Axita Cotton Announces 1:10 Bonus Shares with February 13, 2026 Record Date

Axita Cotton Limited plans to reward its shareholders with bonus equity shares, drawing attention from market participants. The move follows a board decision to issue new shares from existing free reserves, while also fixing a record date that will decide which investors qualify for the corporate action.

The company stated the record date for the Axita Cotton bonus issue as Friday, February 13, 2026. Eligible investors on that day will receive additional equity shares without extra payment, subject to shareholder approval, in a fixed ratio against their existing holdings on the BSE-listed counter.

"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.

At a meeting held on Monday, January 5, 2026, the Board of Directors recommended the Axita Cotton bonus issue in the same 1:10 ratio. Under this proposal, one bonus share of face value Re. 1 will be allotted for every ten fully paid shares of Re. 1 held on the record date.

Before the Axita Cotton bonus issue, the paid-up equity share capital stands at Rs 34.77 crore. This capital currently represents 34,77,72,501 equity shares, each with a face value of Re. 1. The company expects the bonus allotment to expand both the paid-up capital and outstanding share count.

After completing the Axita Cotton bonus issue, paid-up equity capital is projected to rise to about Rs 38.25 crore. The enlarged capital will correspond to up to 38,25,49,751 equity shares of face value Re. 1 each, according to figures shared by the textile manufacturer.

Reserves utilisation and timeline for Axita Cotton bonus issue

To finance the Axita Cotton bonus issue, the board plans to capitalise up to Rs 3.47 crore from free reserves. The audited financial statements for the year ended March 31, 2025, show free reserves of Rs 28.02 crore, indicating that only a part of available reserves will be converted into share capital.

The company has also indicated an estimated completion timeline for the Axita Cotton bonus issue. The credit or dispatch of bonus equity shares is expected within two months from the board meeting date, that is on or before March 04, 2026, subject to required approvals and procedural clearances.

Key numerical details of the Axita Cotton bonus issue and capital position are summarised below for clarity.

Particulars	Details
Bonus ratio	1 bonus share for every 10 existing shares
Face value per share	Re. 1
Record date	Friday, February 13, 2026
Pre-bonus paid-up capital	Rs 34.77 crore
Pre-bonus number of shares	34,77,72,501 equity shares
Post-bonus expected paid-up capital	Up to Rs 38.25 crore
Post-bonus expected number of shares	Up to 38,25,49,751 equity shares
Free reserves as on March 31, 2025	Rs 28.02 crore
Free reserves to be capitalised	Up to Rs 3.47 crore
Estimated allotment deadline	On or before March 04, 2026

Alongside the Axita Cotton bonus issue decision, market participants are also tracking the near-term technical outlook for the stock. Short-term price levels and resistance zones are being watched by traders, who are weighing the impact of the proposed corporate action on trading behaviour.

"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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For investors following the textile sector, the Axita Cotton bonus issue signals capital distribution from a position of adequate reserves. The detailed ratio, record date, projected capital changes and stated timelines offer a clear framework for assessing the corporate action, while price outlook views remain those of individual analysts.