Announcements

Bharti Airtel Limited (BHARTIARTL) conducted a meeting with its Board of Directors on 29th August, 2021. As per this meeting, it has declared to the Exchange that it will announce a rights issue  in the ratio of 1:14, i.e 1 rights equity share for every 14 equity shares held at an issue price of Rs. 535 per equity share. The record date for the purpose of determining the shareholders who will be eligible to apply for the rights shares is 28th September 2021.

What is a rights issue?
A company announces a rights issue to invite existing shareholders to buy more shares, usually at a discounted price. These shares are known as rights equity shares.  To learn more, click here.

How does this corporate action impact Futures & Options Contracts?

Impact on Futures Contract: 

• The adjusted futures base price shall be arrived at by multiplying the old futures base price by the adjustment factor. 
• The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 1886

Impact on Options Contract: 

• The adjusted strike price shall be arrived at by multiplying the old strike price by the adjustment factor.
• The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 1886

The details of the adjustment factor computation and revised option strike prices available for trading BHARTIARTL from 27th September 2021 are given in Annexure-1 of the circular here.

For all positions taken before 27th September 2021, you may see a slight deviation in the carried forward (c/f) average price of BHARTIARTL due to the corporate action mentioned above.