Debt-free stock sets record date for stock split, FIIs stake up 3.98% QoQ

Axita Cotton Ltd. is a textiles-related small-cap company with a market worth of Rs. 596.66 crores. The company manufactures cotton bales and cotton seeds and it primarily produces Shankar-6 and MCU-5/MECH kinds of cotton bales. The company's production plant is located in Kadi, in the Mahesana District of Gujarat State. The company also trades kapas, cotton bales, and cotton seeds in addition to selling its products mostly in the states of Gujarat, Rajasthan, Maharashtra, and Madhya Pradesh. Axita Cotton Ltd. is a debt-free company, according to data from Value Research, but what could sound more intriguing to potential buyers is that the company's board of directors has declared a stock split, which is the cherry on top.

The company has said today in a stock exchange filing that “The Members of the Company in their 9th (Ninth) Annual General Meeting approved sub-division of every 1 (One) Equity Share of the nominal/face value of ₹10/- each into 10 (Ten) Equity Share of the nominal/face value of ₹1/- each. Furthermore, in order to determine the names of equity shareholders entitled to Sub-division, the Board of Directors at their meeting held on August 12, 2022, delegated the power of fixing the Record Date to Mr. Nitinbhai Govindbhai Patel, Chairman Cum Managing Director of the Company. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015 the Record date for the purpose of Sub-division of shares, would be Friday, October 21, 2022 as decided by Mr. Nitinbhai Govindbhai Patel, Chairman Cum Managing Director.”

The shares of Axita Cotton Ltd closed today at ₹304.00 apiece on the NSE, up by 1.20% from the previous close of ₹300.40. In trade today the stock recorded a total volume of 46,151 shares compared to the 20-Day average volume of 45,944 shares. In the last 1 year, the stock has gained 63.44% and on a YTD basis, the stock has gained 66.90% so far in 2022. The stock had touched a 52-week-high of ₹347.10 on (30-August-2022) and a 52-week-low of ₹170.05 on (21-June-2022), indicating that at the current market price the stock is trading 12.41% below the high and 78.77% above the low.

For the quarter that ended June 2022, the company recorded a promoter shareholding of 72.37%, FIIs holding of 10.02% (up by 3.98% QoQ), and a public shareholding of 17.60% (down by 3.98% QoQ). The promoter stake at the current level of Axita Cotton is much higher than its peers such as Jindal Worldwide Ltd, Swan Energy Ltd, Garware Technical Fibres Ltd, Raymond, Go Fashion (India) Ltd, and Welspun India Ltd.