Penny Stock Declares 1:10 Bonus Shares; Record Date, Ratio & Credit Timeline Revealed

In an effort to reward current shareholders without using cash, Axita Cotton, a small-cap textile firm, has announced bonus shares. In order to determine eligible shareholders for the issue and allocation of bonus equity shares of the firm in a 1:10 ratio, the firm has also announced a record date. The above-said bonus equity shares shall be out of capitalization of free reserves available as of March 31, 2025, subject to the approval of the shareholder's approval.

Axita Cotton Bonus Issue 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," Axita Cotton confirmed in a regulatory filing.

Axita Cotton Bonus Shares Details

The paid-up equity share capital prior to the bonus issue was 34,77,72,501 equity shares with a face value of Rs 1 apiece, totalling Rs 34.77 crore. This shows the current capital structure as of the record date prior to the issue of bonus shares. The paid-up share capital is anticipated to rise significantly following the bonus issue, reaching up to 38,25,49,751 equity shares worth Rs 38.25 crore. The face value of each share would remain at Rs 1.

The company has clarified that the exact number of bonus shares to be issued will be finalized based on the paid-up share capital as of the record date.

The company intends to use free reserves and/or securities premium to fund this bonus issue, with an anticipated need of up to Rs 3.47 crore. The final paid-up capital on the record date will determine the actual amount to be capitalized.

The firm has free reserves of Rs 28.02 crore, which is more than sufficient to cover the bonus issue, according to the audited financial accounts for the year that ended on March 31, 2025. The bonus shares are anticipated to be credited or issued within two months of the Board Meeting date, which is on or before March 4, 2026, according to Axita Cotton.

Axita Cotton Target Price

"Axita Cotton stock price is bullish on the Daily charts with strong support at 11.35. A Daily close above resistance of 11.98 could lead to a target of 13.42 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

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