Reliance Power plans 3:5 bonus
Anil Ambani Group has decided to reward the current shareholders with bonus shares. Reliance Power stock could not perform well during its debut in stock markets recently.
The company will offer three bonus shares for every five held by shareholders. The retail investors were very bullish about her reliance power IPO but the weakness in stock markets caused huge losses to shareholders.
Last week the company announced its plan to issue a bonus shares to compensate the losses incurred by shareholders due to fall in the stock price. The stock could not perform well on the listing day and closed at Rs. 372 against the offer price of Rs. 450. The retail investors were offered a discount of Rs. 20 per share.
After the company announced its plans to issue bonus shares to current shareholders the stock price was up by 10%. At the current market price, the shareholders are at a loss of nearly 8% to issue price.
With the allotment of bonus shares, the shareholders will get decent returns on their investments. Reliance group has a long history of offering decent gains to all the investors in the long term.