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25 Dec 2024, 09:00 PM
Adjustment of F&O contracts of SHRIRAMFIN on account of Split
As per the circular (1), effective from January 10th, 2025 (ex-date), the SHRIRAMFIN F&O contracts will be revised based on the split adjustment factor.
Calculation of the adjustment factor: The adjustment factor for the stock split of A: B is defined as (A/B). In the case of SHRIRAMFIN, the adjustment factor is (5/1) = 5, since the split ratio is 5:1.
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 750.
Example: If you are holding a position in SHRIRAMFIN JAN FUT and on pre-ex-date (January 25, 2025) futures close at 3000, on ex-date the price will be adjusted to 600 (Price on pre-ex-date: 3000 / Adjustment Factor: 5). While the lot size will be adjusted to 750 (Current lot size: 150 * Adjustment Factor: 5).
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 750.
Example: If you are holding a position in SHRIRAMFIN JAN 3000 CE, the current lot size is 150. On ex-date, the 3000 CE will be adjusted to 600 CE (Strike Price: 3000 / Adjustment Factor: 5), and the lot size will be adjusted to 750 (Current Lot Size: 150 * Adjustment Factor: 5).
Also, if you hold equity shares of SHRIRAMFIN in your demat account as of January 10th, 2025 (ex-date) you will be entitled to receive the split shares, which will be credited to your demat account usually within two working days from the ex-date.