The Board of Directors of Bajaj Finance Limited (BAJFINANCE) in its meeting announced a split in the face value of its equity shares from ₹2 per share to ₹1 per share and allotment of bonus shares in the ratio of 4:1 (4 equity shares of the company for every 1 equity share held).
As BAJFINANCE trades in the F&O segment, this will result in adjustments in F&O contracts on the ex-date June 16, 2025.
SEBI has prescribed a framework to the exchanges for the adjustment of corporate actions in derivative contracts at the time of the corporate action. The exchange has published everything regarding the adjustments in the case of corporate actions here. The adjustments are carried out in such a way that the value of the position of the market participants, on the cum and ex-dates for the corporate action, continue to remain the same as far as possible.
Accordingly, the Futures and Options contracts of BAJFINANCE will be revised as per the SEBI-prescribed corporate action adjustment framework. The strike prices and lot sizes of option contracts, and the base prices and market lots of futures contracts, will be adjusted based on the final adjustment factor. You can check the announcement from the exchange here.
Here’s how the adjustment works out:
Calculation of the adjustment factor:
The adjustment factor for the bonus issue of A: B is defined as (A+B)/B. In the case of BAJFINANCE, the adjustment factor is (4+1)/1 = 5, since the bonus issue ratio is 4:1.
The adjustment factor for the stock split of A: B is defined as (A/B). In the case of BAJFINANCE, the adjustment factor is (2/1) = 2, since the split ratio is 2:1.
Therefore, the final adjustment factor for the Split and Bonus in the security in the above ratios will be: 5 × 2 = 10
Adjustment for Options Contracts:
Strike Price: The adjusted strike price is arrived at by dividing the old strike price by the adjustment factor.
Lot Size: The adjusted lot size is arrived at by multiplying the old market lot by the adjustment factor. The revised lot size would be 1250.
(Old Lot Size: 125. New Lot Size: 125 × 10 = 1250)
For example:
Assume you hold a position in BAJFINANCE JUN 9600 CE. The current lot size is 125. On ex-date, the 9600 CE will be adjusted to 960 (Strike Price 9600 / Adjustment Factor 10), and the lot size will be adjusted to 1250 (Current Lot Size: 125 × Adjustment Factor: 10).
Adjustment for Futures Contracts:
Futures base price: The adjusted futures base price shall be arrived at by dividing the old futures price by the adjustment factor.
Futures lot size: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1250.
For example:
Assume you are holding a position in BAJFINANCE JUN FUT and on pre-ex-date (June 13, 2025), futures close at 9600, on ex-date the price will be adjusted to 960 (Price on pre-ex-date: 9600 / Adjustment Factor: 10)
While the lot size will be adjusted to 1250 (Current lot size: 125 × Adjustment Factor: 10).
Holders of F&O contracts are not eligible for corporate action benefits.
If you are holding equity shares of BAJFINANCE on the ex-date (June 16, 2025), you will be eligible to receive both the split and bonus shares. The split shares will be credited to your demat account within 2–3 working days from the record date, while the bonus shares will be credited within 2 trading days. Bonus shares may initially appear under a temporary ISIN and become tradable once a permanent ISIN is assigned, which can take an additional 4–5 working days. You can learn more about this here.