Stock Split, Bonus Share & Rights Issue Calculator

Stock split, bonus share and rights issue calculator

When a company splits its shares, issues bonus shares or offers a rights issue, the number of shares in your demat or brokerage account changes — and so do the price and your average cost. This stock split calculator works out all three corporate actions: your new share count, the adjusted average buy price, the theoretical price after the ex-date and the value of your holding before and after.

For a bonus issue it uses the bonus share calculation formula (shares held × bonus ratio), for a split or consolidation it rescales quantity, price and face value, and for a rights issue it calculates your entitlement, the cash needed, the theoretical ex-rights price (TERP) and what each right is worth if you renounce it. Amounts can be in rupees, dollars or any other currency.

How to use the Stock Split, Bonus Share & Rights Issue Calculator

1. Choose Stock split, Bonus issue or Rights issue.
2. Enter the shares you hold, your average buy price (optional) and the market price before the record date.
3. Enter the ratio as announced: “a new shares for every b held” — a ₹10 → ₹2 split is 5 for 1, a 1:2 bonus is 1 for 2, a 1:5 rights issue is 1 for 5.
4. For a rights issue, add the issue price and whether you will subscribe to all, some or none of your rights.
5. Read the new share count, adjusted cost and theoretical ex-price, and copy the result.

Stock Split, Bonus Share & Rights Issue Calculator features

Formulas

Split (a for b): new shares = shares × a ÷ b; price, cost and face value per share × b ÷ a. Your total value and total cost do not change. Bonus (a for b): bonus shares = shares × a ÷ b; theoretical ex-bonus price = cum price × b ÷ (a + b); average cost = total cost ÷ new number of shares. Rights (a for b at price X): entitlement = shares × a ÷ b and TERP = (b × P + a × X) ÷ (a + b) — the value of all shares before plus the cash raised, divided by the shares after, the same definition IAS 33 (Earnings per Share, paragraph A2) uses. A right is worth TERP − X.

Worked examples: 120 shares bought at ₹1,850 and trading at ₹2,400 become 600 shares at ₹480 with a cost of ₹370 after a 5-for-1 split (face value ₹10 → ₹2). A 1:1 bonus instead gives 240 shares at a theoretical ₹1,200 and an average cost of ₹925. A 1-for-5 rights issue at ₹1,800 entitles you to 24 shares costing ₹43,200; TERP is (5 × 2,400 + 1,800) ÷ 6 = ₹2,300, so each right is worth about ₹500.

Things to know

• To receive the shares you must hold them on the record date. In India’s T+1 settlement, buy at least one trading day before the record date.
• A split or bonus does not make you richer: the price adjusts so the holding is worth the same. Only a rights issue asks for new money.
• Fractions: companies usually consolidate fractional entitlements, sell them and pay the proceeds to the holders.
• Rights entitlements (REs) in India trade on the exchange during the renunciation period; if you neither apply nor sell them, they lapse worthless.
• Tax: under Indian income-tax rules bonus shares are treated as acquired at nil cost on the allotment date, and the original shares keep their cost — so the averaged cost shown here is for tracking, not for capital-gains tax. Check the rules where you file. The capital gains tax calculator and the stock profit calculator help with the sale.