Key Takeaway

When a company issues 1:1 bonus shares, shareholders receive one free share for every share held. While the number of shares doubles, the stock price adjusts proportionally, keeping total value unchanged.

Bonus Shares Calculator

Calculate post-bonus holdings and ex-bonus price.

Total Post-Bonus Shares

400

Theoretical Ex-Bonus Price

150.00

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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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