After meeting with unprecedented losses, the Reliance Power promoted by Anil Ambani has initiated a major step in damage control by deciding to consider issuance of BONUS SHARES to all categories of investors, excluding the Promoter’s group. For this purpose, the Company has convened a meeting of its Board of Directors to be held on 24th Feb,008.
It may be recalled that the Company’s initial public offer of Rs.450/- a share with a dsicount of Rs.20/- to the retail investors received a record breaking subscription of over Rs.7,50,000 /-Crores from nearly 500 institutional investors and over five million retail investors. But when the share was listed in the Copuntry’s bourses on 11th Feb,008, it was beaten to the core with prices dipping to Rs.372/- a share. There was a marginal recovery in its prices during subsequent trading.
With a view to set right this anamoly, the Management has decided to consider the issuance of BONUS SHARES. The objective of such an exercise is to reduce the COST of the SHARE and create value to its long term genuine investors which is in consonance with the philosophy of the ADA Group.
Adding that the decline in the prices did not have to do anything with the intrinsinc value of the share, a spokesman for the group said:’the declube ub tge Reliance Power Stock Price has been compounded by a vicious and orchestered campaign of market manipulation and market abuse;unleashed by unscruplous rival Corporate interests;to hammer down all Reliance Dhirubai Ambani Group stocks;in an attempt to undermine our fair name and reputation and cause losses to millions of investors’.
Subsequent to this announcement, there was a recovery in the Pirces with an increase of about Rs.35/- a Share when the markets opened today the 18th Feb 008.
In an interesting development, it is reliably learnt, Reliance Power has named Mr.Mukesh Ambani led group, Reliance Industries Ltd and its officials as perpetuators of these exercises in their letter to the Securities and Exchange Board of India (SEBI), seeking a probe.