Click to play videoNew Delhi: Reliance Power is attempting not to lose its investor confidence. It is considering giving free bonus shares to all its shareholders who suffered losses when the company had launched its initial public offering or IPO a week ago.
The move is expected to help over four million shareholders of the group. On the day of its listing, Reliance Power performed miserably at the stock exchanges. Retail investors had lost a total of over Rs 475 crore.
The company said its board would consider the free bonus shares at a meeting next Sunday, February 24, to benefit over four million of its investors and the cost would be accepted by promoter group by way of diluting its shareholding.
Informing the stock market about the proposal, Reliance Power said that the move was in keeping with the Reliance ADA Groups fundamental and over-riding philosophy of creating value for genuine long term investors and would thereby protect investors even from notional short-term losses on their shareholdings.
Elaborating, it said that from the time of opening of the Reliance power IPO on January 15, the Sensex is down 13 per cent while Reliance Power stock is down 11 per cent from the IPO price for retail investors and 15 per cent for other categories of investors.
Reliance Power demand SEBI probe in IPO blues
Meanwhile, Reliance Power has demanded a probe by market regulator SEBI into what it called was an orchestrated campaign of market manipulation by its rivals to hammer down all Reliance ADA stocks.
Blaming a vicious campaign by rival corporate interests for pulling down Reliance Power and other group firms stocks, Anil Ambani Group on Sunday demanded a probe by market regulator SEBI into market abuse that hit millions of investors.
Even before launching the IPO, the group Chairman Anil Ambani had said that it had written a complaint to SEBI but had not received any response on the same.
In its earlier complaint, Reliance Energy, a promoter company of Reliance Power, had named over a dozen top executives and associates of Mukesh Ambani headed Reliance Industries for allegedly sabotaging the IPO.
At that time, a spokesperson of RIL had said that the company had nothing to do with Reliance Power and countered the attack saying Anil Ambani group was raising this to divert attention from the corporate governance issues.
Reliance Power IPO was given a clearance by SEBI only in December, after a prolonged delay -- which sources say was due to investigation into various complaints filed with the government and other authorities against the issue.
(With PTI inputs)
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