The Bonus Share ratio Calculator helps you quickly determine how many additional shares you'll receive after a bonus issue and your updated total holding. A bonus issue is when a company rewards shareholders by issuing additional shares free of cost, based on a specific ratio such as 1:1 or 2:5. Use this calculator to avoid confusion and stay informed about your actual share count post-issue.

What Does the Bonus Share Price Ratio Calculator Do?

When a listed company issues bonus shares, the number of outstanding shares increases, while the stock price decreases proportionally. This calculator takes the current market price and the bonus share ratio (e.g., 1:1, 2:5) and calculates the new adjusted stock price post-bonus issue. It ensures you understand the true value of your holdings after such corporate actions.

• Accurately calculates umber of shares you get after bonus share issue
• Supports all ratio formats (e.g., 1:1, 2:3, 3:5, etc.)
• Mobile-friendly and easy to use
• Real-time results with no login or signup required
• 100% free and beginner-friendly

Example

Suppose you hold 200 shares of a company that announces a 1:2 bonus issue (1 bonus share for every 2 held).
Bonus Shares = (200 x 1) / 2 = 100 shares
Total Shares After Bonus = 200 + 100 = 300 shares
So, after the bonus issue, you will hold 300 shares in total.

Frequently Asked Questions

What is a bonus share issue?

A bonus share issue is when a company gives additional shares to existing shareholders for free, based on a specific ratio, from its accumulated profits or reserves.

Do bonus shares increase the value of my investment?

No, bonus shares increase your shareholding but reduce the price per share proportionally. Your total investment value remains the same initially.

Is tax applicable on bonus shares?

Bonus shares themselves are not taxed upon receipt, but capital gains tax may apply when you sell them, based on holding period and gains.

Why do companies issue bonus shares?

Companies issue bonus shares to reward shareholders, improve stock liquidity, and signal financial stability without using cash.