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Axita Cotton to weigh Varidhi Cotspin insolvency bid
The stock rose 5.0% on Friday to ₹7.68 as Axita Cotton filed an Expression of Interest to take part in Varidhi Cotspin Private Limited’s CIRP.
Axita Cotton is set to remain in focus for Monday trading after the company disclosed its participation in the Corporate Insolvency Resolution Process, or CIRP, tied to Varidhi Cotspin Private Limited, according to LiveMint Markets.
In an exchange filing dated 21 August, Axita Cotton said it has submitted an Expression of Interest to take part in Varidhi Cotspin’s CIRP under the Insolvency and Bankruptcy Code process, with the company expressing intent to acquire Varidhi.
LiveMint Markets reports that Varidhi Cotspin is a cotton yarn manufacturer based in Dholka, Ahmedabad, Gujarat, with a manufacturing unit established in 2017 and a spinning facility that houses 29,184 spindles and roughly 4,442 metric tonnes per annum capacity.
The outlet also noted the market reaction, saying the small-cap penny stock closed Friday up 5.0% at ₹7.68, after an intraday high of ₹7.90 and a low of ₹7.30, and described the shares as volatile amid weaker overall market sentiment.