Bonus Issue Explained: Own 10 Shares? Axita Cotton Will Give You 1 More; Here’s When

After announcing a bonus issue and setting a record date to determine shareholder eligibility for the issuance of bonus equity shares, Axita Cotton Limited has gained attention. The BSE-listed textile manufacturer's excellent reserve position and sound balance sheet will be reflected in the bonus shares, which will be issued by capitalizing the company's free reserves.

Axita Cotton Bonus Shares Record Date

"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," said Axita Cotton in a regulatory filing.

Axita Cotton Bonus Issue Details

At its meeting on Monday, January 5, 2026, the Board of Directors recommended that bonus equity shares be issued in a ratio of 1:10, or 1 bonus equity share of Re. 1/-each will be allotted to the eligible shareholders for every 10 existing equity shares of Re. 1/-each they held as of the record date, subject to shareholder approval.

Prior to the bonus issue, the paid-up equity share capital stands at Rs 34.77 crore, comprising 34,77,72,501 equity shares of face value Rs 1 each. Post completion of the bonus issue, the company's paid-up share capital is expected to increase to as much as Rs 38.25 crore, translating into up to 38,25,49,751 equity shares of face value Rs 1 each.

Axita Cotton will use free reserves of up to Rs 3.47 crore, which will be capitalized for the issuance of bonus shares, to carry out this bonus issue. Significantly, according to its audited financial results for the year ending March 31, 2025, the firm has free reserves of Rs 28.02 crore, indicating a good reserve position.

Within 2 months from the date of the Board Meeting i.e. on or before March 04, 2026 is the estimated date by which such bonus shares would be credited / dispatched by Axita Cotton.

Axita Cotton Target Price

"Axita Cotton stock price is bearish with strong resistance at 10.84 on the Daily charts. A Daily close below support of 9.7 could lead to a target of 8.2 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

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