New Delhi, Cotton bales manufacturer Axita Cotton Ltd has submitted an expression of interest (EoI) to acquire Gujarat-based Varidhi Cotspin Pvt Ltd, which is currently going through the Corporate Insolvency Resolution Process (CIRP).
It submitted the EoI on August 21, 2026, for participation in the CIRP of Varidhi Cotspin, the company said in a regulatory filing.
“Axita Cotton is keen to acquire Varidhi Cotspin Private Limited through the Insolvency and Bankruptcy Code (IBC) process, which is expected to complement the Company’s existing operations and support its long-term business expansion strategy by strengthening its presence across the cotton value chain,” the company said.
The Ahmedabad bench of the National Company Law Tribunal (NCLT) had initiated CIRP against Varidhi Cotspin over a plea filed by public sector lender SBI over a default of Rs 43.39 crore earlier this year on June 22.
Varidhi Cotspin is a manufacturer of cotton yarn located in Dholka, Ahmedabad, Gujarat. It has a spinning facility housing 29,184 spindles, featuring a spinning unit capacity of roughly 4,442 metric tonnes per annum (MTPA). The company produces ring-spun 100 per cent cotton, compact, combed and carded yarn catering to the hosiery and weaving industries.
Axita Cotton is a cotton manufacturer and exporter, with the company saying its established presence in the cotton industry provides a strong foundation to explore opportunities in complementary segments of the textile value chain.
Under the Insolvency & Bankruptcy Code framework, once a company is admitted into CIRP, the Resolution Professional (RP) invites EoIs from prospective resolution applicants, typically via public announcement. It issues Form G, which is the official public advertisement and Invitation for EOI.
EoI is a preliminary step, not a binding bid, where the prospective resolution applicant submits an EoI within the stipulated window, expressing their intent to be considered as a resolution applicant.
Then the RP examines EoIs against Section 29A of the IBC, which bars certain categories of persons from submitting resolution plans. Only eligible applicants are shortlisted as Prospective Resolution Applicants (PRAs).
These shortlisted PRAs get access to the Information Memorandum and other relevant data of the corporate debtor to help them prepare a detailed resolution plan.
