This is how share price is adjusted after issuance of Bonus & Right Share

Every time a listed company offers Bonus and Right Shares, the share price is adjusted by the Nepal Stock Exchange to reflect the addition of shares due to bonus/right issuance. Such, prices are adjusted immediately after the book closure dates. Here is the formula to calculate the adjusted price: The market price in the below formula is the last transaction price (LTP) of a scrip just before the book closure date.

1. Bonus Share

Adjusted Price =    _____Market Price_____ .                                      1 + Bonus Share% For example, if a company offers 25 % bonus shares and the closing Market price of the share just before the book closure date is Rs 390/unit then the adjusted price after the bonus share will be: Adjusted Price =    ___Market Price____   =    _  390__   =     __ 390___ .                                  1 + Bonus Share%              1 + 0.25                1.25 Adjusted Price =     Rs 312 / unit   2. Right Share Adjusted Price =    _____Market Price_+ (Subscription Price per unit  x right %)____ .                                                                                   1 + Right % For example, Century Commercial Bank Limited had offered 25% right share at the subscription price of Rs 100/ unit. The Last Trading Price (LTP) before the book closure was Rs 390/unit. Now the adjusted price after the right issue will be: Adjusted Price =       390 _+ (100 X 0.25)    = 390+25   =    415 .                                          1 + 0.25                      1.25             1.25 Adjusted Price =    Rs 332 / unit