Demerger Calculator

How it's calculated

Your total cost stays the same. It is split in the ratio of the cost-attribution percentage announced in the demerger scheme. Parent average = remaining cost ÷ parent shares, and demerged average = allocated cost ÷ new shares.

How a demerger splits your cost

In a demerger, a company separates one of its businesses into a new company, and shareholders receive shares of that new company. Your total cost does not change. It is divided between the parent shares and the new shares, in the proportion announced in the demerger scheme.

For example, if you hold 100 shares at an average of ₹1,000 (a total cost of ₹1,00,000), receive 1 new share for each share held and 20% of the cost is attributed to the demerged business, your parent shares are worth ₹800 each at cost and your new shares ₹200 each.

Frequently asked questions

Where do I find the cost split percentage?

It is stated in the demerger scheme or the company's announcement. Use that figure, not an estimate.

Does a demerger change my total investment?

No. The total cost stays the same. It is only divided between the two companies' shares.

Why do I need the new average prices?

You will need them to work out profit or loss when you sell either set of shares later.

How to use the Demerger Calculator

Enter parent shares held, average buy price, new shares received, for every, cost attributed to demerged business. The calculator updates as you type and shows New parent average price, along with the figures behind it. It runs in your browser, so nothing you enter is sent anywhere. Use the Reset button to go back to the example values.