Bonus Share Issue Calculator
Calculate bonus shares received, adjusted cost basis, and portfolio value after bonus share issue announcements
Current shares before bonus
Your purchase price per share
Bonus ratio announced by the company
Current trading price per share
Share Count
Portfolio Value
Bonus Shares Received
100
Total Shares After Bonus
200
Adjusted Cost per Share
₹250.00
For tax and accounting purposes
Profit
₹70000.00
+140.00% return
Your cost basis per share decreased from ₹500 to ₹250.00
You received 100 bonus shares at no cost, increasing your holdings by 100%
Bonus issues don't change your portfolio value immediately - the market price typically adjusts proportionally
What is a Bonus Issue?
A bonus issue (also called bonus shares or scrip issue) is when a company issues additional shares to existing shareholders at no cost, proportional to their current holdings. For example, in a 1:1 bonus issue, shareholders receive 1 additional share for every share they own. Your ownership percentage remains the same, but your cost basis per share decreases.
Why Do Companies Issue Bonus Shares?
- Reward shareholders without paying cash dividends
- Increase liquidity by having more shares in circulation
- Make shares more affordable for retail investors
- Convert reserves and retained earnings into share capital
- Signal confidence in the company's financial health
Important Tax Note: In India, bonus shares are not taxable at the time of receipt. However, when you sell bonus shares, they are treated as long-term capital assets regardless of the holding period, with the cost of acquisition being zero. The adjusted cost basis shown in this calculator is for record-keeping purposes to understand your overall investment performance.
Bonus Issue vs Stock Split - Key Differences
While both increase the number of shares, a bonus issue comes from the company's reserves (reducing balance sheet reserves), whereas a stock split simply divides existing shares. Both result in lower per-share prices and increased share count, but bonus issues are generally seen as more positive signals from management about the company's financial strength.