Issue & Allotment of Bonus Equity Shares declared on August 09, 2024. Please note the correct record date is Friday, September 20, 2024," Axita Cotton informed stock exchanges.

Axita Cotton Bonus Share History

"During the year under review and after successfully completion of Buyback, the Board of Directors at their meeting held on November 23, 2023, recommended issue of Bonus Equity Shares, in the proportion of 1:3, i.e., 01 (One) new fully paid-up equity share for every 03 (Three) existing fully paid-up equity share held. This bonus issue was approved vide a resolution by the shareholders at their Extra-ordinary General Meeting held on December 16, 2023. Consequently 65220000 bonus shares were issued on fraction share basis, to the members whose names appeared on the register of members as on December 25, 2023 (Ex Date December 22, 2023), being the record date fixed for that purpose," said the company in its annual report.

"However, the Company had allotted 65218008 (Six Crore Fifty Two Lakh Eighteen Thousand Eight) equity shares due to fractional shares allotted on December 28, 2023. Pursuant to the aforesaid issue of Bonus Shares, the Issued, Subscribed and Paid-up Equity Share Capital of your Company was increased to Rs. 26,08,78,008/- (Rupees Twenty Six Crores Eight Lakh Seventy Eight Thousand and Eight Only) divided into 260878008 (Twenty Six Crores Eight Lakh Seventy Eight Thousand and Eight) Equity Shares of Rs. 1/- each," Axita Cotton further added.

Axita Cotton Share Price Target

"Axita Cotton stock price is bearish on the Daily charts with strong resistance at 23.2. A Daily close below support of 21.5 could lead to a target of 18.5 in the near term," said A R Ramachandran, Independent Research Analyst.