Shannon index value is lowest when:
Shannon diversity declines when abundance becomes concentrated in a single species. In H′ = −Σpᵢ ln pᵢ, species with moderate and similar proportions collectively create high uncertainty about the identity of a randomly selected individual. If one species dominates, its pᵢ approaches 1 and the remaining proportions approach 0; the identity of a sampled individual becomes highly predictable, so H′ becomes small. In the limiting case of only one species, p = 1 and H′ = −1 ln 1 = 0. Equal abundance instead maximizes H′ for a given richness, with H′max = ln S. High richness also tends to increase
Ref: NCERT Biology Class 12, Ch. 15 Biodiversity and Conservation