How to Calculate WACC in MeroShare (NEPSE): Bonus, Right & Secondary Share Formula
Official Rule & Calculation Summary: How to Calculate WACC in MeroShare (NEPSE): Bonus, Right & Secondary Share Formula
Direct Answer: Step-by-step CDSC MeroShare WACC calculation guide for Nepal Stock Exchange (NEPSE) investors. Learn how IPO, bonus shares (Rs. 100 par value), right shares, and secondary broker fees determine your Weighted Average Cost of Capital and CGT.
Under CDS and Clearing Limited (CDSC) and Securities Board of Nepal (SEBON) regulations, every investor selling equities on the Nepal Stock Exchange (NEPSE) must declare their Weighted Average Cost of Capital (WACC) in MeroShare before generating an Electronic Debit Instruction Slip (EDIS). The exact CDSC formula is: WACC per Share = Total Acquisition Cost of All Share Lots ÷ Total Combined Shares (Kitta), where secondary market buys include broker commission, 0.015% SEBON fee, and NPR 25 DP charge, while IPO, bonus, and right shares are valued at their NPR 100 par value.
- CDSC Par Value Rule: Bonus shares and right shares always carry a cost basis of NPR 100 per kitta (par value) in MeroShare WACC calculations.
- Secondary Market Cost Basis: TMS purchases include base trade value + tiered broker commission (0.27%–0.40%) + 0.015% SEBON fee + NPR 25 DP fee.
- Capital Gains Tax (CGT) Impact: An accurate WACC directly determines your taxable capital gain—taxed at 5% for holdings over 365 days and 7.5% for holdings of 365 days or less.
- Closeout Penalty Warning: Failing to complete My Purchase Source, My WACC, and EDIS transfer within T+1 settlement timelines triggers a mandatory 20% closeout fine.
1. Official CDSC Cost Basis Rules by Share Source
When MeroShare aggregates multiple historical acquisitions of the same scrip, each lot type follows a specific statutory cost rule under the Income Tax Act 2058 and CDSC guidelines:
| Share Acquisition Source | Cost Basis Per Share in MeroShare | Additional Fees Included in WACC |
|---|---|---|
| IPO / FPO Allotment | NPR 100 (or IPO Premium Price) | NPR 0 (No broker or SEBON fee) |
| Bonus Share Dividend | NPR 100 Par Value | NPR 0 (5% cash dividend tax is separate) |
| Right Share Allotment | NPR 100 Par Value | NPR 0 |
| Secondary Market Buy (TMS) | Actual Market Purchase Price | Broker Commission (0.27%–0.40%) + 0.015% SEBON + Rs. 25 DP |
2. Realistic Worked Case Study: IPO + Secondary Buy + 20% Bonus Share
Suppose an investor holds Nabil Bank (NABIL) shares acquired across three separate events: (1) 10 kitta allotted in an IPO at NPR 100, (2) 50 kitta bought on the secondary market at NPR 480 per share, and (3) 12 bonus shares (20% bonus) credited later:
| Lot Description | Quantity (Kitta) | Unit Cost / Rate | Broker + SEBON + DP Fees | Total Lot Cost (NPR) |
|---|---|---|---|---|
| Lot 1: Primary Allotment | 10 Kitta | NPR 100.00 | NPR 0.00 | NPR 1,000.00 |
| Lot 2: Secondary Market Buy | 50 Kitta | NPR 480.00 | NPR 124.20 (0.40% comm + SEBON + Rs. 25 DP) | NPR 24,124.20 |
| Lot 3: 20% Bonus Shares | 12 Kitta | NPR 100.00 (Par Value) | NPR 0.00 | NPR 1,200.00 |
| Combined Portfolio Total | 72 Kitta | WACC = 26,324.20 ÷ 72 | — | NPR 26,324.20 (WACC = NPR 365.61/share) |
Final Thoughts
Calculating your exact WACC before placing sell orders on TMS ensures you know your true break-even price and prevents overpaying Capital Gains Tax. Use our free NEPSE WACC Calculator to simulate bonus, right, and secondary market lots instantly.
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