How to calculate Bonus Shares (taking example of 100 shares)?

Practical Calculations of Bonus Shares (Indian Rupees)

Let’s consider an example with an individual holding 100 shares of a company before a bonus issue.

Before Bonus Issue:

• Number of shares held by the individual: 100
• Market price per share: ₹200

Company announces a 1-for-2 bonus issue.

Bonus Issue Details:

• Bonus ratio: 1-for-2 (i.e., 1 new share for every 2 existing shares)

Summary of Changes for the Individual Shareholder

• Before Bonus Issue:
  • Number of Shares: 100
  • Market Price per Share: ₹200
  • Total Value of Shares: 100×₹200=₹20000
• After Bonus Issue:
  • Number of Shares: 150
  • Theoretical Ex-Bonus Price per Share: ₹133.33
  • Total Value of Shares: 150×₹133.33=₹20000

CLICK HERE – for detailed calculation of bonus shares