The Board of Directors of Trent Limited (TRENT) announced the issue of bonus shares in the ratio of 1:2 (1 equity share for every 2 equity shares held). The ex-date for this bonus issue is June 04, 2026.
As a result of TRENT announcing the issue of bonus shares, the Futures and Options contracts in TRENT will be adjusted according to the framework prescribed by SEBI. The adjustment will be both in Strike Price and Lot Size of Options and Price and Lot Size of the Futures contract. You can check the announcement from the exchange here.
SEBI has prescribed a framework for exchanges to adjust 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, continues to remain the same as far as possible.
Here’s how the adjustment works out:
Calculation of the adjustment factor:
The adjustment factor for a bonus issue of A:B is defined as (A+B)/B. For TRENT, the adjustment factor is (1+2)/2 = 1.5 since the bonus issue ratio is 1:2.
Adjustment for Options Contracts:
Strike Price: The adjusted strike price is calculated 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 for June expiry would be 150.
Example:
Assume you hold a position in TRENT JUN 4150 CE. The current lot size is 100. On ex-date, the 4150 CE will be adjusted to 2766.67 (Strike Price 4150 / Adjustment Factor 1.5), and the lot size will be adjusted to 150 (Current Lot Size: 100 * Adjustment Factor 1.5).
If the option premium is ₹186 on pre-ex-date, the adjusted premium on ex-date would be ₹124 (Option Premium ₹186 / Adjustment Factor 1.5).
Adjustment for Futures Contracts:
Futures base price: The adjusted futures base price is arrived at by dividing the settlement price of the future one day before the ex-date by the adjustment factor.
Futures lot size: The adjusted market lot will be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot for June expiry would be 150.
Example:
Assume you are holding a position in TRENT JUN FUT and on pre-ex-date (June 03, 2026), futures close at 4240, on ex-date, the price will be adjusted to 2826.67 (Price on pre-ex-date: 4240 / Adjustment Factor: 1.5)
While the lot size will be adjusted to 150 (Current lot size: 100 * Adjustment Factor: 1.5).
Holders of F&O contracts are not eligible for corporate action benefits.
If you are holding equity shares of TRENT on the ex-date (June 04, 2026), you will be eligible to receive the bonus shares. The shares will be credited to your account within 2 days from the record date (June 04, 2026).
You can learn more about this here
Please note that as per the exchange circular, the adjusted revised market lot for June expiry will be 150. The adjusted revised market lot for July expiry and subsequent expiries will be 225.