IPO vs FPO vs right share vs bonus share
Four ways new shares reach investors in Nepal. Two are open to the public (IPO, FPO), one only to existing shareholders (right), and one is free (bonus). Here's how they differ.
The four, side by side
| IPO | FPO | Right share | Bonus share | |
|---|---|---|---|---|
| Who issues it | A company not yet listed | A company already listed | A listed company | A listed company |
| Who can apply | The public (plus reserved quotas) | The public | Only shareholders on the book-closure date | Nobody applies — it's credited |
| What you pay | Issue price (often Rs 100; premium or book-built for some) | Issue price (can include a premium) | Usually Rs 100 per share | Nothing (5% tax on face value) |
| How | Meroshare → My ASBA (C-ASBA, CRN) | Meroshare → My ASBA | Meroshare → My ASBA during the right issue | Automatic to your demat |
| How many | Min 10 kitta in fixed-price issues; lottery if oversubscribed | As per the prospectus | In proportion to holding (e.g. 1:1 = 100%) | In proportion to holding (e.g. 20%) |
| Price effect | Lists on NEPSE after allotment | Adds shares to the market | NEPSE adjusts price down after book closure | NEPSE adjusts price down after book closure |
IPO — Initial Public Offering
A company sells shares to the public for the first time, then lists on NEPSE. In fixed-price issues the minimum is 10 kitta — about Rs 1,000 at Rs 100 — and when far more people apply than there are shares, allotment is a lottery of 10 kitta each. See how to apply and how allotment works.
FPO — Further Public Offering
Same idea as an IPO, but by a company that is already listed. You apply the same way in Meroshare. Because the company already trades, compare the FPO price with the market price and read the prospectus for why it is raising money.
Right share (हकप्रद शेयर)
A right issue lets existing shareholders buy new shares, usually at Rs 100, in proportion to what they hold. A 1:1 (100%) right means one new share for every share you held on the book-closure date.
- You must hold the shares in your demat by the book-closure date to be eligible (with T+2 settlement, buy early enough — see T+2 settlement).
- Apply in Meroshare during the right-issue window. Not applying is allowed — but your ownership share gets diluted.
- After book closure NEPSE adjusts the market price. Try the right share calculator.
Example: market price Rs 390, 25% right at Rs 100 → (390 + 100 × 0.25) ÷ 1.25 = Rs 332.
Bonus share
A bonus share is a free share paid from the company's profits/reserves. A 20% bonus means 20 new shares for every 100 you hold. Your total value doesn't jump — NEPSE adjusts the price so the market value of your holding stays roughly the same at adjustment.
Example: market price Rs 390, 25% bonus → 390 ÷ 1.25 = Rs 312. Bonus shares are taxed at 5% of face value, which is why companies often add a small cash dividend "for tax". Try the bonus share calculator.
Frequently asked questions
Is a bonus share free money?
No. You get more shares, but the price is adjusted down by the same proportion, so the value of your holding is roughly unchanged at adjustment. What changes is the number of shares you own.
Can anyone apply for a right share?
No — only people holding the company's shares on the book-closure date. Unsubscribed right shares may later be auctioned as per the issue's terms.
What's the difference between IPO and FPO?
An IPO is the first public sale before listing; an FPO is a further public sale by a company that is already listed.
Are bonus shares taxed?
Yes — 5% of the face value of the bonus shares, typically withheld by the company (often from an accompanying cash dividend).
Sources
Facts on this page last verified 6 October 2026.
- Know about bonus & right share calculation after adjustment — ShareSansar
- Sector-wise dividend distribution: companies pay cash dividend for tax on bonus shares — ShareSansar
- IPO allotment concludes: lucky applicants get 10 units each, the rest return empty-handed — ShareSansar
- ASBA & C-ASBA in Nepal: everything you need to know (CRN = C-ASBA Registration Number) — Investopaper
General information for learning only — not investment, tax or legal advice, and not a recommendation to buy or sell any security. Rules and fees change: the latest notices from NEPSE, SEBON, CDSC, IRD and your own broker/DP are final.
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