In a move signalling a significant stride in its corporate strategy, Axita Cotton Limited, a leading name in the production of cotton bales and cotton seeds, has officially allotted Bonus Equity Shares to its eligible shareholders. The decision, approved by the Company’s Board of Directors in a landmark meeting on August 09, 2024, marks a noteworthy milestone for the organization.
Under the Bonus Issue scheme, shareholders have been granted one Bonus Share for every three shares held, a move that underscores the company’s commitment to rewarding its loyal supporters. The record date for determining shareholder eligibility was set as September 20, 2024. In line with the stipulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the issuance of Bonus Equity Shares in the 1:3 ratio was recommended by the Board and subsequently approved by shareholders via the postal ballot.
Mr. Kushal Patel, the Managing Director of Axita Cotton, expressed his enthusiasm regarding the Bonus Issue, stating, “We take immense pride in rewarding our shareholders for their unwavering support as we push for continued growth and excellence. The bonus shares not only embody our confidence in the future prospects but also reflect our steadfast commitment to sharing our success with those who have stood by us.”
Post the Bonus Issue, the Company’s paid-up Equity Share Capital has surged from ₹26.08 crore to ₹34.77 crore, with the total Equity Shares increasing from 26.08 crore to 34.77 crore. Axita Cotton has designated ₹8.69 crore from its free reserves to facilitate the Bonus Issue.
In addition to this significant development, Axita Cotton is thrilled to announce the successful registration of its maiden carbon credit “Pilot Project” under the voluntary carbon market, marking a momentous stride towards sustainable and regenerative agriculture. This pioneering initiative, integrating various ICS performing practices, is set to yield an estimated 200,000 carbon credits, projected to be valued at approximately ₹4.98 crore in the dynamic voluntary market.
The project will undergo meticulous auditing under ISO 14065 by an esteemed independent third-party Verification and Validation Body, with the carbon credits to be issued in adherence to renowned voluntary carbon market standards.
Looking to the horizon, Axita Cotton aims to introduce an additional Eleven carbon credit projects, with the objective of generating approximately 2.2 million credits over the next seven years. Anticipating a rise in carbon credit prices due to the burgeoning carbon market, these projects are estimated to achieve a market value of approximately ₹55 crore.
Employing the most advanced methodologies, including GIS, Environmental Simulation Modelling, and DMRV systems (Digital Monitoring, Reporting, and Verification), in the development of this carbon credit pilot project, Axita Cotton endeavours to significantly benefit local farmer groups. In alignment with five of the United Nations’ Sustainable Development Goals, this initiative will provide financial incentives to local farmers through the revenue generated from these carbon credits.
In a step towards addressing the urgency of climate action, the Company is also pioneering the adoption of Direct Air Capture (DAC) technology to generate real carbon removals under the Carbon Capture Utilization and Storage (CCUS) scope. This strategic move is aligned with Axita Cotton’s commitment to achieving CO2 neutrality goals in the coming years, further underscoring its dedication to environmental stewardship and corporate social responsibility.