Adjustments in F&O contracts of Power Grid Corporation of India Limited on account of bonus issue

[TheGouda]

Assuming a stock’s closing price a day before the ex-date is Rs 100, it went through 1:3 Bonus (one bonus share for every three equity shares). On the ex-date, the opening price would be approximately Rs 75. Explained here.

Since fractional equity shares aren’t allowed to trade over exchanges, it will be cash settled.

VBL Bonus share Cash equivalent for fractional shares not credited

The amount equivalent to your fractional allotment will be credited to your bank account in due course. The fractional shares are consolidated and alloted to the trustee appointed by the board, who will sell the shares at the prevailing market price. After that, the sale proceeds will be credited to eligible shareholder’s bank account according to their fractional entitlement. You can check this notification from VBL for more details.