HDFC Bank goes ex-split in the ratio 2:1 on September 19, 2019. Here’s how it impacts your equity holdings and F&O positions

As per SEBI guidelines for adjustments to F&O contracts in case of the announcement of corporate actions (Methodology explained here on NSE website) :

HDFC Bank has considered and approved stock split at the ratio of 2:1, i.e, each share with face value of Rs.2 will be split into 2 shares with face value of Re.1.

The Company has fixed Record Date as September 20, 2019, for the purpose of Share Split.

Symbol : HDFCBANK
Bonus issue ratio : 2:1
Ex-Date : September 19, 2019

Effect on Holdings -

When a stock split happens, the share price drops based on the adjustment factor. Adjustment factor for Stock split of A: B is defined as (A/B). In the case of HDFCBANK, the adjustment factor is (2/1) = 2, since the split ratio is 2:1.

So, if you held 1 stock of HDFCBANK at an average price of 2200, after split adjustment you will hold 2 shares with average price of 1100.

Adjustments for Option Contracts -

  1. Strike Price: The adjusted strike price shall be arrived at by dividing the old strike price by the
    adjustment factor.
  2. Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the
    adjustment factor. The revised market lot would be 500.

Ex: HDFCBANK 26-SEP-2019 2200 CE lot size of 250 after adjustment will be HDFCBANK 26-SEP-2019 1100 CE lot size 500.

Adjustments for Future contracts -

  1. Futures price: The adjusted futures price shall be arrived at by dividing the old futures price by the adjustment factor.
  2. Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 500.

Ex: HDFCBANK 26-SEP-2019 2200 lot size 250 after adjustment will be HDFCBANK 26-SEP-2019 1100 lot size 500.

Note: The above changes are effective from 19th September, 2019. Refer to this circular from NSE for more info on this. To know more about the impact of corporate actions on stock prices, check this chapter on Varsity.

4 Likes

Can you please let me know how to buy suppose 2280 CE of HDFCBANK at price Rs 5. How to place an AMO order for tomorrow.
Please help

As the stocks splits today i.e. 19 Sep 2019, when they will reflect in our holdings? Currently it is showing the numbers of stock I have with the half value of that stock.
Eg: I have 4 stock of HDFC with the current rate of let us say Rs. 2200/stock, so in my holdings I have still 4 stock with the value Rs. 1100/stock.

1 Like

It generally takes 3 working days for the split shares to start showing up in your holdings.

1 Like

Okay, Thank you

1 Like

The share is trading as face value 1 from today and these sellers must give delivery as per t plsu 2 . the share must be in demat before this time.
if you have non POA based demat account or if you are a big investor even with a POA based demat account , you can very well sell today . the delivery to broker is required by 10 am of 23 September as per t plus 2.

@nithin @siva @Bhuvanesh
VERY POOR MODERATING . There was absolutely nothing wrong in my 2 post but just to safe guard your personal interest you have deleted it.
BYE .

@akshaymalviya

I was wrong there. It is credited on the third day.

My bad. My info was wrong. Reinstated your post.

Hi Just want ti know that in three working days my shares will be seen in my holdings? right now it says discrepancy in holdings

my console shoowing massage to fix the discrepency manually , how can i do that ?

same problem i am also getting…it is not showing average cost.

Dear All- If i purchased some shares on 18th, will I be getting the split shares? Please clarify

I cant sell my post-split quantity on kite…

Yes, the split quantities will start showing under your holdings in three days.

Yes, since the ex-date was 19th and you’ve bought shares before ex-date, you’re eligible to receive the split shares. If you’d bought it on ex-date you wouldn’t have been eligible.

You’ll have to wait until the quantities get credited before you can sell them. The split shares usually get credited by the 3rd day from the ex-date.

SPLIT is always in continues trade and since the share started trading as split as face value 1 from September 19 . one can very well sell on September 19 .
24 lakh 33720 shares was net delivery on 19 September at NSE and 62100 shares at BSE . how these people will give delivery of sale if you can not sell on 19 September ?
@VenuMadhav @Shashwat_Saraff @

MUST get credit before early morning of 23 September Monday as those who sold on 19 September will give delivery . hence credit date will be 21 September as 22 September is Sunday

This is the best time to invest in the HDFC Bank stock. Just wait to come down around 1100. I have read lot of good Q&A on investorq portal for the same. Just wait to go again back to 1100.

The process followed at Zerodha is that we show holdings only if they are held in your demat account. Till the time you receive credit into your demat, they wouldn’t show up in the holdings for you to sell.

This is why i posted on 19 September :
if you have non POA based demat account or if you are a big investor even with a POA based demat account , you can very well sell today . the delivery to broker is required by 10 am of 23 September as per t plus 2.