Mphasis (₹2,628.9) announced an interim dividend of ₹55 per equity share of face value ₹10 for the financial year 2023-24. This will also lead to necessary adjustments in the futures and options (F&O) contracts on this stock on the record date.
The company has decided July 10 as the record/effective date. On this day, the stock price and all derivatives contracts on Mphasis will be adjusted appropriately.
With respect to adjustment in futures contracts, the reference rate of the relevant contract on July 9 will be considered. Reference rate will be the mark-to-market settlement price of the relevant futures contract. So, the open positions shall be carried forward at the daily settlement price on July 9 less the dividend amount of ₹55.
For example, if the nearest expiry futures close at ₹2,600 on July 9, it will be revised to ₹2,545 (₹2,600 minus ₹55). Accordingly, the contract value will come down from ₹7,15,000 to ₹6,99,875 (lot size of Mphasis is 275 shares).
Likewise, in options, all the strike prices in the option chain of Mphasis will be subtracted by 55 from July 10. For example, the strike price of ₹2,550 and ₹2,600 will be modified to ₹2,495 and ₹2,545 respectively.
The above measures are not likely to impact the overall trend of this stock. So, traders can stick to their views and are only required to note the changes in the contracts that they hold.