Axita Cotton announces 1:10 bonus equity issue funded by free reserves ahead of February 2026 record date

Axita Cotton has decided to reward shareholders through a bonus issue instead of a cash payout. Eligible investors will receive bonus equity shares in the ratio of 1:10. The issue will rely on free reserves as of March 31, 2025, and will proceed only after shareholder approval. The plan is expected to increase the company’s paid-up equity base meaningfully.

The company has already fixed a record date to identify which investors qualify for the bonus shares. These holders will get one new share for every ten already held, without paying anything extra. The move is designed to distribute accumulated reserves while keeping cash balances intact, which is often watched closely by market participants.

"It is hereby informed that the Company has set Friday, February 13, 2026, as the Record Date to determine eligible shareholders for issuance and allotment of Bonus Equity Shares of the Company in the proportion of 1:10 i.e.1 (One) Bonus Equity Shares of Re. 1/- (Rupee One only) each, for every 10 (Ten) existing Equity Shares of Re. 1/- (Rupee One only) each, held as on record date, subject to the Shareholder's approval," Axita Cotton confirmed in a regulatory filing.

The final number of bonus shares will depend on the paid-up share capital on the record date. Axita Cotton has stated that the computation will follow the existing capital position as of that day. This approach allows for any changes from corporate actions or conversions before the record date. Investors therefore need to track their holdings as of February 13, 2026.

Before the bonus issue, Axita Cotton’s paid-up equity share capital stood at 34,77,72,501 shares. Each share carried a face value of Rs 1, bringing total paid-up equity capital to Rs 34.77 crore. After the bonus issue, this capital is expected to rise to 38,25,49,751 shares, with a corresponding value of Rs 38.25 crore, while face value remains unchanged.

The key capital figures shared by the company are summarised below for clarity.

Particulars	Number of shares	Face value (Rs)	Total amount (Rs crore)
Paid-up equity before Axita Cotton bonus shares	34,77,72,501	1	34.77
Expected paid-up equity after Axita Cotton bonus shares	38,25,49,751	1	38.25

The company has indicated that the bonus shares will be funded from free reserves and, if required, securities premium. The estimated maximum amount to be capitalised for this purpose is Rs 3.47 crore. However, the actual figure will mirror the final paid-up equity capital position on the record date, which could change slightly from current estimates.

Axita Cotton bonus shares funding and timeline

According to audited financial statements for the year ended March 31, 2025, Axita Cotton holds free reserves of Rs 28.02 crore. Management considers this balance adequate to support the planned capitalisation. The company has also mentioned that the credit or allotment of bonus shares should occur within two months from the Board meeting date, which is on or before March 4, 2026.

"Axita Cotton stock price is bullish on the Daily charts with strong support at 11.35. A Daily close above resistance of 11.98 could lead to a target of 13.42 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

"Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred to as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions."

For investors tracking Axita Cotton, the bonus issue, record date and reserve position offer key context. The move increases the share count without changing aggregate equity value, while analyst views highlight current technical levels. Market participants may therefore assess the bonus structure, capitalisation details and trading outlook together when evaluating the stock.