Patanjali Foods (₹1,790*) has announced a bonus with a ratio of 2:1. So, the adjustment factor will be 3. The bonus issue will lead to necessary adjustments in the futures and options (F&O) contracts on this stock on the record date.
The company has decided September 11 as the record/effective date. On this day, the stock price and all derivatives contracts on Patanjali Foods will be adjusted appropriately.
With respect to adjustment in futures contracts, it will be based on the daily settlement price (mark-to-market) of futures contract on September 10, the day before the record date. So, the open positions shall be carried forward to September 11 at the daily settlement price on September 10 divided by 3, the adjustment factor.
Suppose the nearest expiry futures closes at ₹1,800 on September 10, it will be revised to ₹600 (₹1,800 divided by 3). Also, the lot size will be multiplied by 3. It will be revised from current 300 shares to 900 shares per contract so that the contract value remains unchanged.
Likewise, in options, all the existing strike prices in the option chain of Patanjali Foods will be divided by 3 from September 11. For example, the strike price of 1800 and 1820 will be modified to 600 and 606.65 respectively.
That said, the aforesaid measures are not likely to impact the overall trend of this stock. So, traders can stick to their views and are only required to note the changes in the contracts that they hold.
Published on September 6, 2025
