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24 Jan 2025, 10:12 AM
Adjustment of F&O contracts of IGL on account of bonus.
As per the circular, effective from January 31, 2025, the IGL F&O contracts will be revised based on the bonus adjustment factor.
Calculation of the adjustment factor: The adjustment factor for a bonus issue of A: B is defined as (A+B)/B. For Indraprastha Gas Limited, the adjustment factor is (1+1)/1 = 2, since the bonus issue ratio of 1:1.
Adjustment for Futures Contracts:
Futures base price: The adjusted futures base price is 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 2750.
For example:
Assume you are holding a position in Indraprastha Gas Limited FEB FUT and on pre-ex-date (Jan 30, 2025) futures close at 400, on ex-date the price will be adjusted to 200 (Price on pre-ex-date: 400 / Adjustment Factor: 2)
While the lot size will be adjusted to 2750 (Current lot size: 1375 * Adjustment Factor: 2).
Adjustment for Options Contracts:
Strike Price: The adjusted strike price is calculated by dividing the old strike price by the adjustment factor.
Lot Size: The adjusted lot size is arrived at by multiplying the old market lot by the adjustment factor. The revised lot size would be 2750.
For example:
Assume you hold a position in Indraprastha Gas Limited 400 CE, the current lot size is 1375. On ex-date, the 400 CE will be adjusted to 200 (Strike Price 400 / Adjustment Factor 2) and the lot size will be adjusted to 2750 (Current Lot Size: 1375 * Adjustment Factor 2).
Also, if you hold equity shares of IGL in your demat account as of January 31, 2025, you will be entitled to receive the bonus shares, which will be credited to your demat account usually within 2 days from the record date.