Sunday, February 17, 2008

Reliance Power to Issue Bonus Shares

Reliance Power Board will give free bonus shares to all it’s shareholders to compensate the losses everyone of us suffered when the company was listed on 11th February.

ADAG’s Reliance Power shares are poised for up move on this news tomorrow on 18th Feb, Monday. This might lift the market up as well, the same way it pulled down the market on the Reliance Power IPO listing day of 11th Feb. On the listing day, Reliance Power share was down by 32%.

But Reliance Power is not going to allot the bonus shares to promotersof the company. The company had issued the shares at Rs 450 and at Rs. 430 to retail investors and accrued Rs 7,50,000 crore from IPO.

The company said its board would consider the free bonus shares at a meeting next 24-02-2008, to benefit over four million of its investors and the cost would be accepted by promoter group by way of diluting its shareholders.

The company said that promoters would accept the dilution in their shareholding in the broader interest of investors.

Besides a proposal for issuing free bonus shares to all categories of shareholders, excluding promoters, the board would also consider other measures that could reduce the cost of Reliance Power Ltd shares below the IPO price of Rs 430 per share for retail investors, and Rs 450 per share for institutional and other categories of investors.

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Stock Market said...

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