11 Jun 2025, 12:34 PM

Adjustment of F&O contracts of BAJFINANCE on account of bonus and split

As per the circular, effective from June 16, 2025, the BAJFINANCE F&O contracts will be revised based on the bonus and split adjustment factor.

Calculation of the adjustment factor:

The adjustment factor for the bonus issue of A: B is defined as (A+B)/B. In the case of BAJFINANCE, the adjustment factor is (4+1)/1 = 5, since the bonus issue ratio is 4:1.

The adjustment factor for the stock split of A: B is defined as (A/B). In the case of BAJFINANCE, the adjustment factor is (2/1) = 2, since the split ratio is 2:1.

Therefore, the final adjustment factor for the Split and Bonus in the security in the above ratios will be: 5 × 2 = 10

Adjustment for Futures Contracts:

Futures base price: The adjusted futures base price shall be arrived at by dividing the old futures price by the adjustment factor.

Futures lot size: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1250.

For example:

Assume you are holding a position in BAJFINANCE JUN FUT and on pre-ex-date (June 13, 2025), futures close at 9600, on ex-date the price will be adjusted to 960 (Price on pre-ex-date: 9600 / Adjustment Factor: 10)

While the lot size will be adjusted to 1250 (Current lot size: 125 × Adjustment Factor: 10).

Adjustment for Options Contracts:

Strike Price: The adjusted strike price is arrived at 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 1250.

(Old Lot Size: 125. New Lot Size: 125 × 10 = 1250)

For example:

Assume you hold a position in BAJFINANCE JUN 9600 CE. The current lot size is 125. On ex-date, the 9600 CE will be adjusted to 960 (Strike Price 9600 / Adjustment Factor 10), and the lot size will be adjusted to 1250 (Current Lot Size: 125 × Adjustment Factor: 10).

Also, if you hold equity shares of BAJFINANCE in your demat account as of June 16, 2025, you will be entitled to receive the bonus and split shares, which will be credited to your demat account usually within 2 days from the record date.

If you have any queries, then post them on our TradingQ&A forum here.