Bonus Share Calculator
A bonus issue hands existing shareholders free additional shares in a fixed ratio — 1:1 means one new share for every share held. No money changes hands and nothing about the business improves; the same pie is cut into more slices, and the price adjusts down in exact proportion on the ex-date.
Enter the ratio and your holding; the calculator shows the shares you'll receive, the theoretical ex-bonus price, your unchanged total value, and your new per-share average cost.
How it works
- An A:B bonus gives A new shares for every B held: bonus shares = holding × A ÷ B.
- Ex-bonus price = cum price × B ÷ (A + B) — a 1:1 bonus halves the price; 1:2 cuts it by a third.
- Average cost adjusts the same way: total invested stays constant across more shares.
Frequently asked questions
Do bonus shares make me richer?
Not by themselves — 200 shares at ₹250 are worth exactly what 100 shares at ₹500 were. Companies issue bonuses to improve liquidity and signal confidence in reserves; any lasting price effect comes from that signal and wider participation, not from the arithmetic.
How are bonus shares taxed when I sell?
Their cost of acquisition is NIL, and their holding period starts at allotment — so selling bonus shares soon after receiving them produces a fully-taxable, usually short-term gain. Note also Section 94(8): buying cum-bonus, receiving the bonus, then selling the originals at an engineered loss (bonus stripping) is disallowed for securities.
When do the bonus shares hit my demat?
You must hold the stock on the record date (buy at least one settlement day before). The new shares are typically credited within a couple of weeks of the record date and become tradeable on announcement by the exchange — the exact dates are in the company's filing.
Why did my P&L look broken on the ex-date?
Brokers adjust the price series but often credit the bonus shares a few days later — so between ex-date and credit, your holdings show half the value. It repairs itself once the shares land; your average cost display also drops to the adjusted figure.
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This tool is an educational estimate, not investment or tax advice. Rates and rules change — verify current figures and consult a professional before acting.