The Reliance Power Board has approved a bonus issue of 3:5 shares, which essentially means that the company will issue 3 shares for every 5 held. Chairman, Anil Ambani says that the bonus share issue is only for non-promoters.
The company says that the number of retail shareholders have increased in the last 10 days. The bonus is said to reduce IPO cost to Rs 269 for retail , to protect dilution of REL stake in Reliance Power. REL will be compensated by making up 2.6% from Ambani's own stake.
Ambani said that his personal stake in Reliance Power has been diluted to 40% versus 45%. He added that the public will hold 15% in Reliance Power.