Today: Jul 25, 2024
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Bonus Share Adj. Calculator

What is Bonus Share?

Bonus shares are additional shares issued to the existing shareholders in proportion to the number of shares they previously own with no extra cost. When shareholders invest in a company, they expect the company to provide dividends on yearly basis. The company can provide dividends in the form of Shares or Cash.

Usually, Bonus shares are issued as an alternative to dividend payments when a company is low on cash reserves. They are declared in ratios of 1:2, 1:3, 4:1, 5:8, etc.

What is Record Date?

The record date is the cut-off date set by the company to be eligible for bonus shares. All the shareholders who have the shares in their Demat Account on the record date will be entitled to receive bonus shares from the company.

What is Ex-Bonus Date?

If you want to be eligible for the bonus share, you have to buy the shares at least one day before the ex-bonus date.

What is Bonus Date?

It is a date on which the company will credit the bonus shares to the shareholders' Demat Account. It can be between 1-30 days from the Record date.

Advantages of Bonus Shares

  • Bonus shares are tax-free for the shareholders.
  • In the long term, there's a good chance to increase the investment as the number of shares are increasing.
  • In the time of declaration of dividend, the shareholder may get higher dividends as the number of shares has increased after the bonus shares are allotted.

How is Right Share Adjustment Price calculated?

To calculate Right Share Adjustment Price, you need to use the following formula.

Adjusted Price
Market Price
Bonus Share

How to use Bonus Share Adjustment Calculator?

To use Bonus Share Adjustment Calculator

  • Enter Market Price (Before Book Closure) value
  • Enter percent of Bonus Share
  • No need to press equal button. (It is automated)
  • The final result you will see is Market Price After Bonus Share.
  • To Clear calculations press CE button