5 Free Shares For 1: One Rs 16,100 Auto Stock To Turn Ex-Bonus For 5:1 Ratio; How To Be Eligible?

ZF Commercial Vehicle Control Systems India is engaged in auto components and equipment business. This company is listed as midcap and is currently trading around Rs 16,100 per share. However, on June 24th, ZF Commercial's shares will be adjusted, as they are going to be ex-bonus for the bonus issue in the ratio of 5:1. This means eligible shareholders will get ten free shares against 1 existing equity share. However, both investors and the share price will be impacted; let's find out.

ZF Commercial Vehicle Control Systems Bonus Issue:

ZF Commercial Vehicle Control Systems has declared a bonus issue of 10:1 ratio. This is the company's first ever bonus rewards.

The 5:1 bonus ratio means that ZF will give 5 new equity shares for every 1 existing equity share held by eligible shareholders.

The eligible shareholders will be identified on the record date which is June 24, 2026. This is also the ex-bonus date of the stock.

So to be eligible for this bonus benefit, shareholders should be holding ZF Commercial's shares in their portfolio as of June 24, 2026. Any new purchases after June 24th will not be eligible for bonus shares because the stock will be already adjusted to the ratio.

The effects of bonus issues are:

- Increases the number of outstanding equity shares

- Reduces share price in proportion to the number of bonus shares issued.

- Reduces free reserves and surplus of the company.

- Creates implicit value per equity share.

- Increases liquidity in the equity shares on the stock exchanges.

- Reduces per share ratios such as earnings per share, or book value per share, among others.

Let's say you held 100 shares of ZF Commercial at Rs 2,000 each. Assuming no market reaction on the bonus record date, at a 5:1 bonus issue ratio, you will receive 500 free shares (100 existing shares x 5/1), which will take your total number of shares to 600 shares, but the share price value will be reduced. So theoretically, there is no surge or fall in your portfolio; your wealth remains the same.

ZF Commercial Vehicle Control Systems India Share Price

Ahead of the bonus issue ex-date, ZF Commercial stock price closed at Rs 16,108.95 apiece on BSE, up by 3.34% on June 23rd, with a market cap of Rs 30,554.79 crore.

YTD, ZF Commercial stock has gained by nearly 10%. In a year, the upside has been around 23%. But its all-time gains is nearly 5,299.03% as of June 23, 2026.

About ZF Commercial Vehicle Control Systems India Ltd:

Headquartered in Chennai, Tamil Nadu, ZF Commercial Vehicle Control Systems India Ltd has five manufacturing facilities, an advanced technology development center, a vehicle testing facility, and a nation-wide aftermarket distribution and services network.