This is how share price is adjusted after issuance of Bonus & Right Share – ShareSansar

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Every time a listed company offers Bonus and Right Shares, the share price is adjusted by the Nepal Stock Exchange to reflect the addition of shares due to bonus/right issuance. Such, prices are adjusted immediately after the book closure dates.

Here is the formula to calculate the adjusted price:

The market price in the below formula is the last transaction price (LTP) of a scrip just before the book closure date.

1. Bonus Share

Adjusted Price =    Market Price/(1 + Bonus Share%)

For example, if a company offers 25 % bonus shares and the closing Market price of the share just before the book closure date is Rs 390/unit then the adjusted price after the bonus share will be:

Adjusted Price =    Market Pice /(1 + Bonus Share%)

            = 390 / (1 + 0.25)

                      =  390/1.25

Adjusted Price =     Rs 312 / unit

 

Published on: ShareSansar (Oct 13, 2015)