Reliance Power board to consider bonus issue on Sunday

Anil Ambani Group company Reliance Power's board will meet on Sunday to consider issuing a bonus issue to its shareholders, excluding the promoters. Last week, Reliance Power had said its board would meet on February 24 to consider a bonus issue, which would benefit over four million investors in the company and the cost would be borne by the promoter group by way of diluting its stake. The move follows the dismal opening of Reliance Power at the stock exchanges. The scrip, after listing at Rs 547.8, slid into red within a minute and closed at Rs 372.5, a level much below the issue price. The fabulous response for the IPO saw a demand of Rs 7,50,000 crore for the issue of Rs 11,560 crore. The board would also consider other measures that could reduce the cost of Reliance Power 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, the firm had said. Reliance Power scrip closed at Rs 416.85, down 1.21 per cent on Friday at the BSE. Besides, on Wednesday last week the company had said that it has asked its shareholders to make balance payment by February 26 on shares alloted to them in the IPO to be eligible for bonus shares. Reliance Power's IPO had offered a discount to retail investors, and an option of staggered payment to all segments. The record date for the bonus shares would be fixed in consultation with stock exchanges and in compliance with provisions of the listing agreement, the firm added.