Stock Split Alert: JUBLFOOD 

Did you know that companies make their shares affordable to small investors going for a stock split?

Yes, stock split is one of the known measures undertaken by companies to boost the number of shares by reducing the share price. ( Learn more about stock split here)

As per recent exchange circulars, Jubilant Foodworks Ltd.(JUBLFOOD) has decided to split its shares in the ratio of 5:1 and has fixed 20-Apr-2022 as the record date for the same.

Due to the split, the prices (strike price and future price) and market lot size of JUBLFOOD will be revised for future and options contracts as follows:

Adjustments for Future and Options Contracts: 

1. Futures/Strike Price: The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor. 

2. Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot(125) by the adjustment factor (5). The revised market lot would be 625 (125 * 5).

Note: Adjustment factor for Stock split of A: B is defined as (A/B). In the above case, the adjustment factor is (5/1) = 5, since the split ratio is 5:1.

The above changes will come into effect from 19-Apr-22.

Circulars: NSE1 | NSE2 | BSE1 |BSE2

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