FII-Backed Debt-Free Penny Stock Below Rs 40 Declares 1:3 Bonus Shares

In Friday's closing session, Axita Cotton, a small-cap textile firm, had a market capitalization of Rs 622.20 Cr. Following the company's announcement of the record date for bonus shares, the shares closed at Rs 31.80 on Friday, down 4.33% from the previous closing of Rs 33.24. The record date has been decided for the penny stock below Rs 40, which has announced a 1:3 bonus.

Axita Cotton Bonus Shares

"Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Monday, December 25, 2023 as the Record Date to determine eligible shareholders for issuance of Bonus Equity Shares of the Company in the proportion of 1:3 [i.e. 1 (One) new fully paid up equity shares of Rs. 1/- each for every 3 (Three) fully paid up existing equity share of Rs. 1/- each held], subject to the approval of Members in their Extra Ordinary General Meeting scheduled to be held on Saturday, December 16,2023," said Axita Cotton in a stock exchange filing.

Axita Cotton Financials

On a standalone basis, the company reported net sales of Rs 388.78 crore in the September 2023 quarter up 324.23% from Rs. 91.64 crore in the September 2022 quarter. Its net profit stood at Rs. 6.51 crore in Q2FY24 up 183.97% from Rs. 2.29 crore in Q2FY23. EBITDA for the company jumped by 152.89% to Rs. 9.18 crore from Rs. 3.63 crore in the same quarter of the prior fiscal year. As per the data of Trendlyne, Axita Cotton is a debt-free company which has a Price-to-earnings ratio of 27, lower than its sector PE ratio of 72.59 and high ROE of 32.52%.

Axita Cotton Shareholding Pattern

During Q2FY24, the company reported promoters' shareholding of 69.97%, FIIs stake of 5.32%, and public stake of 24.70%. As per the data of Trendlyne, promoters holding was flat at 69.97% in the September 2023 quarter, FII/FPI have increased their stake from 3.43% in the June 2023 quarter to 5.32% in the September 2023 quarter, and Institutional Investors have increased shareholding from 3.43% in Q1FY24 to 5.32% in Q2FY24. During the quarter FIIs who picked up stake in Axita Cotton were, Nav Capital Vcc - Nav Capital Emerging Star Fund held 6,479,970 shares or 3.31% stake and Ag Dynamic Funds Limited held 2,607,783 shares or 1.33% stake in the company.