Rights Issue Adjustment For Mahindra & Mahindra Financial Services Ltd, Futures & Options Contracts Revised

Mumbai: Mahindra & Mahindra Financial Services Ltd (MFSL) is offering equity shares to its shareholders through a rights issue. For every 8 shares held, 1 new share can be bought at a discounted price of Rs. 194. This is called a 1:8 rights issue. The company has set May 14, 2025, as the record date. Only shareholders holding shares on this date can apply for the rights shares.

Futures & Options Contracts Adjusted

As per SEBI rules, when companies issue rights shares, the prices and lots in Futures & Options (F&O) markets must be adjusted. These changes help ensure fairness in trading. The BSE will make these changes at the end of the day on May 13, 2025. The next day, May 14, will be the ex-date — the first day the stock trades without rights entitlement.

Adjustment Factor Explained

To adjust the F&O contracts, an “adjustment factor” is calculated. In this case, it is 0.972795. This number was worked out based on the share price before the rights issue and the discounted issue price.

Changes in Options Contracts

Strike Prices: All existing strike prices will be multiplied by the adjustment factor. For example:

Rs. 230 becomes Rs. 223.75

Rs. 235 becomes Rs. 228.60

Market Lot: The lot size changes from 2000 to 2056 shares.

Changes in Futures Contracts

Futures Price: The old futures price will be multiplied by the same adjustment factor.

Market Lot: Like options, the new lot size is 2056 shares instead of 2000.

Download Updated Contract File

Traders must download the updated contract file on May 14 to see the new strike prices and market lots. For more help, they can contact their Relationship Managers at BSE.