Reliance Power shareholders approve bonus issue

Reliance Power shareholders approve bonus issue
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First Published: Tue, Apr 22 2008. 12 52 PM IST
Updated: Tue, Apr 22 2008. 12 52 PM IST
PTI
New Delhi: Reliance Power, a part of the Reliance ADAG group company, has received shareholders approval for issue of bonus shares to its shareholders, barring Anil D Ambani and other promoters.
“Shareholders through postal ballot have approved the proposals entailing that no allotment of bonus shares will be made to Anil Ambani and other promoters who waived their entitlement to such shares,” the company said in a statement.
Further the shareholders have accorded their approval for issue of bonus shares in 3:5 ratio, wherein three new equity shares would be alloted for every five existing equity shares held, the company added.
Reliance Power had recommended the issue of 13.68 crore bonus shares in the ratio of three new equity shares of Rs10 each for every five existing equity shares of Rs10 held by the shareholders of the company in the public category (excluding the promoters).
Anil Ambani has gifted 6.15 crore shares of Reliance Power to Reliance Energy to ensure no dilution in holdings of Reliance Energy in Reliance Power, the statement added.
“I will protect dilution of REL shareholders from 45% to 42.5% at the proposed bonus shares. I will be diluting my personal shares free of cost to REL shareholders, whereby REL shareholding in Reliance Power remains intact at 45%,” Ambani had earlier said.
The shares reacted positively to this announcement and Relaince Power surged 2.7% over its previous close in morning trade and witnessed an intra-day high of Rs383.70.
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First Published: Tue, Apr 22 2008. 12 52 PM IST