Stock Split of HDFC Bank Ltd:
HDFC Bank goes ex-split in the ratio 2:1 on September 19, 2019.
*Effect on Holdings:*
When a stock split happens, the share price drops based on the adjustment factor. In the case of HDFCBANK, the adjustment factor is (2⁄1) = 2, since the split ratio is 2:1. So, if you held 1 stock of HDFCBANK at an average price of 2200, after split adjustment you will hold 2 shares with average price of 1100.
*Adjustments for Futures & Options Contracts:*
Strike Price: The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor.
Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 500.