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 a week ago and now trading at Rs 375.
Anil Dhirubhai Ambani Group’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 board will not allot the bonus shares to company promoters. The company had issued the shares at Rs 450 while giving a discount Rs 20 a share to retail investors and accrued Rs 7,500 crore from IPO.
As per the Reliance Power Board and The Hindu – The company said its board would consider the free bonus shares at a meeting next Sunday, February 24, 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.
If you still did not get to know your IPO allotment status, please visit here to find out the number of shares alloted to you.
Update: Reliance Power Bonus shares ratio is decided and updated here, in today’s meeting on 24th Feb 2008. The bonus shares will be given to ALL SHAREHOLDERS and NOT ONLY to those retail investors who have applied for RPOWER [Rel Power] IPO shares.buy calls, please subscribe to this blog. You will receive the password in next email to you*