📊 Right Share Adjustment Calculator
Example: If market price is Rs 390, right percentage is 25%, and subscription price is Rs 100:
(390 + (100 × 0.25)) / (1 + 0.25) = (390 + 25) / 1.25 = 415 / 1.25 = Rs 332
What is a Right Share Adjustment Calculator and Why Investors Should Use It ?
If you're someone who actively invests in stocks, you've probably heard of right shares — those bonus offers companies give to existing shareholders to buy more stock at a discounted price. Sounds good, right?
But here’s the catch: when a company issues right shares, the market price of the stock gets adjusted, and many investors get confused about what their actual investment is worth afterward.
That’s where a Right Share Adjustment Calculator becomes your best friend. It does the math for you — instantly — so you know the real value of your holdings post-right issue.
🔍 What is a Right Share Adjustment?
In simple words, when a company issues right shares (say 25% at Rs. 100), it’s like splitting a pizza and offering you a discounted extra slice. But that doesn’t mean your total pizza got bigger — the value gets diluted.
So, to understand what your new average cost or adjusted market price is, you can use the following formula:
Adjusted Price = (Market Price + (Right Share Price × Right %)) ÷ (1 + Right %)
Manually calculating that each time? Not fun. That’s why this calculator exists.
⚙ How to Use the Right Share Adjustment Calculator
Using the calculator is straightforward:
Enter the current market price before the book closure date.
Input the right share percentage. Example: 25% = 1 right for every 4 shares.
Choose or enter the paid-up value per right share. (Rs. 100 is common, but some are Rs. 10 or custom.)
Click “Calculate.”
You’ll instantly see:
The original share price
Subscription value
Right ratio
Most importantly: your adjusted share price
Example:
Market price = Rs. 390
Right % = 25%
Subscription = Rs. 100
Adjusted price = (390 + 25) / 1.25 = Rs. 332.00
🆚 Right Share Adjustment vs Weighted Average Cost
A Weighted Average Cost Calculator tells you your average buying price when you’ve bought shares at different times and prices.
On the other hand, the Right Share Adjustment Calculator tells you how much your share is worth after dilution due to a right issue.
Both are valuable tools — but for different purposes.
🤔 Frequently Asked Questions
Q1. What markets can I use this for?
You can use this for NEPSE (Nepal Stock Exchange), BSE, NSE, or any stock market that offers right shares.
Q2. Can I enter custom right share prices?
Yes! The calculator allows Rs. 100, Rs. 10, or any custom value as subscription price.
Q3. Will this help me decide whether to apply for rights?
Absolutely. If the adjusted price is lower than expected, it might not be worth it. This tool gives clarity.
Q4. Is this the same as bonus share adjustment?
No. Bonus shares are free, and this tool is designed for paid right shares only.
💡 Final Thoughts
The Right Share Adjustment Calculator is a must-use tool if you want to make smart decisions around right issues. Whether you're a long-term investor or someone who trades actively on NEPSE, this tool helps protect your portfolio from overpaying or getting diluted.