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Your holdings

Right share cost

What a rights issue costs you to take up, and what it does to your average price.

Your numbers

Rs

A 1:2 issue offers 50 new shares per 100 held. A 1:1 issue offers 100.

Rs

Rights on NEPSE are commonly issued at par.

Result

Shares you may take up
100 kitta
Cash needed
Rs 10,000.00
Holding if you take it up
300 kitta
New average costWas Rs 500.00
Rs 366.67
Show the working
  1. Entitlement = 200 × 50 ÷ 100 = 100 shares
  2. Cash needed = 100 × Rs 100.00 = Rs 10,000.00
  3. Total invested = Rs 1,00,000.00 + Rs 10,000.00 = Rs 1,10,000.00
  4. New average = Rs 1,10,000.00 ÷ 300 = Rs 366.67

How this is worked out

  • A rights issue is an offer to buy more shares at a set price, usually below the market price. Unlike a bonus, it requires money from you.
  • Taking it up lowers your average cost when the issue price is below your average, and raises it when it is above.
  • Not taking it up means your stake in the company is diluted — you own the same number of shares in a company that now has more of them.

On NEPSE

Rights are applied for through Mero Share within the offer window. An unexercised right lapses; on NEPSE it is not sold on your behalf, so a missed deadline is a real loss.

Read the lesson: IPOs, FPOs and rights shares→

This is a calculator, not advice. It works out arithmetic from the numbers you enter — it does not know your circumstances and does not tell you what to buy. Rate defaults were last checked in August 2026.