Textile stock sets record date for share buyback of ₹5.04 cr, FII stake surges in Q4: Are you in it?

9 lakh fully paid-up Equity Shares of face value of Re 1 each representing 0.46% of the total paid-up Equity Share Capital of the Company are being offered to be bought back by the Company at a price of Rs. 56 per Equity Share, payable in cash for an amount up to 5.04 crores. This is 9.63% of the total fully paid-up equity share capital and free reserves as per the company’s FY23 earnings statement.

In order to determine the eligibility of shareholders for the purpose of share buyback, the Board of Directors of Axiata Cotton said in a stock exchange filing today that “in compliance with Regulation 42(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations , 2015 and Regulation 9(i) of the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, the Company has fixed Friday, the 02nd June, 2023 as the record date. Eligibility and Names of Equity Shareholders Prescribed who will be eligible to participate in the buyback.”

Commenting on whether one should participate in the buyback offer, AR Ramachandran, Co-Founder & Trainer – tips2trades said, “With the stock price falling sharply in the last few days, it is time for investors to participate in the buyback. Will be a good buying opportunity. Given the below average financial performance in FY23, a strong uptrend in long term as proposed by Excitta Cotton looks difficult. The next support will be at 22.55 on the daily charts.”

The company has reported a total income of Rs 128.66 crore during the quarter ended March 31, 2023, as against Rs 291.58 crore during the quarter ended March 31, 2022. During Q4FY23, the net profit of the company was 11.43% down from 5.59 cr 6.31 crore in Q4FY22. Its EPS during the quarter under review reached compared to 0.28 0.32 in the corresponding quarter of FY22, down 12.50% YoY.

Excita Cotton shares closed on BSE today up 3.38% from previous close of 28.44 27.51. The stock touched a 52-week high 83.00 (28/04/2023) and at 52-week low 15.87 on (13/06/2022). During Q4FY23, the company reported promoters’ holding at 69.65%, FIIs’ holding at 12.45% and public at 17.90%. According to Trendline data, FIIs/FPIs increased their holdings from 11.63% in the Dec 2022 quarter to 12.45% in the March 2023 quarter, and institutional investors increased their holdings from 11.63% in Q3FY23 to 12.45% in Q4FY23. The promoters’ stake in Exita Cotton remained unchanged at 69.65% for the March 2023 quarter.