Singapore-based foreign institutional investor Nav Capital VCC-Nav Capital Emerging Star Fund has made an investment in the small-cap company Axita Cotton. This development has sparked interest in the company's stock, resulting in noticeable rise in the company's shares.
As the market opened, Axita Cotton's stock price increased in response to the news of Nav Capital's purchase, and the shares showed an upside gap. The stock reached the upper circuit of 5% just after the opening bell. The market-cap of Axita Cotton Limited is currently around Rs. 560 crores. On April 6th 2023, company received contract from Badsha Textiles Ltd., Bangladesh, for Indian Raw Cotton aggregating to ₹26.93 crores.
An earlier announcement of a share buyback by Axita Cotton Limited, an Indian manufacturer and exporter of raw cotton, garnered media attention. The recent large-scale transactions by Nav Capital, which involved the acquisition of 1,000,000 shares at an average cost of Rs. 27.18 per share, have increased investor interest in Axita Cotton Limited.
The company's unit is located at Kadi in Mahesana District of Gujarat, where it has 48 Ginning and Pressing Machines with a production capacity of nearly 87,600 MTPA of Seed Cotton. The company has international presence in countries like, Bangladesh, China, Indonesia, Thailand, Vietnam, Europe, Morocco, Singapore.
The company had approved the buyback of 9 lakh fully paid-up equity shares for a total of Rs. 5.04 crore on May 23rd, 2023. Such measures are frequently seen positively by investors because they reflect management's confidence in the company's prospects and commitment.
In conclusion, the purchase of a stake in Axita Cotton Limited by Nav Capital VCC-Nav Capital Emerging Star Fund has caused a spike in the stock price of the firm. The news of the share buyback and the FII investment together served as a stimulus for the stock's upward trend.
