Adjustments in Financial Outlook for Patanjali Foods
Patanjali Foods Announces Bonus Issue and Modifies Options Contracts
In a significant development, Patanjali Foods has announced a 2:1 bonus issue, effective from September 11. This means that for every two shares held, shareholders will receive an additional share. The record/effective date for this bonus issue is also September 11.
To align with these adjustments, the company has also made changes to its options contracts. From September 11, all existing strike prices in the option chain of Patanjali Foods will be divided by 3. This means that the strike price of 1820 will be modified to 606.65, and the strike price of 1800 will be modified to 600.
The adjustment in options is intended to maintain the contract value unchanged. The updated strike prices in options will be lower than their original values due to the adjustment by a factor of 3.
The modifications in options are specific to the contracts held by traders. The open positions in futures contracts shall be carried forward to September 11 at the daily settlement price on September 10 divided by 3. The lot size in futures contracts will also be multiplied by 3, from current 300 shares to 900 shares per contract.
It is important to note that these modifications in options are not expected to alter the overall market dynamics of Patanjali Foods stock. The overall trend of the stock is not expected to be significantly impacted by these measures.
Traders are advised to note the changes in the contracts they hold but can continue with their existing views. If the nearest expiry futures closes at ₹1,800 on September 10, it will be revised to ₹600 (₹1,800 divided by 3).
It is worth mentioning that no information is available regarding a stock trading company announcing a 2:1 bonus on September 11, 2025, nor about the impact on futures and options contracts related to this stock trading.
This adjustment aims to keep the contract value unchanged, ensuring a smooth transition for traders and investors. As always, it is recommended to consult with a financial advisor before making any investment decisions.
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