Bonus Share
Free · Live calculation · Your data stays in your browser
Your Holding
Pre-bonus details
Bonus Ratio
for every
Example: 1 for 2 means 1 bonus share for every 2 shares you hold
Bonus Shares You Get
+50
Free shares from the company
Total After Bonus
150 sh
New Price/Share
₹333.33
Total Value
₹50,000.00
What Happens
Total value stays the same, you get more shares
Before
100
@ ₹500.00
₹50,000.00
After
150
@ ₹333.33
₹50,000.00
Insight
You get 50 free shares from the company — tax-free at issue. Total value stays the same; the price just adjusts proportionally.
Pro Tip
- •Bonus shares are tax-free at the time of issue.
- •When you sell, the cost basis of bonus shares is considered as zero.
- •Companies issue bonus from reserves - it's a sign of healthy retained earnings.
- •Bonus increases your share count, making the stock more liquid.
What is Bonus Share?
Bonus shares are free additional shares given to existing shareholders by a company. The company issues them from its reserves. A 1:2 bonus means you get 1 additional share for every 2 shares you hold. Total value remains the same as the price adjusts down proportionally. Companies issue bonus shares to reward loyal shareholders and improve liquidity.
How to Use
- 1Enter your current shares held
- 2Enter the current price per share
- 3Enter the bonus ratio (e.g., 1 for 2)
- 4See bonus shares received and adjusted price
Formula
Bonus Shares = (Current Shares × Bonus For) / Bonus Every
New Total Shares = Current + Bonus
Adjusted Price = (Current × Old Price) / New TotalFrequently Asked Questions
Technically free but not extra wealth. Your total value remains the same - you get more shares but at a lower per-share price. The company essentially capitalizes its reserves into share capital.