Axita Cotton Limited Buyback 2023
company was incorporated as “axita cotton private limited” at ahmedabad on july 16, 2013. consequent upon the conversion of our company from private limited company to public limited company, the name of the company was changed to “axita cotton limited” and fresh certificate of incorporation consequent upon the conversion from private limited company to public limited company dated october 15, 2018 was issued by the registrar of companies, roc – ahmedabad.
company is producing cotton bales and cotton seeds. it is producing mainly two varieties of cotton bales namely shankar-6 and mcu-5/mech. the production facility of the company is situated at kadi in mahesana district of gujarat state which is close to the rich cotton growing areas of saurashtra and other regions of gujarat. products are sold majorily in the state of gujarat, rajasthan, maharashtra and madhya pradesh. company are also engaged in the business of trading of kapas, cotton bales and cotton seeds. we are also doing ginning and pressing of kapas on job work basis.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Jun 02 2023 |
| Buyback Opening Date: | Jun 08 2023 |
| Buyback Closing Date: | Jun 14 2023 |
| Buyback Offer Amount: | ₹ 5,04,00,000 |
| Date of Board Meeting approving the proposal: | May 23 2023 |
| Date of Public Announcement: | May 23 2023 |
| Buyback Offer Size: | 0.46% |
| Buyback Number of Shares: | 9,00,000 |
| Price Type: | Tender Offer |
| FV: | 1 |
| Buyback Price: | ₹ 56 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Particulars (inCr) | Mar-18 | Mar-19 | Mar-20 | Mar-21 | Mar-22 | Mar-23 |
| Sales | 123 | 213 | 484 | 619 | 823 | 553 |
| Expenses | 120 | 210 | 481 | 610 | 808 | 533 |
| Operating | 3 | 3 | 4 | 9 | 15 | 19 |
| OPM % | 2% | 1% | 1% | 1% | 2% | 3% |
| Other Income | 1 | 0 | 0 | 0 | 7 | 5 |
| Interest | 2 | 2 | 3 | 3 | 2 | 0 |
| Depreciation | 0 | 1 | 1 | 0 | 0 | 1 |
| Profit before tax | 1 | 1 | 1 | 5 | 19 | 23 |
| Tax % | -4% | 32% | 35% | 31% | 25% | 26% |
| Net Profit | 1 | 0 | 0 | 4 | 15 | 17 |
| EPS in Rs | 0.15 | 0.02 | 0.02 | 0.19 | 0.74 | 0.87 |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 96,417 | 96,417 | 96,417 | 96,417 |
| No. of Shares Buyback | 1,178 | 1,786 | 2,678 | 3,571 |
| Buyback Profit | 34,162 | 51,794 | 77,662 | 1,03,559 |
| Profit% | 35.43% | 53.72% | 80.54% | 107.40% |
Recommendation:
25 Comments
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can anybody tell what is entitlement ratio?? In mail entitlement ratio is not mentioned
1 out of 191
Amazonian joke. Don’t know whether to laugh or simply cry with those who put money in this. Unbelievable
Acceptance ratio is 10 percent. Its ok
This penny hit it’s upper circuit today. It is likely to hit it’s lower in the near future 😜. Please be aware ☺️🙏
Acceptance ratio for retailers will be too low. And for big investors ( above 2 lakh rupees)it will be lower.
It’s a huge risk to buy the script just for sake of buyback. As price may fall drastically afterwards.
And again as acceptance ratio is going to be low as size of buyback is too low, investors may end up with losses for the shares left after buyback with them, and net loss can be incurred with this.
Ha, ha! Isn’t there a cost in buying and tendering for buy back, which I presume to be around ₹ 50 or there around 😀. Hope you will consider this while claiming the gain of & 20/
Bought 500 shares at 27.75 for buyback.
1 Share strategy will definitely work here. Buy one share for Rs 20 profit.
Ha, ha! Isn’t there a cost in buying and tendering for buy back, which I presume to be around ₹ 50 or there around 😀. Hope you will consider this while claiming the gain of & 20/
Curious to know whether atleast one share strategy worked.
Feeling sorry for you mate 😔
Buyback is Through Tender Route
Buyback Price Rs. 56 per Share
Buyback Size is 9,00,000 shares
Record Date is 10 May 2023
Record Date 02/6/2023. Sorry for wrong information as 10 May 2023
Views on this buyback are highly solicited from the readers.
Clear avoid. This is a trap buyback. This buyback is only for distribution. Stuck traders will exit and gullible investors buying for buyback would be trapped.
Here you have made a sensible comment. Appreciate it 👍
WELL SAID
Thank you SRK Ji for the informations. Very small sized buyback of less than.5 percent.. Imagine what would be the A R ! Better to avoid in my humble opinion.
Stock has fallen from 81 to 25. Something bad might be coming in results. They have only 8.88 Cr of cash on books as on 31.03.2023. So, be careful in this.
Be very very very very cautious for this operator driven stock/
Sumit Ji, thanks for this warning, very much needed for people like me
Will buy @₹ 11/ per share and try my luck. After all what will I loose?
Best of luck Gopi ji, but very difficult at that rate. Minimum price can be Rs 17/-
Thank you Sumit ji.I will take @ 17/as suggested if and only available at that price, which we know is most unlikely.