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Reliance Power board considering free bonus shares
New Delhi (PTI): In an unprecedented move,Anil Ambani Groupcompany Reliance Power will give free bonus shares to all its shareholders to compensate the losses they suffered when the company was listed a week ago.
"Reliance Power board will consider issuing free bonus shares to all shareholders excluding the promoters," a group spokesperson said.
On the day of its listing at Rs 547.8 a share, Reliance Power performed miserably at the stock exchanges and closed the day nearly 32 per cent lower.
The IPO had attracted a total demand of about Rs 7,50,000 crore and the company had issued the shares at Rs 450 while giving a discount Rs 20 a share to retail investors.
In the face of previous disappointment among investors, group chairman Anil Ambani is believed to have taken this unique step to win over the investors and give a message that in an Ambani company shareholders would not lose.
"The move by the Reliance Power board will reduce the cost of acquisition by shareholders who had helped the company mop up Rs 11,560 crore through IPO," the spokesperson said, adding that the promoter group would accept the dilution of their stake due to the issuance of free bonus shares.
The move would help over four million shareholders of the group, the spokesperson said. Prior to over 10 per cent equity dilution in Reliance Power through IPO, Anil Ambani and his group company Reliance Energy were the equal stake holders.
On the day of the listing, retail investors had lost a total of over Rs 475 crore, while FIIs suffered over Rs 800 crore.
A board meeting of Reliance Power would be held next Sunday, February 24, to consider issuance of free bonus shares, the company informed the stock exchanges today.
"From the time of opening of initial public offer of Reliance Power on January 15, the Sensex was down 13 per cent while the Reliance Power stock was down 11 per cent from the IPO price for retail investors, and 15 per cent for other categories of investors," the company said in a statement.
The company said that the decline in share price has been compounded by "a vicious and orchestrated campaign of market manipulation and market abuse unleashed by rival corporate interests," it said.
The campaign was to hammer down all Reliance ADA group stocks in an attempt to undermine its fair name and reputation and cause losses to millions of genuine investors, the statement added.
Reliance Power has formally written to market regulator SEBI seeking an investigation into the same.
New Delhi (PTI): In an unprecedented move,Anil Ambani Groupcompany Reliance Power will give free bonus shares to all its shareholders to compensate the losses they suffered when the company was listed a week ago.
"Reliance Power board will consider issuing free bonus shares to all shareholders excluding the promoters," a group spokesperson said.
On the day of its listing at Rs 547.8 a share, Reliance Power performed miserably at the stock exchanges and closed the day nearly 32 per cent lower.
The IPO had attracted a total demand of about Rs 7,50,000 crore and the company had issued the shares at Rs 450 while giving a discount Rs 20 a share to retail investors.
In the face of previous disappointment among investors, group chairman Anil Ambani is believed to have taken this unique step to win over the investors and give a message that in an Ambani company shareholders would not lose.
"The move by the Reliance Power board will reduce the cost of acquisition by shareholders who had helped the company mop up Rs 11,560 crore through IPO," the spokesperson said, adding that the promoter group would accept the dilution of their stake due to the issuance of free bonus shares.
The move would help over four million shareholders of the group, the spokesperson said. Prior to over 10 per cent equity dilution in Reliance Power through IPO, Anil Ambani and his group company Reliance Energy were the equal stake holders.
On the day of the listing, retail investors had lost a total of over Rs 475 crore, while FIIs suffered over Rs 800 crore.
A board meeting of Reliance Power would be held next Sunday, February 24, to consider issuance of free bonus shares, the company informed the stock exchanges today.
"From the time of opening of initial public offer of Reliance Power on January 15, the Sensex was down 13 per cent while the Reliance Power stock was down 11 per cent from the IPO price for retail investors, and 15 per cent for other categories of investors," the company said in a statement.
The company said that the decline in share price has been compounded by "a vicious and orchestrated campaign of market manipulation and market abuse unleashed by rival corporate interests," it said.
The campaign was to hammer down all Reliance ADA group stocks in an attempt to undermine its fair name and reputation and cause losses to millions of genuine investors, the statement added.
Reliance Power has formally written to market regulator SEBI seeking an investigation into the same.
posted by Anupam @ 9:41 PM
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