Monday, February 18, 2008

Reliance Power soars 12% on bourses

Reliance Power on Monday soared nearly 12 per cent on the National Stock Exchange and touched a high of Rs 430, price at which shares were allotted to retail investors, after the Anil Ambani group said it is mulling a bonus issue.

On the Bombay Stock Exchange, the scrip jumped 11.67 per cent over its previous close in early morning trade and witnessed a high of Rs 429.60.

Reliance Power opened firm at Rs 418.65 on the BSE, then rallied to touch an intra-day high of Rs 429.60. As many as 25.27 lakh shares exchanged hands on the BSE.

The shares of Reliance Power were quoted at Rs 425.60 on the BSE and Rs 425.70 on the NSE at 10.20 hours.

Reliance Power on Sunday said its board would meet on February 24 to consider a bonus issue, which will benefit over four million investors in the company and the cost would be accepted by promoter group by way of diluting its shareholding.

The unprecedented move comes a week after the dismal opening of Reliance Power at the stock exchanges. The scrip, after listing at Rs 547.8, slid into red within a minute and closed the day at Rs 372.5, a level much below the issue price.

After a fabulous response for the IPO that saw a demand of Rs 7,50,000 crore for the issue of Rs 11,560 crore, the listing-day blues had led to severe criticism of Anil Ambani.

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, the company had said.

Source : msn