How are right shares adjusted?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.
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