15 May 2025, 11:45 AM

Adjustment of F&O contracts of COFORGE on account of Split

As per the circular, effective from June 04th, 2025 (ex-date), the COFORGE 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 COFORGE, 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 375.

Example: If you are holding a position in COFORGE MAY FUT and on pre-ex-date (June 03, 2025) futures close at 8400, on ex-date the price will be adjusted to 1680 (Price on pre-ex-date: 8400 / Adjustment Factor: 5). While the lot size will be adjusted to 375 (Current lot size: 75 * 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 375.

Example: If you are holding a position in COFORGE MAY 8500 CE, the current lot size is 75. On ex-date, the 8500 CE will be adjusted to 1700 CE (Strike Price: 8500 / Adjustment Factor: 5), and the lot size will be adjusted to 375 (Current Lot Size: 75 * Adjustment Factor: 5).

Also, if you hold equity shares of COFORGE in your demat account as of June 04th, 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.