How to calculate a Nepal dividend
Enter the shares held on the book-close date and the bonus and cash percentages approved by the company. Both percentages are applied to the share’s paid-up face value, not its NEPSE market price. Most ordinary shares use Rs 100 face value, while mutual fund units commonly use Rs 10—so the field remains editable.
Worked example: 20% bonus and 5% cash
With 100 eligible shares at Rs 100 face value, a 20% bonus produces exactly 20 shares. A 5% cash dividend produces Rs 500 gross cash. The combined face-value dividend is Rs 2,500; at the editable 5% default, estimated withholding is Rs 125, leaving Rs 375 net cash.
Why companies include a cash dividend with bonus shares
Bonus shares are also a dividend distribution for tax purposes. SEBON’s current issuance and allotment amendment requires listed companies distributing bonus shares to arrange payment of the associated dividend tax from the dividend itself. If the cash component does not cover the estimate, follow the company or share registrar’s notice rather than assuming the bonus will be credited automatically.
Bonus shares do not automatically increase portfolio value
A bonus raises the number of shares while spreading the company’s value across more units. The adjusted average cost shown here keeps your original investment constant and divides it by the increased exact share count. The theoretical ex-bonus price is only a mathematical reference; actual trading depends on the market.
Official sources and limitations
SEBON publishes the registered bonus-share records and the current issuance and allotment guidelines. Confirm the final percentage, face value, eligibility and payment process from the company and its share registrar. Rules reviewed June 2026.
Frequently asked questions
Is a 10% cash dividend calculated from the market price?
No. In Nepal, the declared dividend percentage is applied to the paid-up face value of the shares, not the NEPSE market price. For 100 shares with Rs 100 face value, a 10% cash dividend is Rs 1,000 gross.
How many bonus shares do I receive?
Multiply eligible shares by the bonus percentage. One hundred shares with a 20% bonus gives an exact entitlement of 20 bonus shares, before any issuer-specific fractional treatment.
Why can a dividend show a tax shortfall?
The estimated withholding applies to the combined face-value amount of cash and bonus dividends. If the declared cash portion is too small to cover that amount, the shareholder may need to follow the issuer or share registrar's payment instructions.
Does a bonus share create free profit?
Not automatically. Your share count rises, but the market normally adjusts around book closure. The calculator shows an adjusted average cost and a simple theoretical ex-bonus price, not a guaranteed gain.