Bonus Shares Calculator
Bonus Shares Calculator
Calculate post-bonus holdings and ex-bonus price.
Total Post-Bonus Shares
400
Theoretical Ex-Bonus Price
₹150.00
What to do next
Based on your Bonus Shares Calculator, here are the tools you should try next:
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Bonus Shares Ratio Valuation Formula
Calculates adjusted holdings and theoretical stock price adjustments after a bonus share issue.
Worked Example: Holding 100 shares at ₹600 with a 3:1 bonus issue (3 bonus shares for every 1 existing)
Bonus Shares: Rewarding shareholders through capitalization of reserves
Karan held 100 shares of a firm trading at ₹600. The company announced a 3:1 bonus issue, issuing 3 bonus shares for every 1 existing share held from its accumulated cash reserves.
Karan received 300 bonus shares, raising his total holdings to 400 shares. The theoretical stock price adjusted to ₹150 per share, keeping his aggregate investment value at ₹60,000.
Bonus issues capitalize company reserves into free shares for investors. Share price adjusts downward in proportion to the bonus ratio.
Like splits, bonus issues do not dilute equity value, but they signal company financial health and commitment to shareholders.
Frequently Asked Questions
What are bonus shares?
Bonus shares are additional free shares given to existing shareholders based on the number of shares they already hold, capitalized from company reserves.
Is a bonus issue the same as a stock split?
Financially, the outcome is similar (more shares, lower price). But legally, a split divides existing capital, whereas a bonus issues new capital from reserves.
How are bonus shares taxed in India?
The acquisition cost of bonus shares is considered zero. When sold, the entire sale value is treated as capital gains based on the holding period.
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