Announcements

POWERGRID Limited conducted a meeting with its Board of Directors on 20th July, 2021. As per this meeting it has declared  to the Exchange, the issuance of Bonus Shares in the ratio of 1:3 of ₹10/- each. The record date for the bonus shares is 30th July 2021.

What are bonus shares?
These are free additional shares given by the company to existing shareholders as an alternative to distributing dividends.

How does this corporate action impact Futures & Options Contracts?
Impact on Futures Contract: 

• Futures base price: The adjusted futures base price shall be arrived at by dividing the old futures price by the adjustment factor.
• Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 5333

Impact on Options Contract: 

• Strike Price: The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor. 
• Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 5333

Adjustment factor: For bonus shares this is = (A+B)/B. In the case of POWERGRID, the adjustment factor is (1+3)/3 = 1.3333, since the bonus issue ratio is 1:3

For all positions taken before 29th July 2021, you may see a slight deviation in the carried forward (c/f) average price of POWERGRID due to the corporate action mentioned above.

To know more, read the circular here: https://bit.ly/375pe9c