Board approves issuance of bonus equity shares, subject to approval of shareholders
ZFCVINDIA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
ZF Commercial Vehicle Control Systems India (formerly WABCO India) reported strong FY26 results with standalone profit after tax of Rs 506.7 crore, up 10.5% from Rs 458.7 crore in FY25. Revenue from operations grew 6.6% to Rs 4,055 crore. The Board declared a final dividend of Rs 4 per share (80% on Rs 5 face value). The key highlight is approval of a massive 5:1 bonus issue: shareholders will receive 5 bonus shares for every 1 share held, with record date June 24, 2026. The company also increased authorised share capital from Rs 10 crore to Rs 60 crore to accommodate this bonus. Additional approvals include Rs 30 crore investment in wholly-owned subsidiary ZF MIPL via preference shares. AGM is scheduled for July 24, 2026.
The 5:1 bonus is exceptionally large and will significantly increase the number of outstanding shares, diluting per-share metrics but providing immediate value to shareholders. Combined with dividend and strong profitability, the stock could see positive sentiment despite dilution.