The board of Piramal Enterprises Ltd has announced a demerger of its pharma business into a separate entity. As per the scheme of demerger, Piramal Enterprises will be issuing 4 equity shares of Piramal Pharma Ltd for every one share held in Piramal Enterprises Ltd.
The company has fixed September 01, 2022 as the record date to determine the shareholders who will be eligible for the corporate action. You can check the announcement here.
As Piramal Enterprises Ltd trades in the F&O segment, the following adjustments shall be carried out on the Futures and Options contracts of PEL:
All existing contracts with expiry dates September 29, 2022, October 27, 2022, and November 24, 2022, will expire on August 29, 2022, and will be physically settled just like it happens on the day of monthly expiry. You can learn more about physical settlement here.
The settlement price for the purpose of the final settlement will be the weighted average price of PEL.
All positions in the existing F&O contracts on the underlying PEL will cease to exist pursuant to the final settlement on August 29, 2022. Futures and Options contracts on PEL will be introduced again with expiry dates September 29, 2022, October 27, 2022, and November 24, 2022, from August 30, 2022 onwards.
You can check the announcement from the exchange here.