The board of GMR Infra has announced a composite scheme of arrangement for the demerger of its non-airport business. As per the scheme, GMR Infra will be issuing 1 equity share of GMR Power and Urban Infra for every 10 shares held in GMR Infra and has fixed January 12, 2022, as the record date to ascertain the shareholders who will be eligible for the corporate action. You can check the announcement from the company here.
As GMR Infra trades in the F&O segment, the following adjustments will be carried out on the Futures and Options contracts:
All existing F&O contracts of GMR Infra with expiry dates January 27, 2022, February 24, 2022 and March 31, 2022, will expire on January 10, 2022 and will be and 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 GMRINFRA.
All positions in the existing F&O contracts on the underlying GMRINFRA will cease to exist pursuant to the final settlement on January 10, 2022. And new Futures and Options contracts on GMRINFRA will be introduced again with expiry January 27, 2022, February 24, 2022 and March 31, 2022, from January 11, 2022 onwards. You can check the announcement from the exchange here.