Bonus and right share adjusted price
When a company gives bonus or right shares, NEPSE adjusts its price at book closure. Enter the last closing price and the issue to see where the price starts from.
Before book closure
After book closure
Rs per share- Adjusted price
- 681.82
- Change
- −68.18
- Change %
- −9.09%
- Closing price before book closure
- 750.00
- Right shares paid in (0% × Rs 100.00)
- 0.00
- Closing price plus right money
- 750.00
- Shares after the issue (1 + 10% + 0%)
- 1.1000
- Adjusted price
- 681.82
The adjusted price is the opening reference after book closure. The market price moves from there, so the first trades can be above or below it.
The formula
Adjusted price = (closing price + right price × right ratio) ÷ (1 + bonus ratio + right ratio). Ratios are the percentages divided by 100: a 10% bonus is 0.10 and a 1:2 right issue is 0.50.
Worked examples
| Issue | Closing price (Rs) | Working | Adjusted (Rs) |
|---|---|---|---|
| 10% bonus | 750.00 | 750 ÷ 1.10 | 681.82 |
| 10% bonus and 1:2 right at Rs 100 | 750.00 | (750 + 100 × 0.50) ÷ 1.60 | 500.00 |
Questions
What is the adjusted price after a bonus share?
After book closure a share no longer carries the bonus, so NEPSE lowers its reference price: the closing price divided by 1 plus the bonus ratio. A Rs 750 share with a 10% bonus opens from about Rs 681.82.
How is the price adjusted for right shares?
The money paid for right shares is added before dividing: (closing price + right price × right ratio) ÷ (1 + right ratio). A 1:1 right share is a ratio of 1, or 100%.
Does NEPSE adjust the price for cash dividends?
NEPSE's routine price adjustments are for bonus and right issues, and this calculator covers those. A 2017 directive also allows an adjustment for a cash dividend of 10% or more of the market price, so for a very large cash dividend check NEPSE's notice for that stock.
Do I lose money when the price drops after book closure?
No. You hold more shares at the lower price, so the value of your holding is the same as before the adjustment (plus any right money you paid in). The market price then moves on from there.