Inox Wind Limited (INOXWIND) has announced a rights issue in the ratio of 5:78, i.e., 5 equity shares for every 78 equity shares held, at an issue price of ₹120 per share. The company has fixed July 29, 2025, as the ex-date to determine the eligible shareholders for the issue.
As a result, the Futures and Options contracts of Inox Wind Limited will be adjusted according to the framework prescribed by SEBI. The adjustment will result in a change in the Strike Price and Lot Size of Options and the Price and Lot Size of the Futures contracts. The changes will come into effect on the ex-date, July 29, 2025. You can check the announcement from the exchange here.
SEBI has prescribed a framework to the exchanges for 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 so that the value of the position of the market participants, on the cum and ex-dates for the corporate action, continues to remain the same as far as possible.
Here’s how the adjustment works:
The adjustment factor for the rights issue of Inox Wind Limited (INOXWIND), with a rights ratio of 5:78 and an issue price of Rs. 120, is calculated as follows:
| Symbol | INOXWIND |
|---|---|
| Company name | Inox Wind Limited |
| Type of corporate action | RIGHTS |
| Face value | Rs 10/- |
| Ratio | 5:78 |
| Ex-date & effective date | July 29, 2025 |
| Adjustment factor | 0.985730 |
| Adjusted revised market lot | 3272 |
| Revised option strike prices | You can refer to pages 2-3 of this circular. |
Adjustment of Futures Contracts:
Futures base price: The adjusted Futures base price shall be arrived at by multiplying the old Futures base price by the adjustment factor.
Futures lot size: The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 3272.
Example: If you are holding a position in INOXWIND AUG FUT and on pre-ex-date (July 28, 2024), futures close at 165, on ex-date the price will be adjusted to 162.64 (Price on pre-ex-date: 165 * Adjustment Factor: 0.985730). While the lot size will be adjusted to 3272 (Current lot size: 3225 / Adjustment Factor: 0.985730).
Adjustment of Options Contracts:
Strike Price: The adjusted strike price shall be arrived at by multiplying the old strike price by the adjustment factor.
Lot Size: The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 3272.
Example: If you are holding a position in INOXWIND 170 CE, the current lot size is 3225. On ex-date, the 170 CE will be adjusted to 167.55 CE (Strike Price: 170 * Adjustment Factor: 0.985730), and the lot size will be adjusted to 3272 (Current Lot Size: 3225 / Adjustment Factor: 0.985730).
While those holding positions in F&O contracts are not eligible for corporate action benefits. If you are holding equity shares of Inox Wind Limited on the record date (July 29, 2025), you will be eligible to receive Rights Entitlements (REs). These REs will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the REs to apply for the rights shares of the company, or you can sell them in the market. Explained here.