Monday, February 25, 2008

Reliance Power Bonus

The Reliance Power Board has approved a bonus issue of 3:5 shares.The bonus share issue is only for non-promoters. Hence the retail investers and institutional buyers will get the bonus shares.

According to Moneycontrol, The bonus is said to reduce IPO cost to Rs 269 for retail investors, to protect dilution of REL stake in Reliance Power. REL will be compensated by making up 2.6% from Ambani's own stake.

Ambani said that his personal stake in Reliance Power has been diluted to 40% versus 45%. He added that the public will hold 15% in Reliance Power.

The date of allotment has not be decided till now but this news must cheer the shareholders of both Reliance Energy and Reliance Power. RPower invester will get bonus shares and REnergy stake will not dilute hence no value reduction of REnergy investers.


at 11:24 AM

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