This Textile Company Announced 1:10 Bonus Issue: Record Date:13/2/2026

Axita Cotton Bonus Issue: Axita Cotton Ltd has announced a 1:10 bonus issue, with February 13, 2026 set as the record date. Shareholders will receive one bonus share for every ten shares held, with allotment expected by March 4, 2026. This marks the company’s fifth bonus issue in the past seven years, reflecting its consistent shareholder-friendly approach.

Axita Cotton Bonus Issue: Overview of the Bonus Issue

Axita Cotton Ltd, a Gujarat-based textile company, has declared a bonus issue in the ratio of 1:10. This means that for every ten shares held by an investor, one additional share will be issued free of cost. The record date is February 13, 2026, which determines shareholder eligibility. The company’s board approved this move on January 5, 2026, utilizing ₹3.47 crore from free reserves. Post-issue, the paid-up capital will rise from ₹34.77 crore to ₹38.25 crore.

Significance for Shareholders:

• Rewarding Investors: Bonus shares are a way for companies to reward shareholders without impacting cash flows. Investors gain additional equity, which can enhance liquidity and market participation.

• Track Record: This is the fifth bonus issue by Axita Cotton in seven years, signaling a consistent effort to share growth with investors.

• Ex-Date & Allotment: The ex-date is also February 13, 2026, and bonus shares are expected to be credited by March 4, 2026.

Market Context:

Currently, Axita Cotton’s stock trades at under ₹10 per share, categorizing it as a penny stock. Despite its low price, the company has maintained a pattern of issuing bonuses, which can attract retail investors looking for long-term value.

Implications of the Bonus Issue

• Capital Structure: The increase in paid-up capital strengthens the company’s equity base, potentially improving investor confidence.

• Liquidity Boost: More shares in circulation can lead to higher trading volumes, making the stock more liquid.

• Investor Sentiment: Frequent bonus issues often signal management’s confidence in future earnings, though they do not directly increase company profits.

Conclusion

Axita Cotton Bonus Issue: The upcoming bonus issue of Axita Cotton Ltd is a noteworthy corporate action, especially for retail investors. With a 1:10 ratio, February 13, 2026 record date, and allotment by March 4, 2026, the move underscores the company’s commitment to rewarding shareholders. While the stock remains low-priced, Axita Cotton’s consistent bonus history highlights its strategy of enhancing shareholder value through equity expansion.

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