Axita Cotton, a leading producer of cotton bales and cotton seeds, has announced the issuance of Bonus Shares to its eligible Shareholders. The Company’s Board of Directors, in a meeting approved the Bonus Issue in the ratio of 1:3, meaning one Bonus Share is awarded for every three shares held. The record date for determining Shareholder eligibility will be announced at a later stage.
In its official communication to the Stock Exchanges, Axita Cotton said: “In accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors has recommended the issuance of bonus equity shares in the ratio of 1:3, subject to Shareholder approval.”
Speaking on the announcement, Mr. Kushal Patel, Managing Director, Axita Cotton said, “As we continue to grow and excel, we take pride in rewarding our shareholders as well. The bonus issue announced by us also reflects our confidence in the future growth potential. We are sharing our success with those who have supported us along the way.”
As of the current date, the Company’s paid-up Equity Share Capital stands at ₹26.08 crore which comprises 26.08 crore Equity Shares with a face value of ₹1 each. Following the Bonus issue, this will increase to ₹34.77 crore, with 34.77 crore Equity Shares. The Company has allocated ₹8.69 crore from its free reserves to fund the Bonus issue which is expected to be completed within two months of the Board’s approval.
Reaching another significant milestone, Axita has announced the successful registration of the company’s ‘first carbon credit pilot project’ under the voluntary carbon market.
This pioneering project, which incorporates various ICS performing practices in sustainable and regenerative agriculture, shall led to the generation of an estimated 200000 carbon credits, expected to be valued at around ₹ 4.98 crore in the voluntary market. The project will undergo rigorous auditing under ISO 14065 by independent third party Verification and Validation Body, with the carbon credits to be issued by renowned voluntary carbon market standard.
Looking ahead, Axita Cotton plans to launch “Eleven additional carbon credit projects”, aiming to generate approximately 2.2 million credits over the next seven years. These projects are expected to achieve a market value of approximately ₹ 55 crore, supported by the anticipated rise in carbon credit prices, due to the current exponential growth in the carbon market.
Axita Cotton plans to employ the most advanced methodologies in developing this carbon credit pilot project, leveraging cutting-edge technologies such as GIS, Environmental Simulation Modeling, and DMRV systems (Digital Monitoring, Reporting, and Verification). This initiative will significantly benefit local farmer groups by aligning Axita Cotton Limited with five of the United Nations’ Sustainable Development Goals and providing financial incentives through the revenue generated from these carbon credits.
The Company is also taking initiative to adopt Direct Air Capture (DAC) technology to generate real carbon removals under the Cabon Capture Utilisation and Storage (CCUS) scope and achieve CO2 neutrality goals in coming years.