Crime Today News
Info Edge (India) (i.e., Naukri) (₹7,025) has announced a share split with a ratio of 5:1. So, the adjustment factor will be 5. The split will lead to necessary adjustments in the futures and options (F&O) contracts on this stock on the record date.
The company has decided May 7 as the record/effective date. On this day, the stock price and all derivatives contracts on Info Edge (India) will be adjusted appropriately.
With respect to adjustment in futures contracts, the reference rate of the relevant contract on May 6 will be considered. Reference rate will be the mark-to-market settlement price of the relevant futures contract. So, the open positions shall be carried forward to May 7 at the daily settlement price on May 6 divided by 5, the adjustment factor.
Suppose the nearest expiry futures closes at ₹7,000 on May 6, it will be revised to ₹1,400 (₹7,000 divided by 5). Also, the lot size will be increased five times from current 75 shares to 375 shares per contract. Hence, there won’t be any change in the contract value.
Likewise, in options, all the strike prices in the option chain of Info Edge (India) will be divided by 5 from May 7. For example, the strike price of 6,500 and 6,600 will be modified to 1,300 and 1,320 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 April 25, 2025
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