Bonus Share Calculator Nepal – NEPSE Kitta & WACC Tool

Every AGM season in Nepal brings the same wave of questions in investors’ Viber groups and Facebook discussions: “Falano company le 30% bonus diyecha — kati kitta aucha mero? Price kati hola ex-date ma?” And then someone pulls out a phone calculator, does rough math, and posts a number that may or may not be right.

This Bonus Share Calculator exists to end that guesswork. Enter your current kitta, your average buy price (WACC), the bonus percentage, and the current market price — and you’ll instantly get your bonus kitta received, the adjusted ex-price, your new WACC calculated the exact way Mero Share and CDS Nepal calculate it, and your unrealized profit or loss after the bonus.

No rough estimates. No Excel sheets. No manual formula.

What Is a Bonus Share in Nepal?

When a NEPSE-listed company announces a bonus share (also called a stock dividend), it issues additional shares to existing shareholders free of cost. These shares come from the company’s retained earnings or reserves — money the company earned but held back rather than distributing as cash.

The bonus announcement is expressed as a percentage. A 20% bonus means you receive 20 new kitta for every 100 kitta you hold. A 30% bonus means 30 new kitta per 100. It’s proportional — shareholders with more kitta receive more bonus shares.

Bonus shares are separate from right shares, which require you to pay money to buy additional shares. Bonus shares cost you nothing extra. But they’re also not free money — which is the part many newer NEPSE investors misunderstand.

What Happens to the Share Price After a Bonus Issue?

This is the part that trips people up most often.

When a company issues bonus shares, the total number of shares in the market increases. But the company’s underlying value hasn’t changed — it just distributed existing reserves as shares. So the share price adjusts downward on the ex-date (the date from which new buyers are no longer entitled to the bonus) to reflect the increased share count.

The formula for the adjusted price is:

Adjusted Ex-Price = LTP × 100 ÷ (100 + Bonus%)

For example, if a stock is trading at रू 800 before the ex-date and the company announced a 25% bonus:

Adjusted Ex-Price = 800 × 100 ÷ (100 + 25) = 800 × 100 ÷ 125 = रू 640

Your portfolio value on that day stays exactly the same — you just hold more kitta at a proportionally lower price. If you held 100 kitta at रू 800 (total value: रू 80,000), after the bonus you hold 125 kitta at रू 640 (total value: still रू 80,000).

The wealth is not created or destroyed by the bonus announcement itself. What changes is your kitta count and your per-share price — and that has direct implications for your WACC and future CGT calculation.

How to Use the Bonus Share Calculator

The calculator has four inputs. Here’s exactly what to enter in each:

Kitta You Hold

Enter the number of shares you currently hold before the bonus. Use whole numbers — you can also use the quick-select buttons (1 kitta, 10,000 kitta) to bracket your range or use the slider.

Avg. Buy Price / WACC (रू)

This is your Weighted Average Cost of Capital — the average price per share across all your purchases of this stock. If you bought 50 kitta at रू 500 and later bought another 50 kitta at रू 700, your WACC is रू 600 (not the latest price, not the first price — the weighted average).

You can find your current WACC for any holding directly in your Mero Share account under portfolio details. Use that number here.

Bonus Percentage (%)

Enter the bonus percentage as announced by the company. Common values are 10%, 15%, 20%, 25%, 30%, and 50% — quick-select buttons are available for these. For other values, type directly into the field. The calculator accepts any percentage from 1% to 200%.

Current Market Price / LTP (रू)

Enter the Last Traded Price of the stock. This is used to calculate your adjusted ex-price and your current unrealized profit or loss. Use the current market price from the NEPSE website or your broker’s trading platform.

Once all four fields are filled, click Calculate Bonus. Results appear instantly.

What the Results Show

Bonus Kitta Received

The number of new shares you’ll receive. Calculated as:

Bonus Kitta = (Kitta Held × Bonus%) ÷ 100

Fractional kitta is floored to the nearest whole number — exactly how NEPSE and CDS handle it. If your calculation comes out to 32.7 kitta, you receive 32. The fractional part is not issued or compensated in Nepal’s current system.

New Total Kitta

Your original kitta plus the bonus kitta received. This is your new holding after the bonus is processed.

Adjusted Ex-Price

The theoretically correct market price for the stock on the ex-date, calculated as explained above. This is what the price should open at on ex-date to reflect the bonus mathematically. Actual market price on ex-date may differ based on sentiment and trading activity, but this is the baseline adjustment.

New WACC After Bonus

This is the most important number for tax purposes — and the one most investors get wrong.

Per NEPSE/CDS Nepal standard (the same method used by Mero Share), bonus shares are assigned a cost of Rs. 10 per kitta — the face value — regardless of what the market price is at the time. This is not negotiable or variable. It’s the standard.

The formula:

New WACC = (Old Kitta × Old WACC + Bonus Kitta × 10) ÷ New Total Kitta

This matters enormously when you eventually sell, because your Capital Gains Tax (CGT) is calculated on the difference between your selling price and this WACC. A lower WACC means a higher taxable gain. Understanding your true post-bonus WACC helps you plan when to sell and what your tax liability will look like.

Total Investment

Your original total investment, calculated as Old Kitta × Old WACC. This figure does not change with the bonus — bonus shares cost you nothing, so your total invested capital stays the same.

