Synopsis: Two companies hit their bonus share ex-date tomorrow, making today the last window for investors to secure eligibility for a 10:1 and 5:1 payout.
Investors eyeing corporate action opportunities have two names on the radar this week. Both companies have announced bonus share issues with ex-dates falling on June 24, making today – June 23 – the last chance to buy shares and remain eligible for the bonus entitlement.
Last Chance Today: Two Stocks Going Ex-Bonus Tomorrow
Kotyark Industries and ZF Commercial Vehicle Controls India have both announced bonus share issues, with June 24 set as the ex-date for both. This means investors must hold shares in either company by end of trade today, June 23, to qualify for the bonus. Anyone purchasing on or after June 24 will not be entitled to receive the additional shares.
Kotyark Industries has declared a bonus issue in the ratio of 10:1 – one of the most generous bonus ratios seen in recent times. This means for every one share held, eligible shareholders will receive ten additional shares at no cost. To put it plainly, an investor holding 100 shares today will see their holding grow to 1,100 shares after the bonus is credited. These extra shares are issued from the company’s accumulated reserves, involving no cash payment from shareholders.
The share price adjusts downward on the ex-date to reflect the larger share count, keeping the total holding value broadly the same on day one. However, a 10:1 bonus dramatically lowers the per-share price, making the stock far more accessible to retail investors and likely to improve liquidity and trading activity on the exchanges.
Shares of Kotyark Industries Limited, with a market capitalization of Rs.473 crore, are trading at a price of Rs.459 i.e. 4.01% up from its previous closing price of Rs.441.3. It is trading at a P/E ratio of 25.2.
ZF Commercial Vehicle Controls India has announced a bonus issue in the ratio of 5:1, meaning shareholders will receive five additional shares for every one share held. An investor holding 100 shares will end up with 600 shares post-bonus – again, at no additional cost. Like Kotyark, the bonus shares will be issued from the company’s free reserves. The ex-date adjustment means the share price will fall proportionately on June 24, but the overall value of the holding stays broadly intact.
Shares of ZF Commercial Vehicle Controls India Limited, with a market capitalization of Rs.30,441 crore, are trading at a price of Rs.15,998 i.e. 2.6% up from its previous closing price of Rs.15,992. It is trading at a P/E ratio of 58.2.
Both bonus issues carry the same practical deadline – shares must be in the investor’s demat account before the start of trade on June 24 to qualify. While a bonus issue does not change a company’s underlying fundamentals immediately, it is widely seen as a positive signal from management – reflecting confidence in the business, intent to reward long-term shareholders, and a desire to broaden the retail investor base by making shares more affordable.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
