Capital action tool
Capital Reduction Calculator
Estimate cancelled shares, remaining shares, cash payment and theoretical adjusted price based on existing shares, current price, reduction ratio and cash payment per cancelled share.
Calculator
Capital reduction calculator
Enter existing shares, current price, capital reduction ratio and cash payment per cancelled share to estimate the theoretical impact.
Results are estimates. Company announcements should be followed for capital reduction terms and any cash payment details.
Capital reduction calculation formula
- Cancelled shares
- Existing shares × capital reduction ratio / 100
- Remaining shares after reduction
- Existing shares - cancelled shares
- Cash payment amount
- Cancelled shares × cash payment per cancelled share
- Theoretical adjusted price
- (Current portfolio value - cash payment amount) / remaining shares
- Total theoretical value
- Theoretical value of remaining shares + cash payment amount
Example capital reduction calculation
If an investor has 1,000 shares, the current price is 20 TRY and the capital reduction ratio is 50%, 500 shares are cancelled and 500 shares remain. If there is no cash payment, the theoretical adjusted price becomes about 40 TRY and total theoretical value remains 20,000 TRY.
Frequently asked questions
What is capital reduction?
Capital reduction is a corporate action where a company reduces its share capital by a defined ratio. It may affect share count and theoretical price.
How are remaining shares calculated after capital reduction?
Cancelled shares are calculated by multiplying existing shares by the capital reduction ratio and dividing by 100. Remaining shares are found by subtracting cancelled shares from existing shares.
How does cash payment affect the calculation?
Cash payment amount is calculated by multiplying cancelled shares by cash payment per cancelled share. The theoretical price is then calculated after subtracting this payment from portfolio value.