ICICIBANK 1:10 Bonus Issue : Adjustment of lot size and strike prices for F&O contracts

How does this change the Lot size and the Strike prices of F&O contracts in ICICIBANK?


ICICI Bank Limited (Symbol : ICICIBANK) has issued a bonus to its shareholders in the ratio of 1:10, i.e. 1 equity share for every 10 equity shares bought on or before Ex-Cum date of June 19, 2017. (Ex-Date is June 20, 2017 and Record Date is June 24th, 2017).

Calculation of adjustment factor:
Adjustment factor for Bonus issue of A:B is defined as (A+B)/B. In the case of ICICIBANK, the adjustment factor is (1+10)/10 = 1.1, since the bonus issue ratio is 1:10.

Adjustment of Option Strike Price:
The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor. A strike of 305 will be 277.25, 310 will be 281.80 and so on.

Adjustment of 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 2500*1.1 = 2750.

Option contracts before adjustment:

Options contracts after adjustment:

Adjustment of Futures price:
The adjusted futures price shall be arrived at by dividing the old futures price by the adjustment factor.

Futures contract before adjustment:

Futures contract after adjustment:

Adjustment of Quantity Freeze limit:
The new Quantity Freeze limit is 1,65,000(60 lots per order).