Container Corporation of India (CONCOR) (₹756.35) has announced a bonus with a ratio of 1:4. So, the adjustment factor will be 1.25. 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 July 4 as the record/effective date. On this day, the stock price and all derivatives contracts on CONCOR 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 July 3, the day before the record date. So, the open positions shall be carried forward to July 4 at the daily settlement price on July 3 divided by 1.25, the adjustment factor.
Suppose the nearest expiry futures closes at ₹750 on July 3, it will be revised to ₹600 (₹750 divided by 1.25). Also, the lot size will be multiplied by 1.25. It will be revised from current 1,000 shares to 1,250 shares per contract so that the contract value remains unchanged.
Likewise, in options, all the existing strike prices in the option chain of CONCOR will be divided by 1.25 from July 4. For example, the strike price of 750 and 800 will be modified to 600 and 640 respectively.
That said, the aforementioned 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 June 28, 2025
