This Multibagger Textile Products Entity Approves 1:10 Stock Split: Check Details

The small cap company Axita Cotton in its board meeting held on August 12 has approved sub-division of equity shares.

Sub-division or split of shares is a corporate action initiated to divide the company's existing shares into multiple shares to boost the liquidity in them. So, the process of dividing the company's outstanding shares into further smaller shares is referred as stock split.

Here are the other relevant details on the company's stock split together with other details:

Axita Cotton stock split: The company has dividend to split its existing equity share of Rs. 10 face value into 10 shares of Rs. 1 each fully paid up i.e. the split has been announced in the ratio of 1:10. So, considering this if investor had 100 shares of this company before the split, the number of shares post the split shall be 1000. The company in the filing with the exchange on the split said, "the board of directors, at their meeting held today i.e. August 12, 2022, have inter-alia approved Sub-Division/Split of existing 1 equity Shares of face value of Rs. 10/- each fully paid up into 10 equity shares of Rs. 1/- each fully paid up, subject to the approval of shareholders of the Company. The Record Date for the purpose of Sub-division/Split of equity shares will be intimated in due course.

The company has announced the split to encourage wider participation of investors and to improve the liquidity of the Equity Shares in the Stock Market.

 

About Axita Cotton:

 Axita Cotton Limited is an India-based company, which is engaged in the activities of manufacturing, processing and finishing of cotton bales. The Company is engaged in the production and export of BCI cotton. The company's peer companies are Vedant Fashions, KPR Mill, Trident and Alok Industries.

 

Company's Q1Fy23 results:

The company's total revenue during the Q1 period of Fy23 logged an increased YoY to Rs. 20,562 lakh as against Rs. 12,874 lakh in the same period last year. In the March ended quarter, the same stood at Rs. 29,159 crore.Also, the net profit logged an YoY surged to Rs. 445.27 lakh from Rs. 211.69 lakh, the same declined when compared to the March's net profit figure of Rs. 631.8 lakhs.

Also, the company's debt to equity is at 0 and FIIs have increased their stake in the company from 6.04% to 10.02% in the June ended quarter.

Stock price trajectory: The company's 52-week low and high price are Rs. 10 and Rs. 304.15. Last the company's scrip closed at Rs. 296.45 per share on the NSE. The company is a multibagger stock with 1-year return at 689%.

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