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13 Sep 2023, 10:00 PM
Adjustment of F&O contracts of BERGEPAINT on account of bonus.
As per the circular(web), effective from September 22th, 2023 the BERGEPAINT F&O contracts will be revised based on the bonus adjustment factor.
Calculation of the adjustment factor: Adjustment factor for Bonus issue of A:B is defined as (A+B)/B. In the case of BERGEPAINT, the adjustment factor is (1+5)/5 = 1.2, since the bonus issue ratio is 1:5.
Adjustment for Futures Contracts:
Futures base price: The adjusted futures base price will be arrived at by dividing the settlement price of the future one day before the ex-date by the adjustment factor.
Futures lot size: The adjusted market lot will be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1320.
For example: Assume you are holding a position in BERGEPAINT Futures, and on pre-ex-date (September 21th, 2023), futures close at 700, on ex-date the price will be adjusted to 583.3 (Price on pre-ex-date: 700 / Adjustment Factor: 1.2), while the lot size will be adjusted to 1320 (Current lot size: 1100 * Adjustment Factor: 1.2).
Adjustment for Options Contracts:
Strike Price: The adjusted strike price will be arrived at by dividing the old strike price by the adjustment factor.
Lot Size: The adjusted lot size will be arrived at by multiplying the old market lot by the adjustment factor. The revised lot size would be 1320.
For example: Assume you hold a position in BERGEPAINT 800 CE and the current lot size is 1100. On ex-date, the 800 CE will be adjusted to 666.7 (Strike Price 800 / Adjustment Factor 1.2), and the lot size will be adjusted to 1320 (Current Lot Size: 1100 * Adjustment Factor 1.2).
Also, if you hold equity shares of BERGEPAINT in your demat account as of September 22nd, 2023 (ex-date), you will be entitled to receive the bonus shares, which will be credited to your demat account usually within 15 – 20 days from the record date.