Ex-bonus stocks: Kotyark, ZF price reset in June 2026

What happened in Wednesday’s trade

Shares of Kotyark Industries Ltd and ZF Commercial Vehicle Control Systems India Ltd showed sharp declines in Wednesday’s session after both counters turned ex-bonus. The fall was tied to the mechanical price adjustment that happens when additional shares are issued through a bonus. Both companies had fixed June 24, 2026 as the record date for their bonus issues. Investors often see a large percentage drop on the screen on the ex-bonus day, but the move reflects the increased share count rather than a sudden loss in underlying value. The market adjusts the price to account for the new shares that eligible shareholders will receive. This is why the percentage cuts looked unusually steep for both stocks.

Record date and who is eligible for bonus shares

Eligibility for the bonus shares is based on shareholding as of the record date. Shareholders whose names appeared in the company records as of June 24, 2026 are eligible to receive the bonus shares. Once the stock turns ex-bonus, buyers on that day typically do not get the benefit of the bonus issue. The reason is settlement timing rather than any discretionary decision by the company. The eligibility is determined by whether the shares are credited to the investor’s demat account by the relevant cut-off. This is a standard corporate action process used across listed equities.

How the T+1 settlement cycle matters

The settlement framework also explains why some investors miss eligibility despite buying close to the record date. Under Sebi’s T+1 settlement cycle, investors needed to purchase the shares at least one trading day before the record date for the shares to be credited to their demat accounts in time. In practical terms, buying on the record date itself does not generally make an investor eligible for that corporate action. This detail becomes especially important in bonus issues, stock splits, and dividends where the ex-date and record date mechanics drive the entitlement. The sharp price changes on the ex-date can therefore coincide with confusion among short-term traders. But the ex-bonus adjustment is a known and expected effect once the stock starts trading without the entitlement.

Why the price drops look extreme on the ex-bonus day

A bonus issue increases the number of shares outstanding by issuing additional shares to existing shareholders without changing the overall business value at that moment. Because the share count rises, the market price per share adjusts downward to keep the overall market value broadly consistent. The adjustment can look like a “crash” when viewed only as a percentage move from the previous close. In the case of a large ratio bonus issue, the percentage adjustment is often very steep. This was visible in both Kotyark Industries and ZF Commercial Vehicle Control on June 24. The declines reflected the ex-bonus price reset following the bonus share issuance.

Kotyark Industries: 10:1 bonus and first-ever issue

Renewable energy company Kotyark Industries turned ex-bonus for a 10:1 bonus issue. Under this structure, shareholders are set to receive 10 bonus shares for every one share held on the record date. The company had earlier announced plans to issue 10.28 crore bonus shares with a face value of Rs 10 each. This is Kotyark Industries’ first bonus issue. Following the ex-bonus adjustment, the stock was trading at Rs 43.40. That level was down 90.46 per cent compared with the previous price, reflecting the bonus adjustment.

ZF Commercial Vehicle Control: 5:1 bonus and price reset

Auto component maker ZF Commercial Vehicle Control turned ex-bonus for its 5:1 bonus issue. The entitlement is five bonus shares for every one share held on the record date. The company announced the bonus issue in May, marking its first such corporate action. After adjusting for the bonus issue, the stock was trading at around Rs 2,800, reflecting a decline of 82.59 per cent compared with its pre-bonus price. During the day, the stock was also reported to have fallen as much as 83.4 per cent from the previous closing price and touched a low of Rs 2,663. The reported move was attributed to the ex-bonus adjustment, with no stated loss in shareholder value due to the price reset.

Dividend and shareholding details investors are tracking

Alongside the bonus action, ZF Commercial Vehicle Control Systems India is also set to pay a dividend of Rs 4 per share for FY2025-26. Shareholder approval is scheduled at the company’s annual general meeting on July 24. After approval, the dividend payment is expected on or before August 22. The dividend record date is July 10, 2026, as stated. The stock is part of the BSE 500 index. As of the end of March 2026, promoters held a 60 per cent stake in the company.

Key facts snapshot

Market impact: what the adjustment means for investors

The main market impact in this episode is optical rather than fundamental: the share prices reset because the number of shares increases after the bonus. This can affect chart levels, stop-loss triggers, and short-term trading decisions, especially when the ratio is large. For long-term shareholders who were eligible on the record date, the economic exposure is spread across more shares after the bonus shares are credited. For buyers on the ex-bonus date, the entitlement typically does not accrue, aligning with the T+1 settlement timing described. In ZF’s case, investors are also watching the July dividend timeline, which has a separate record date on July 10, 2026.

Why this matters beyond the one-day price move

Ex-bonus sessions often test how well investors understand corporate action mechanics. Sharp percentage drops can trigger misinterpretation, but the adjustment is a normal outcome of issuing extra shares. For Kotyark, the event is also notable because it is the company’s first bonus issue and involves a large 10:1 ratio and an announced issuance of 10.28 crore bonus shares. For ZF Commercial Vehicle Control, the bonus action coincides with a separate dividend schedule that runs through July and August 2026. The key takeaway is that the screen price on the ex-date should be read alongside the corporate action ratio and eligibility rules.

Conclusion

Kotyark Industries and ZF Commercial Vehicle Control traded ex-bonus on June 24, 2026, leading to sharp headline declines that reflected price adjustments for their 10:1 and 5:1 bonus issues. Investors will now track the credit of bonus shares as per the corporate action process, and in ZF’s case, the upcoming July 10 dividend record date and July 24 AGM timeline.