Axita Cotton has fixed September 11, 2026 as the record date to determine shareholder eligibility for its final dividend of ₹0.05 per equity share for FY26. The Company Secretary confirmed the date in a filing dated September 5, 2026, pursuant to SEBI Listing Regulations.

The Board of Directors had previously recommended this payout at a 13th Annual General Meeting scheduled for September 30, 2026. The dividend amount is subject to final approval by shareholders at the meeting. If declared, the payout will be made after September 30, 2026, subject to applicable tax deductions at source.

Governance Changes

The company seeks to fill a casual vacancy in the office of the statutory auditor. M/s. P K N & Co., Chartered Accountants, resigned on August 12, 2026. Shareholders will vote to appoint M/s. DTA & Associates as the new statutory auditors for a five-year term from FY27 to FY31.

The proposed annual remuneration for the new auditors is ₹6 lakh plus taxes and out-of-pocket expenses. The explanatory statement notes there is no upward revision in fees compared to the outgoing auditors.

Director Appointments

Mr. Nitinbhai Govindbhai Patel, Chairman and Managing Director, retires by rotation and seeks re-appointment. He holds over 10 crore equity shares in the company.

Additionally, shareholders will consider a special resolution for the re-appointment of Mr. Vinod Kanubhai Rana as an Independent Director for a second term of five years, effective from February 22, 2027.

Cost Audit Ratification

The meeting will also ratify the remuneration of M/s. Reena Patadiya & Co. as cost auditors for FY27. The approved fee is ₹35,000 plus applicable taxes and reimbursement of actual out-of-pocket expenses.

Axita Cotton Limited submitted an expression of interest on August 21, 2026, to acquire Varidhi Cotspin Private Limited through the Corporate Insolvency Resolution Process (CIRP). The move aims to strengthen the company’s position across the cotton value chain.

Varidhi Cotspin, based in Dholka, Ahmedabad, manufactures cotton yarn. Established in 2017, the facility houses 29,184 spindles with an annual capacity of roughly 4,442 metric tonnes. It produces Ring Spun 100% Cotton, Compact, Combed, and Carded Yarn for hosiery and weaving industries.

Strategic Expansion

Axita Cotton views the potential acquisition as a strategic opportunity to expand operations and explore synergies in cotton and yarn manufacturing. The company stated that integrating Varidhi would complement its existing business as a cotton bales manufacturer and exporter.

The firm emphasized its focus on quality, timely delivery, and sustainability as foundational strengths for exploring complementary segments of the textile value chain.

What the Numbers Show

The acquisition target offers significant vertical integration potential. Axita Cotton currently manufactures cotton bales, while Varidhi processes cotton into yarn. Acquiring a facility with nearly 4,500 metric tonnes of annual spinning capacity allows Axita to move downstream in the production cycle, potentially capturing higher value-added margins from yarn sales rather than raw bale exports.