The Board of Directors of UltraTech Cement Limited (ULTRACEMCO) has declared a dividend of ₹240 per equity share, with the ex-dividend date being July 30, 2026.
SEBI has prescribed a framework for exchanges to adjust derivative contracts at the time of corporate actions. The exchange has published detailed guidelines on such adjustments. As per this framework, if a company declares a dividend that is equal to or more than 2% of the market value of the underlying security, it is treated as an extraordinary dividend, and the exchange carries out adjustments in the futures and options contracts of the stock.
Since the dividend declared by ULTRACEMCO is above 2% of the market value of the security, the exchange has issued a circular on the adjustment of F&O contracts in ULTRACEMCO on the ex-date, July 30, 2026.
Adjustment for future contracts:
All positions in futures contracts of ULTRACEMCO will be marked-to-market on the last cum-dividend date, i.e. July 29, 2026, based on the daily settlement price of the respective futures contract. Subsequently, open positions will be carried forward at the daily settlement price less ₹240 (dividend amount) for the respective futures contract.
From July 30, 2026 (ex-dividend date), daily mark-to-market settlement of the futures contracts will continue as per normal procedures.
For example:
Assume you bought 1 lot (50 quantities) of ULTRACEMCO July futures on July 29, 2026, at ₹11,886, and the daily settlement price at market close is ₹12,100, you would have made a mark-to-market profit of ₹214 per share.
On July 30, 2026, the previous day’s position will be carried forward at ₹11,860 (i.e. 12,100 − 240). If the closing price on July 30, 2026, is ₹11,980, you’ll make a mark-to-market profit of ₹120 per share.
Adjustment for options contracts:
The full value of the dividend, i.e. ₹240, will be deducted from all the cum-dividend strike prices on the ex-dividend date. All positions in existing strike prices will continue to exist in the corresponding new adjusted strike prices.
For example:
The strike price of the ₹11,900 Call Option will be reduced to ₹11,660 on July 30, 2026, and the positions in the ₹11,900 Call Option will continue to exist in the ₹11,660 Call Option.
The lot size of the F&O contracts will not change.
Also, if you hold equity shares of ULTRACEMCO in your Demat account as of July 30, 2026 (ex-date), you will be entitled to receive the dividend, which will be credited directly to your primary bank account within 30 to 45 days from the record date.