Reliance Power Bonus Shares Issue: 3 Bonus Shares for Every 5 Held

As Reliance Power Board announced to give free bonus shares to all it’s shareholders to compensate the losses everyone has suffered when the company was listed and was down by 32%. 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 our updated before on Reliance power bonus shares, Anil Ambani promoted Reliance Power declared a bonus share ratio for this bonus issue. The investors would cut down their losses by as much as 40% over the IPO price after the company announced the bonus issue on Sunday.

The board of directors at its meeting considered and approved a bonus issue, excluding promoters, wherein three shares would be allotted for every five held by the non-promoter shareholders.

“This move would effectively reduce the cost of Reliance Power shares from the IPO price,” Reliance Power Chairman Anil Ambani said.

Reliance Power has informed that the Register of Members & Share Transfer Books of the Company will remain closed from June 03, 2008 to June 05, 2008 for the purpose of Issue and allotment of Bonus shares.

All shareholders of the Company's records hold shares as at the end of business hours on June 02, 2008, irrespective of whether such shares were subscribed by the shareholders in the Company's Initial Public Offering (IPO) or such shares were purchased from the secondary market or otherwise after the IPO, shall be eligible to receive the bonus Shares.

Here are few questions answered for you people:

What will be the new value of IPO shares for retail investors?

The new IPO shares price for retail investors would be Rs 269

Whom these Reliance Power bonus shares are allotted to?

These shares will be allotted to every shareholder who has the shares on record date.

Keywords: Reliance, Reliance IPO, Reliance Power Ltd, Anil Ambani, Initial Public Offer (IPO)