Click to play videoMumbai: Good news for the Reliance Power investor. Anil Ambani's offer of bonus shares brought the share seven per cent up. It also helped the group recover two-third of the market value lost on listing.
Reliance Power created a flutter in the stock market when it was first announced. Everyone wanted a share of it when it was being subscribed and despite becoming the first IPO from the Reliance stables to disappoint it's investors.
The Power IPO from Anil Ambani still hogs the limelight as it makes yet another announcement - again a first.
Reliance Energy ED J P Chalsani says, “Our effort has been to keep investor confidence high."
An announcement that might come as a relief to small investors like Mansoor Umer Darvesh, who's reliance on the Ambani name almost touched an all time low if not for this move.
Darvesh said, “I'd like to personally thank Anil Ambani for this move. We are so glad. It'll buffer our losses now.”
The bonanza to investors is not completely without reason besides covering up for the bad publicity that could affect the Infratel IPO that's in the pipeline.
Post the bad listing the company was also criticised for overpricing the issue.
Analyst S P Tulsian says, “It's just an exercise to control the damage which has happened by realizing that the issue was overpriced in the first place.”
So even as this latest news would come as a relief to the fretting Reliance investors.
There still remain a few questions on how much, and by when for which, investors will have to wait for the announcements after the board meeting on the February 24.
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