The Bonus Share Calculator helps you estimate the impact of a bonus issue on your investment. Bonus shares are free shares issued by a company to its existing shareholders. This tool calculates your new share quantity and the adjusted buy price per share post-bonus.
The Bonus Share Calculator helps investors understand the impact of bonus issues on their stock holdings. When a company issues bonus shares, shareholders receive additional free shares in proportion to their existing holdings, rewarding them from the company's accumulated reserves.
How Does the Bonus Share Calculator Work?
Bonus shares are issued at a ratio like 1:1 (one free share for each share held) or 2:1 (two free shares for each share held). The calculator shows your new total shares and the adjusted price per share after the bonus issue.
Bonus Shares = (Existing Shares ÷ Existing Ratio) × New RatioWhere:
- • Bonus Ratio = New Shares : Existing Shares (e.g., 1:2 means 1 bonus for every 2 held)
- • New Total Shares = Existing Shares + Bonus Shares
- • Adjusted Price = (Old Price × Existing Shares) ÷ New Total Shares
- 1:1 Bonus: Receive 1 free share for every 1 share held (shares double)
- 1:2 Bonus: Receive 1 free share for every 2 shares held (50% increase)
- Record Date: You must hold shares on this date to receive bonus
- Ex-Bonus Date: Stock trades without bonus entitlement
Example: 1:1 Bonus Share Calculation
Kavitha holds TCS shares and the company announces a 1:1 bonus.
Before Bonus Issue:
• Shares Held: 200 shares
• Price per Share: ₹3,600
• Total Value: ₹7,20,000
After 1:1 Bonus:
• Bonus Shares: 200 shares (free)
• Total Shares: 200 + 200 = 400 shares
• New Price: ₹3,600 ÷ 2 = ₹1,800 per share
• Total Value: ₹7,20,000 (unchanged immediately)
Kavitha's shares doubled from 200 to 400!
Bonus Shares vs Stock Split
Both increase shares but have different mechanics:
| Aspect | Bonus Shares | Stock Split |
|---|---|---|
| Source | Company reserves/profits | Restructuring existing shares |
| Face Value | Remains same | Gets divided |
| Reserves | Transferred to share capital | No change |
| Signal | Shows strong reserves | Shows growth confidence |
Frequently Asked Questions
⚠️ Disclaimer
The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.