Karachi: In a recent notification, Sazgar Engineering Works Limited (“SAZEW”) has announced a significant adjustment concerning its Cash Settled Futures (CSF) contracts, following the declaration of a Book Closure scheduled for Tuesday, February 10, 2026. This announcement was made through a letter dated January 27, 2026, and was disseminated via the Pakistan Stock Exchange (PSX) website.

The declaration necessitates the conversion of the standardized CSF contracts of SAZEW—namely SAZEW-CFEB, SAZEW-CMAR, and SAZEW-CAPR—into non-standardized contracts, specifically SAZEW-CFEBN1, SAZEW-CMARN1, and SAZEW-CAPRN1, effective from February 6, 2026. The methodology for determining the contract specifications and ex-price of these non-standardized contracts has been meticulously outlined.

According to information available from the Pakistan Stock Exchange (PSX), the adjustment process involves several steps. Initially, an adjustment factor is calculated by dividing the Ex-Stock Price (READY) by the Stock Price CUM (READY). Subsequently, the New Ex-CSF price is derived by multiplying the CSF Price CUM by this adjustment factor. Further calculations involve determining the Non-Standard Shares Lot or Contract Multiplier, which is computed by dividing the initial CSF contract multiplier by the adjustment factor.

Additional steps in the methodology include accounting for tax adjustments, where a dividend tax rate of 15% is applied, and truncating the new contract multiplier after tax adjustment. The adjusted Ex-CSF Price is then calculated by multiplying the New Ex-CSF Price by the non-standard contract multiplier, followed by division by the new non-standard contract multiplier. Finally, the Adjusted Reference Free Float is determined by dividing the FF Shares before corporate action by the adjustment factor.

All concerned parties are requested to take note of these adjustments. The adjusted non-standardized CSF price, contract multiplier, and free float of all contracts will be communicated at the end of the day on February 4, 2026. The comprehensive adjustments underscore the meticulous approach adopted by Sazgar Engineering Works Limited to manage its financial instruments in light of corporate actions.