Tuesday, May 20, 2008

Bonus record date powers Reliance Power

The stock has gained 12.68% from Rs 387.50 on 25 April 2008 - the day when the company set 2 June 2008 as the record date for bonus issue.

Meanwhile the BSE Sensex was down 223.69 points or 1.26% at 17216.10, on negative cues from Asian markets. US crude closed at a record above $127 a barrel on Monday, 19 May 2009, raising concerns about its impact on consumer spending and corporate profits.

On BSE, 33.01 lakh shares were traded in the counter. The scrip had an average daily volume of 40.17 lakh shares in the past one quarter.

The stock hit a high of Rs 437.20 and a low of Rs 415.15 so far during the day. The stock had a 52-week high of Rs 599.90 on 11 February 2008 and a 52-week low of Rs 303.45 on 24 March 2008.

The scrip had outperformed the market over the past one month till 16 May 2008, gaining 8.79% compared to the Sensex`s 5.79% gain. It had also outperformed the market in the past one quarter, rising 8.46% compared to Sensex`s 3.76% fall.

The company`s current equity is Rs 2,259.82 crore. Face value per share is Rs 10.

The current price of Rs 436.65 discounts its full year ended March 2008 annualised EPS of Rs 0.42, by a PE multiple of 1039.64.

In a meeting held on 25 February 2008, Reliance Power`s board of directors approved 3:5 (3 bonus shares for every 5 shares held) bonus issue to all shareholders, excluding the promoter group comprising of Reliance Energy and the Anil Dhirubhai Ambani Group (ADAG).

In a related development, Anil Ambani, Chairman, Reliance ADAG simultaneously announced a voluntary contribution of 2.6% of his shareholding in Reliance Power to Reliance Energy, to prevent Reliance Energy from any dilution of its existing 45% stake in Reliance Power, as a result of the bonus issue.

Following bonus issue and personal stake transfer by Anil Ambani, the cost of acquisition of Reliance Power stock will come down by 40% for retail shareholders to Rs 269 per share from issue price of Rs 430 per share. In the same way, for other investors the acquisition cost will be reduced by 37% to Rs 281, from issue price of Rs 450.

Following this bonus issue, Anil Ambani`s stake will come down to 40% from the present 45%. Reliance Energy`s shareholding remains unchanged at 45% while public shareholding will increase by 5% to 15%.

Reliance Power is developing 13 power generation projects with a capacity of 28,200 megawatt (MW).

Reliance Power reported net profit of Rs 94.67 crore on total income of Rs 132.87 crore in the year ended March 2008.

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