Unrealized Profit / Loss

The difference between your current portfolio value (New Total Kitta × Current LTP) and your Total Investment. This shows whether you’re currently in profit or loss on this holding, at the current market price, after accounting for the bonus shares.

Before vs. After — Seeing the Full Picture

The Before vs After tab in the calculator shows a side-by-side comparison of your position pre- and post-bonus across all key metrics. This is useful for understanding the exact impact of the bonus in one view — especially if you’re tracking multiple holdings that have received different bonus percentages over time.

A Practical Example

Let’s work through a real scenario.

Situation: You hold 200 kitta of a company. Your WACC is रू 750. The company announces a 25% bonus. Current LTP is रू 820.

Step 1 — Bonus Kitta: 200 × 25 ÷ 100 = 50 kitta

Step 2 — New Total Kitta: 200 + 50 = 250 kitta

Step 3 — Adjusted Ex-Price: 820 × 100 ÷ 125 = रू 656

Step 4 — New WACC: (200 × 750 + 50 × 10) ÷ 250 = (150,000 + 500) ÷ 250 = 150,500 ÷ 250 = रू 602

Step 5 — Total Investment: 200 × 750 = रू 1,50,000 (unchanged)

Step 6 — Unrealized P/L (at current LTP of 820): Portfolio Value = 250 × 820 = रू 2,05,000 Unrealized Profit = 2,05,000 − 1,50,000 = रू 55,000

After the ex-date, when price adjusts to the theoretical रू 656: Portfolio Value = 250 × 656 = रू 1,64,000 Unrealized Profit = 1,64,000 − 1,50,000 = रू 14,000

Notice how the portfolio value dropped significantly after ex-date, but your actual wealth didn’t disappear — the price simply adjusted to reflect the extra kitta. The calculator handles all of this automatically.

Why Your New WACC Matters for Capital Gains Tax (CGT)

Nepal’s CGT on listed securities is currently 5% for individuals (for shares held over a year) and 7.5% for shorter holding periods. CGT is calculated on:

CGT = (Selling Price − WACC) × Kitta × CGT Rate

Because bonus shares enter your portfolio at Rs. 10 (face value), they significantly reduce your blended WACC. A lower WACC means a larger taxable gain when you sell — even if the bonus shares themselves didn’t cost you anything. This is why it’s critical to track your exact post-bonus WACC rather than estimating.

The calculator gives you the exact WACC figure that Mero Share and CDS use, so there are no surprises when your broker’s system calculates your CGT on a future sale.

Bonus Shares vs. Right Shares — Key Difference

These two terms sometimes get confused by newer investors:

Bonus Shares — Free additional shares issued from retained earnings. You receive them automatically if you’re a shareholder on the book closure date. No payment required.

Right Shares — Additional shares offered to existing shareholders at a specified price (usually below market price). You have the right to buy them, but it’s optional and requires payment. If you don’t apply, you can let the rights lapse or, in some cases, sell them.

This calculator handles bonus shares only. For right share calculations, a separate tool is needed.

Frequently Asked Questions

What is a bonus share in Nepal (NEPSE)? A bonus share is a free additional share issued by a NEPSE-listed company to existing shareholders from its retained earnings or reserves. It’s announced as a percentage — a 20% bonus means 20 new kitta for every 100 you hold. Bonus shares are distributed automatically to shareholders registered on the book closure date, with no payment required.

How is bonus kitta calculated? Bonus Kitta = (Kitta You Hold × Bonus Percentage) ÷ 100. Fractional results are floored to the nearest whole number per NEPSE/CDS standard.

Why does share price fall after bonus issue? Because the total number of shares increases while the company’s underlying value stays the same. The price adjusts using: Adjusted Ex-Price = LTP × 100 ÷ (100 + Bonus%). This keeps your total portfolio value unchanged — you hold more kitta at a proportionally lower price.

How is new WACC calculated after bonus in Nepal? Per NEPSE/CDS and Mero Share standard, bonus shares are added to your portfolio at Rs. 10 (face value) per kitta. New WACC = (Old Kitta × Old WACC + Bonus Kitta × 10) ÷ New Total Kitta. This is the same calculation your broker’s system uses for CGT purposes.

Do bonus shares affect Capital Gains Tax (CGT)? Yes, significantly. Bonus shares lower your blended WACC because they’re added at Rs. 10 face value. A lower WACC means a higher taxable capital gain when you eventually sell. Knowing your exact post-bonus WACC helps you plan your exit and estimate your tax liability accurately.

What is book closure date? The book closure date is the cutoff date set by the company for determining which shareholders are eligible for the bonus. You must hold shares before this date to receive the bonus. Shares bought on or after the book closure date are not entitled to the announced bonus.

What happens to fractional bonus kitta? Fractional kitta is floored to the nearest whole number. If your calculation yields 34.8 bonus kitta, you receive 34. The 0.8 fractional portion is not issued or compensated under Nepal’s current CDS system.

Is this calculator aligned with Mero Share? Yes. The WACC calculation uses Rs. 10 per bonus kitta — the exact standard applied by Mero Share and CDS Nepal. The adjusted ex-price formula also matches the standard NEPSE adjustment method.

For other NEPSE investor tools, explore our Share Calculator for buy/sell charge calculations, and our EMI Calculator for loan planning.