What is the demerger ratio and how does this affect my F&O contracts?
Grasim has announced a demerger of its financial services business to ABCL in the ratio 7:5, that is 7 fully paid up equity shares of ABCL for every 5 shares held in Grasim. The Ex-Date of the demerger is 19 July 2017.
Adjustment of F&O contracts in Grasim:
All contracts with expiry dates July 27, 2017, August 31, 2017 and September 28, 2017 will expire on July 18, 2017.
Derivatives contracts on Grasim shall be introduced again (with expiry dates July 27, 2017, August 31, 2017, September 28, 2017) from July 19, 2017 being the ex-date of the underlying.
Option strikes discovery:
Based on the price determined after opening of the Capital Market segment on July 19, 2017, a minimum of five in-the-money strikes, one at-the-money strike and five out-of-the-money strikes will be made available to the market. The same will be intimated to the trading members through a message broadcast on the trading terminals. Depending upon the price movement of the security in the Capital Market segment, further strike prices may be made available during the day from within the list of strikes given in the circular to be issued on July 18, 2017.
I have 15 shares @1276 post merger of ABNUVO so i would like to know will the current price of Rs 1060 say be adjusted with my share price of 1276 as i am in loss of Rs 3200. I mean will the price ie 1276 in my demat account will come down to ex-date price so that loss is adjusted.