# Right Share Adjustment Price Calculator

> Work out the ex-rights market price, including the cash subscription at par value.

https://laganisaathi.com/calculators/right-adjustment-price.md

## Formula

**Ex-rights price** = (market price + par value × rights% ÷ 100) ÷ (1 + rights% ÷ 100)

The cash subscription is part of the ex-rights price, because a rights holder can
buy new shares at par value. This assumes the entitlement is taken up and paid
for; a holder who lets the rights lapse sees a different adjustment.

## Reading a rights ratio

Nepali right issues are usually published as a colon ratio in the order
**held : new**, so `10:3` means 3 new shares for every 10 held, which is 30%.

| Published ratio | Rights percentage |
|---|---|
| 1:1 | 100% |
| 10:3 | 30% |
| 1:3 | 300% |
| 4:1 | 25% |

## Worked example

Market price Rs 1,000, rights 100%, par value Rs 100:

- Subscription cost = 100 × (100 ÷ 100) = Rs 100
- Numerator = 1000 + 100 = Rs 1,100
- Denominator = 1 + (100 ÷ 100) = 2
- **Adjusted price = Rs 550**

## Related

- [Bonus share adjustment price](https://laganisaathi.com/calculators/bonus-adjustment-price)
- [Share buy and sell cost](https://laganisaathi.com/calculators/share)
- [Right share guide for Nepal](https://laganisaathi.com/guides/right-share-nepal)