This right share calculator tells you everything you need to know before a rights issue closes — how many kitta you’re eligible for, what the adjusted ex-right price will be, how much additional cash you need to pay, and what your new WACC becomes after applying. All in one place, before you make the decision.
Right Share Calculator
NEPSE TERP ex-right price, eligible kitta, apply vs skip, new WACC, and portfolio P/L.
Usually face value (रू 100 equity / रू 10 MF), or a premium offer price if announced.
* TERP = (LTP + Right% × Offer) ÷ (1 + Right%). Market price adjusts on ex-date even if you skip. Right kitta is floored.
How NEPSE right-share TERP works
Theoretical Ex-Rights Price (TERP) = (Pre-closure LTP + Right% × Offer Price) ÷ (1 + Right%). Example: LTP रू 800, 25% rights at रू 100 → (800 + 25) ÷ 1.25 = रू 660. Eligible kitta = floor(held × right%).
Apply vs skip
If you apply, you pay offer × right kitta and your WACC blends old cost with the offer price. If you skip, your kitta stays the same but the market still opens near TERP — so portfolio value falls. Renounceable rights may be sold separately; this tool models apply or skip only.
Right Shares vs Bonus Shares — Quick Difference
A lot of investors confuse the two. Bonus shares cost you nothing — the company issues them free from reserves. Right shares are different. The company offers you the chance to buy new shares at a fixed offer price, usually Rs 100 face value sometimes at a premium, before a deadline. You can apply or you can skip. But if you skip, your existing shares get diluted because more shares enter the market and the price adjusts downward on the ex-date.
That price adjustment on ex-date is what catches people off guard. Your LTP drops even though nothing changed about your holding. How to calculate value of right share properly — that’s exactly what this calculator handles.
How to Use the Right Share Calculator — Exact Steps
Right Share % preset buttons At the top you’ll see quick buttons — 10%, 20%, 25%, 30%, 50%, 100%. These are the most common right share ratios companies announce. Tap one to fill the Right Share % field instantly, or type your own percentage below.
Kitta You Hold Enter how many shares of this company you currently hold. Slider goes from 1 to 10,000 kitta, or type directly. This is your current holding as shown in your Mero Share portfolio.
Avg. Buy Price (WACC) Enter your weighted average cost of capital — the average price per share across all your purchase lots. You’ll find this in your TMS portfolio under the company. Slider goes from Rs 10 to Rs 5,000.
Right Share % Enter the right share percentage the company announced. If the ratio is 1:4 (one right share per four held), that’s 25%. If it’s 1:1 (one right per every share held), that’s 100%. The ratio displayed next to the field updates as you type.
Offer Price per Kitta The price the company is charging per right share. Usually Rs 100 for face value rights. Some companies issue at a premium — enter whatever the official announcement states. Slider goes from Rs 10 to Rs 1,000.
Current Market Price (LTP) Enter the last traded price of the stock right now. This is used to calculate the adjusted ex-right price and to show your unrealized profit or loss.
Apply for Rights toggle This is the key switch. Turn it on if you’re planning to apply for the rights issue. Turn it off if you want to see what happens if you don’t apply. The calculator shows results for both scenarios side by side in the comparison tab below.
Click Calculate Rights
Seven results appear immediately:
Portfolio Value — current market value of your existing holding at LTP.
Right Kitta Eligible — how many new shares you can buy. Calculated as floor(Kitta Held × Right% ÷ 100). The floor means decimals get rounded down to whole kitta — you can’t apply for fractional shares.
Adjusted Ex-Right Price — the theoretical market price after the ex-date. Formula: (LTP + Offer Price × Right%) ÷ (1 + Right%). This is the price adjustment NEPSE applies when rights shares are issued.
Additional Investment — total cash you need to pay to receive your eligible right kitta. Right Kitta × Offer Price.
New Total Kitta — your holding after rights are credited. Current kitta plus right kitta received.
New WACC After Rights — your recalculated weighted average cost after paying offer price for new kitta. Formula: (Old Kitta × Old WACC + Rights Kitta × Offer Price) ÷ New Total Kitta. This is the number you need to update in Mero Share for correct CGT calculation later when you sell.
Unrealized Profit / Loss — based on your new WACC vs current LTP after adjustment.
Below the main results, hit Step-by-Step Breakdown to see the full calculation laid out. Switch to the Applied vs Not Applied tab to compare your portfolio outcome both ways — useful when you’re deciding whether applying for rights is worth it at the current market price.
Worked Example
You hold 400 kitta. WACC Rs 650. Company announces 25% rights at Rs 100 offer price. LTP Rs 800.
Right kitta eligible: floor(400 × 25 ÷ 100) = 100 kitta Additional investment: 100 × Rs 100 = Rs 10,000 Adjusted ex-right price: (800 + 100 × 0.25) ÷ 1.25 = (800 + 25) ÷ 1.25 = Rs 660 New total kitta: 500 New WACC: (400 × 650 + 100 × 100) ÷ 500 = (2,60,000 + 10,000) ÷ 500 = Rs 540
So after applying, your cost per share drops to Rs 540 even though you paid Rs 650 originally. That’s because the Rs 100 right shares pulled your average down. Your portfolio is now 500 kitta at adjusted ex-price Rs 660 vs new WACC Rs 540 — still in profit.
FAQs
What happens if I don’t apply for rights? Your share count stays the same but the price adjusts downward on ex-date. You don’t lose shares but your per-share value drops because new shares diluted the total. The Applied vs Not Applied comparison in the calculator shows you the exact difference.
What does 1:4 ratio mean? It means for every 4 kitta you hold, you’re eligible for 1 new right share. That’s a 25% right issue. 1:2 would be 50%, 1:1 would be 100%.
Why does right kitta round down? You can’t buy fractional shares on NEPSE. If your exact eligibility works out to 17.5 kitta, you can only apply for 17.
Do I need to update WACC in Mero Share after applying? Yes. After rights are credited to your account, update your WACC with the new figure this calculator gives you. Wrong WACC means wrong CGT calculation when you eventually sell.
Can I apply for more rights than my eligibility? Some companies allow renunciation — applying for additional rights beyond your eligible amount if other shareholders didn’t apply. Check the specific rights prospectus for whether this is allowed.
Run your numbers through the right share calculator above before the issue deadline. Knowing your adjusted price and new WACC ahead of time makes the apply-or-skip decision a lot clearer.
Calculations follow standard NEPSE ex-right adjustment formula. Always verify eligibility through your broker or Mero Share account.