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:

The proposal to buyback not exceeding  9,00,000 (Nine Lakh Only) equity shares of the Company (representing 0.46% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 56/- (Rupees Fifty-Six Only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 5,04,00,000/- (Rupees Five Crores Four lakhs  Only)

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?

1. Firstly, to be eligible for the buyback the investor should have shares of Faze Three Limited in Demat or physical form as on the record date [02-06-2023]
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [8-06-2023] by selling your shares through your broker on NSE or BSE.
3. Then on [03-07-2023], the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 3571 Shares at CMP of 27 (200000/56)
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%


(To be updated on 23-05-2023)


    can anybody tell what is entitlement ratio?? In mail entitlement ratio is not mentioned

    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/

      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.

    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.

      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.

Leave a Reply