Announcements

As mentioned in the meeting held on 18th May 2021 with its Board of Directors, Aarti Industries Limited (AARTIIND) has decided to approve the Bonus issue of company shares in the ratio of 1:1, i.e one (1) Equity Share of face value of Rs. 1/- each to one (1) Equity Shares of face value of Rs. 1/- each.

The company has also fixed the Record Date as 23rd June 2021 for the purpose of determining the shareholders who will be eligible to apply for the Issue.

The Ex- date for the bonus issue is 22nd June 2021. 

 Adjustment factor
Adjustment factor for Bonus issue of A: B is defined as (A+B)/B. In the case of AARTIIND, the adjustment factor is (1+1)/1 = 2, since the Bonus issue ratio is 1:1.

Adjustments for Options Contracts:

1. Strike Price: The adjusted strike price can be calculated by multiplying the old strike price by the adjustment factor.

2. Market Lot: The adjusted market lot can be calculated by dividing the old market lot by the adjustment factor. The revised market lot would be 850.

 Adjustments for Futures Contracts:

1. Futures price: The adjusted Futures base price can be calculated by multiplying the old Futures base price by the adjustment factor.

2. Market Lot: The adjusted market lot can be calculated by dividing the old market lot by the adjustment factor. The revised market lot would be 850.

To know more, read the circular here.

Note: You may see a slight deviation in c/f average price of AARTIIND because of changes in lot size and strike price due to the said corporate action.