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09 Jan 2024, 12:51 PM
Adjustment of Futures and Options contracts of GRASIM due to Rights issue
As per the circular(web), effective from January 10th, 2024(ex-date), the GRASIM F&O contracts will be revised based on the rights adjustment factor.
Grasim Industries Limited (GRASIM) has decided to issue equity shares on rights basis in the ratio of 06:179, i.e. 6 Equity Shares for every 179 Equity Shares held, at an issue price of Rs. 1812 per equity share. Further, the company has fixed ex-date as January 10th, 2024 for the purpose of determining the shareholders who will be eligible to apply for the Issue.
Symbol: GRASIM
Rights ratio: 06:179
Ex-date: January 10th, 2024
Adjustments for Options Contracts:
Strike Price: The adjusted strike price shall be arrived at by multiplying the old strike price by the adjustment factor.
Market Lot: The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 477.
For example, assume you hold a position in GRASIM 2000 CE, the current lot size is 475. On ex-date, the 2000 CE will be adjusted to 1992 CE(Strike Price: 2000 * Adjustment Factor: 0.996040), and the lot size will be adjusted to 477 (Current Lot Size: 475 / Adjustment Factor: 0.996040).
Adjustments for Futures Contracts:
Futures price: The adjusted Futures base price shall be arrived at by multiplying the old Futures base price by the adjustment factor.
Market Lot: The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 477.
For example, assume you are holding a position in GRASIM Futures, and on pre-ex-date (January 09th, 2024), futures close at 2000, on ex-date the price will be adjusted to 1992 (Price on pre-ex-date: 2000 * Adjustment Factor: 0.996040), while the lot size will be adjusted to 477 (Current lot size: 475 / Adjustment Factor: 0.996040).
The above changes shall be effective from January 10th, 2024