Corporate Actions
Bonus, mergers, stock splits and more
Bonus shares are given for free, so they’re credited at Rs. 0. This means your total investment stays the same, but the number of shares increases. As a result, the average price of the shares goes down.
🧮 Example:
Suppose you buy 10 shares of a company at ₹50 each.
Your total investment is:
💰 10 shares × ₹50 = ₹500
Later, the company issues a 1:1 bonus, giving you 10 additional shares for free.
Now, your total shareholding becomes 20 shares, but your investment is still ₹500.
So, your new average price per share is:
📉 ₹500 ÷ 20 shares = ₹25 per share
Related FAQs

