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09 Jul 2025, 06:09 PM
Adjustment of F&O contracts of MOTHERSON on account of bonus.
As per the circular, effective from July 18, 2025, the MOTHERSON 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 MOTHERSON, the adjustment factor is (1+2)/2 = 1.5, since the bonus issue ratio of 1:2.
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 6150.
For example:
Assume you are holding a position in MOTHERSON JUL FUT and on pre-ex-date (July 17, 2025), futures close at 153, on ex-date the price will be adjusted to 102 (Price on pre-ex-date: 153 / Adjustment Factor: 1.5)
While the lot size will be adjusted to 6150 (Current lot size: 4100 * Adjustment Factor: 1.5).
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 6150.
For example:
Assume you hold a position in MOTHERSON 150 CE, the current lot size is 4100. On ex-date, the 150 CE will be adjusted to 100 (Strike Price 150 / Adjustment Factor 1.5), and the lot size will be adjusted to 6150 (Current Lot Size: 4100 * Adjustment Factor 1.5).
Also, if you are holding equity shares of MOTHERSON on the ex-date (July 18, 2025), you will be eligible to receive the bonus shares. The shares will be credited to your account within 2 days from the record date (July 18, 2025). You can learn more about this here.
If you have any queries, then post them on our TradingQ&A forum here.