HDFC Bank (₹1,964.60) has announced a bonus with a ratio of 1:1. So, the adjustment factor will be 2. 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 August 26 as the record/effective date. On this day, the stock price and all derivatives contracts on HDFC Bank 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 August 25, the day before the record date. So, the open positions shall be carried forward to August 26 at the daily settlement price on August 25 divided by 2, the adjustment factor.
Suppose the nearest expiry futures closes at ₹2,000 on August 25, it will be revised to ₹1,000 (₹2,000 divided by 2). Also, the lot size will be multiplied by 2. It will be revised from current 550 shares to 1,100 shares per contract so that the contract value remains unchanged.
Likewise, in options, all the existing strike prices in the option chain of HDFC Bank will be divided by 2 from August 26. For example, the strike price of 2000 and 1980 will be modified to 1000 and 990 respectively.
That said, the above 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 August 23, 2025
