Bonus and Right Shares: What They Do to Your Price
Bonus %, right % and book closure explained, plus how your average cost adjusts.
By DigitalNepal · Updated 2026-10-04 · Verify current figures on official sources
Try it right here:
Bonus shares: 10.00 · Rights taken: 20.00
New quantity: 130.00 kitta
Total invested: Rs 42,000
New average cost: Rs 323.08
Bonus % and right % need shareholder and regulatory approval and can change - follow the official company notice. Educational only.
Bonus shares are free extra shares given from company reserves; right shares are new shares existing holders may BUY at a set (usually discounted) price. Both increase share count and adjust the market price downward on book-closure day.
Your wealth doesn't magically grow: more shares at a proportionally lower price. The bonus-right calculator on this site shows your new average cost.
Steps
1Learn the announcement
Companies propose e.g. 10% bonus + 20% right. These need AGM and regulatory approval - proposals can change, so follow official notices.
2Note the book-closure date
Only holders recorded before book closure qualify. Buying after the last eligible day misses the entitlement.
3Decide on rights carefully
Rights cost real money. Apply only if you want more exposure to that company at the offered price - letting them lapse is allowed.
4Recalculate your average
Enter old quantity, average price, bonus % and rights taken into the calculator to get the adjusted cost per share.
Good to know: A falling price on book-closure day is the mathematical adjustment, not a crash. Check your new quantity before panicking.
FAQ
Are bonus shares taxable?
Tax treatment changes with rules. Ask your broker or a tax professional for the current treatment before filing.
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