Reliance Power (IPO) To Give Bonus Shares - Free for All Shareholders

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(ADAG) Reliance Power (NSE: rpower) 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 7,50,000 crore from IPO.

"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."

This is certainly good news to all kind of investors in Reliance Power IPO.