Accordingly, the shareholders would get one bonus equity share for every three fully paid-up equity share held as on record date.

The record date for reckoning eligible shareholders entitled to receive bonus shares will be communicated later, the company stated.

The bonus equity shares will be issued out of balance of free reserves (retained earnings) as on 31 March 2023. A total sum of Rs 6.522 crore would be utilized from balance of free reserves for implementation of this bonus issue.

The total free reserves with the company at the end of FY23 were Rs 32.71 crore.

The company has convened an extra-ordinary general meeting of the company on Saturday, 16 December 2023, to seek necessary approval of the members, for the aforementioned issuance.

The said bonus shares would be credited/dispatched within 2 months from the date of approval of board of directors, which is 23 November 2023.

Axita Cotton manufactures and exports cotton bales and cotton seeds.

The company’s net profit had surged to Rs 6.51 crore in the quarter ended September 2023 from Rs 2.29 crore during the previous quarter ended September 2022. Sales rose 324.25% to Rs 388.78 crore in Q2 FY24 from Rs 91.64 crore in Q2 FY23.

On the BSE, 12.20 lakh shares were traded in the counter so far compared with average daily volumes of 5.14 lakh shares in the past two weeks.

The scrip has hit a high and a low of Rs 30.20 and Rs 29.90, respectively, so far in today’s trading session.