Penny stock under Rs 10: Company Share Price Rise 5% After Filing EOI for Varidhi Cotspin CIRP

On Friday, shares of Axita Cotton Ltd jumped 5.07 per cent to Rs 7.67 per share from its previous closing of Rs 7.30 per share. The stock opened at Rs 7.37 and touched an Intraday high of Rs 7.91, representing an 8.36 per cent rise from the previous close. The stock’s 52-week high is Rs 12.20 per share and its 52-week low is Rs 6.57 per share. As of 16:00 IST, the shares closed at Rs 7.67 per share. August 21, 2026 was a Friday.

Axita Cotton Ltd, a cotton bales manufacturer, on August 21, 2026, submitted an Expression of Interest (EOI) to participate in the Corporate Insolvency Resolution Process (CIRP) of Varidhi Cotspin Pvt Ltd under the Insolvency and Bankruptcy Code (IBC).

Varidhi Cotspin Pvt Ltd is a manufacturer of cotton yarn based in Dholka, Ahmedabad, Gujarat. The company has a manufacturing unit established in 2017 and operates a spinning facility with 29,184 spindles. The facility has an approximate spinning capacity of 4,442 metric tonnes per annum (MTPA).

Varidhi produces Ring Spun 100% Cotton, Compact, Combed and Carded Yarn for the hosiery and weaving industries. Axita Cotton said the proposed acquisition through the IBC process is expected to complement its existing operations and support its long-term business expansion strategy by strengthening its presence across the cotton value chain.

Axita Cotton said its established presence in the cotton industry provides a strong foundation to explore opportunities in complementary segments of the textile value chain. The company has focused on quality, timely delivery, customer satisfaction, innovation and sustainability across its cotton manufacturing and export operations.

The proposed participation in Varidhi Cotspin’s CIRP represents a strategic opportunity for Axita Cotton to expand its business operations and explore potential synergies between cotton and yarn manufacturing. However, participation in the CIRP through an EOI does not by itself mean that the acquisition has been completed.

The company has a market cap of Rs 293.55 crore. The stock price has surged over 16.74 per cent from its 52-week low.

The stock has given a return of 16.74 per cent from its 52-week low of Rs 6.57 per share.

Disclaimer: The article is for informational purposes only and not investment advice.

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