# Tata Elxsi Ltd goes ex-bonus in the ratio 1:1 on 18 Sep 2017. How does this affect my equity holdings and F&O positions?

**URL:** https://tradingqna.com/t/tata-elxsi-ltd-goes-ex-bonus-in-the-ratio-1-1-on-18-sep-2017-how-does-this-affect-my-equity-holdings-and-f-o-positions/20436
**Category:** Stocks
**Created:** [September 15, 2017, 12:04pm UTC](https://tradingqna.com/t/tata-elxsi-ltd-goes-ex-bonus-in-the-ratio-1-1-on-18-sep-2017-how-does-this-affect-my-equity-holdings-and-f-o-positions/20436 "2017-09-15T12:04:44Z")
**Posts on this page:** 1
**Showing post:** 3

<div class="post-metadata">

### Author: ![BharatW](https://tradingqna.com/user_avatar/tradingqna.com/bharatw/32/3886_2.png) [@BharatW](https://tradingqna.com/u/BharatW)
#### Post date: [September 15, 2017, 12:11pm UTC](https://tradingqna.com/t/tata-elxsi-ltd-goes-ex-bonus-in-the-ratio-1-1-on-18-sep-2017-how-does-this-affect-my-equity-holdings-and-f-o-positions/20436/3 "2017-09-15T12:11:50Z")

</div>

Tata Elxsi Ltd goes ex-bonus in the ratio 1:1 on 18 Sep 2017, i.e. 1 bonus share issued at Rs.0 for every share held in the Demat account of all eligible shareholders.

**Effect on Holdings:**  
When a bonus is issued, the share price drops, in this case by a factor of 2. So if you held Tata Elxsi shares at an average price of Rs.1600, the price of each share after bonus would adjust to 1600/2 = Rs.800. Each share held will become 1 share at Rs.800 and 1 bonus share at Rs.0, thereby maintaining your overall investment value.  
Please note that a bonus issue only increases liquidity and not your investment value.

Until the bonus shares are credited to your Demat, your Tata Elxsi holdings in Kite/Q will show a drop in P&L of approximately 50%. Once the bonus shares are credited to your Demat at an avg price of Rs.0, your P&L will be restored to its correct value.  
You will receive an SMS from CDSL when your bonus shares are credited to your Demat which could take upto 2 weeks.  
Here are the steps on [How to add bonus share price in Q backoffice.](https://tradingqna.com/t/how-to-add-bonus-share-price-in-q-backoffice/16484/3?u=bharatw)

**Effect on F&O positions:**  
Option strike prices are divided by the factor of 2. A strike price of 1800 becomes 900, 1850 becomes 925 and so on. F&O lot sizes are multiplied by the factor of 2. The old lot size of 400 will be revised to a new lot size of 800.  
The future and option prices are divided by the factor of 2 to maintain the same contract value as of before the bonus issue.  
If you’re unable to see the revised market lot size on Kite, please **do a hard refresh Ctrl + Shift + R** and the new lot size will be updated on Kite.

This is the [NSE Circular for F&O Adjustments in Tata Elxsi Ltd.](https://www.nseindia.com/content/circulars/CMPT35785.pdf)

To know more about corporate actions and its impact on stock prices, do read this [Varsity article](https://zerodha.com/varsity/chapter/five-corporate-actions-and-its-impact-on-stock-prices/)

---

_[View the full topic](https://tradingqna.com/t/tata-elxsi-ltd-goes-ex-bonus-in-the-ratio-1-1-on-18-sep-2017-how-does-this-affect-my-equity-holdings-and-f-o-positions/20436)._