INFO EDGE (India) (that is, Naukri) (₹ 7.025) has announced a division of actions with a relationship or 5: 1. Therefore, the adjustment factor will be 5. The division will lead to the necessary adjustments in the futures and options contracts (F&P) on this date on the date of registration.
The company has decided on May 7 as the registration/validity date. On this day, the price of shares and all derivative contracts in Info Edge (India) will adjust properly.
With respect to the adjustment in futures contracts, the reference rate of the relevant contract on May 6 will be considered. The reference rate will be the settlement price of Mark-To Market of the corresponding futures contract. Therefore, open positions will be taken to May 7 at the daily liquidation price on May 6 divided by 5, the adjustment factor.
Suppose the nearest expiration future closes in ₹ 7,000 on May 6, ₹ 1,400 (₹ 7,000 divided by 5) will be reviewed. In addition, the size of the lot will increase five times from 75 current actions to 375 contract shares. Therefore, there is no change in the value of the contract.
Similarly, in the options, all the raffle prices in the Edge (India) option chain will be divided by 5 from May 7. For example, the exercise price of 6,500 and 6,600 will be modified to 1,300 and 1,320 respectively.
That said, it is likely that the previous measures do not affect the general trend of this action. Therefore, merchants can comply with their views and should only take into account the changes in the contracts they possess.
Posted on April 25, 2025