In an apparent attempt to compensate battered shareholders, Reliance Power Chairman Anil Ambani on Sunday announced that the Board has approved the issuance of bonus shares. The bonus shares will be issued to the investors in 3:5 ratio, Ambani announced. Ambani will lower his stake in the company in order to make up for the bonus shares. After this move his stake in the Reliance Power will go down to 40% from 45%.
The public stake in the company, after issuance of bonus shares will go upto, 15%. This move will protect dilution of REL stake in Reliance Power while promoters will accept dilution of their own stake. The move will also reduce cost of acquisition for shareholders.
After the issue of bonus shares the price of the Reliance Power ‘s share will go down to Rs 269 for retail investors and Rs 281 for institutional investors.
While announcing the move, Anil Ambani hinted at some foul play in the way the price of Reliance Power’s share fell to nearly Rs 380 from the listing price of Rs 540. He said the shares most likely plunged due to price hammering by an entity working against his company.
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