Reliance Power announces 5:3 bonus

Mr Anil Ambani, the Chairman of Reliance Power had declared bonuse of 3 shares for holder of 5 shares . i.e 5:3.that means if you have 5 reliance power shares, you will get three shares free of cost. now you will have 8 shares in total and your average cost of 8 shares will become Rs.281.25. It will cost Rs 269 per share for retail investors, 40 per cent lower than the IPO price of Rs 430, and Rs 281 per share for institutional investors, 37 per cent lower than the IPO price of Rs 450. The company last traded at the National Stock Exchange (NSE) at Rs 417.15 on Friday.

Reliance power will announce record date later. After bonus shares public shareholding will increase from 10% to 15%. Reliance energy will also get reliance power bonus shares.

Ambani said his shareholding in Reliance Power would be reduced by 5 percentage points to 40 per cent from 45 per cent, representing a contribution of nearly Rs 5,000 crore in favour of 6 million investors of REL and Reliance Power. With today’s move, REL will continue to hold 45 per cent in Reliance Power while the public holding will increase to 15 per cent from 10 per cent.

Cost per share for retail investors to decline to Rs 269

• Anil Ambani’s stake to fall from 45% to 40%

• Reliance Energy stake in RPower to remain at 45%

• Anil Ambani to transfer 2.6% of personal stake to REL

• Public holding to rise from 10% to 15%