The NEPSE bonus share calculator helps investors understand how bonus share announcements affect their holdings — particularly the theoretical ex-bonus price, the new WACC after receiving additional shares, and whether the announced bonus is attractive or merely cosmetic. Bonus shares (stock dividends) are extremely common in Nepal's market, and many investors misunderstand their true financial impact.
This guide explains exactly how ex-bonus prices are calculated, the TERP formula, how bonus shares affect WACC and break-even, and the tax treatment of bonus shares in Nepal.
Calculate Your NEPSE Bonus Share Impact Instantly
Enter shares held, bonus percentage, and current price to get ex-bonus price, TERP, and new WACC.
How to Calculate Ex-Bonus Share Price (Adjusted Price)
When a company announces a bonus share, the share price adjusts on the ex-bonus date to reflect that new shares have been created without new capital entering the company.
Ex-Bonus Price = (Current Price × Old Shares) ÷ (Old Shares + Bonus Shares)
Or simply: Ex-Bonus Price = Current Price ÷ (1 + Bonus Rate)Example: 20% Bonus Share
Current price before ex-bonus: NPR 1,200 | Bonus rate: 20% (1 new share per 5 held)
Ex-Bonus Price = 1,200 ÷ (1 + 0.20) = 1,200 ÷ 1.20 = NPR 1,000
Why This Matters
On the ex-bonus date, the price drops from NPR 1,200 to approximately NPR 1,000 automatically. Your total holding value remains the same — you now have 20% more shares at 20% lower price. No actual wealth is created by a bonus share in isolation.
TERP: Theoretical Ex-Rights Price
TERP is the theoretical adjusted price after a bonus share or rights issue:
TERP = (Market Price × Old Shares + Issue Price × New Shares) ÷ (Old Shares + New Shares)For Pure Bonus (no payment)
Since bonus shares are issued free, Issue Price = 0:
TERP (bonus) = (Market Price × Old Shares) ÷ (Old + New Shares)Example: 30% Bonus on 100 Shares at NPR 900
New shares = 30 | TERP = (900 × 100) ÷ 130 = 90,000 ÷ 130 = NPR 692.31
Recalculating WACC After Receiving Bonus Shares
Bonus shares increase your share count without any additional investment, which reduces your WACC (Weighted Average Cost per share) and break-even price.
New WACC Formula
New WACC = Total Investment Cost ÷ (Original Shares + Bonus Shares)Example
Bought 100 shares of NABIL at NPR 850 WACC. Total investment: NPR 85,000.
Received 20% bonus = 20 additional shares.
New WACC = 85,000 ÷ 120 = NPR 708.33
Your investment hasn't changed (NPR 85,000), but you now need the price to reach only NPR 708 to break even instead of NPR 850. This is why bonus shares are beneficial for long-term investors — they lower the break-even and reduce downside risk.
How to Use the Tool (Step by Step)
- 1
Open the tool
Visit the on ToolsArena.
- 2
Enter your values
Fill in the required fields with your data.
- 3
View results
See calculated results instantly — no signup needed.
Frequently Asked Questions
Does receiving bonus shares increase my actual wealth?+−
Not immediately. Bonus shares proportionally reduce the price per share on the ex-bonus date, so total market value remains constant. However, if you believe the company will continue growing and the lower per-share price attracts more investors, bonus shares can increase liquidity and potentially drive price recovery above the adjusted level over time.
What is the tax on bonus shares in Nepal?+−
5% tax is withheld on the face value of bonus shares at the time of allotment. Example: 100 bonus shares at NPR 100 face value → NPR 10,000 face value → NPR 500 tax deducted at source. When you eventually sell, capital gains tax also applies on the profit above face value.
How do bonus shares affect my WACC in NEPSE?+−
Bonus shares reduce WACC proportionally. If your WACC was NPR 800 on 100 shares (total cost NPR 80,000) and you receive 20% bonus (20 shares), new WACC = 80,000 ÷ 120 = NPR 666.67. Your break-even price drops from 800 to 667 — a significant improvement for long-term holders.
What is the difference between bonus share and stock split in Nepal?+−
Bonus shares are issued from retained earnings/reserves — shareholders receive free additional shares. Stock splits divide existing shares into more units without drawing from reserves. Economically similar, but accounting treatment differs: bonus shares reduce retained earnings, splits just change share count and face value. NEPSE listings more commonly announce bonus shares; pure stock splits are rare.
When should I sell before or after the ex-bonus date?+−
Generally, hold through ex-bonus date to receive the bonus shares unless you need liquidity. The price adjusts down on ex-bonus date, but your holding value is unchanged. If your WACC is already well below the current price, receiving bonus shares further lowers your WACC and reduces risk. Selling just before ex-bonus means losing the bonus shares entirely.
Calculate Your NEPSE Bonus Share Impact Instantly
Enter shares held, bonus percentage, and current price to get ex-bonus price, TERP, and new WACC.
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