Reliance Power Plans to Offer Bonus Shares

Anil Ambani- headed Reliance Power Ltd said on Sunday that it has planed to offer bonus shares to all its shareholders, excluding the promoter group. This is the first time an Indian company has proposed bonus shares barely a week after listing on the stock exchanges.

The decision taken after the share doesn't do well in the bearish BSE and NSE, most of the traders expected R-power share will turnaround the market to bullish. But, unfortunately it doesn't happen, and the share price fall considerably against listed price. On Friday, the shares closed at Rs 384.70 on the Bombay Stock Exchange.

The decision of issuing bonus share is really good news to the R-power shareholders and we can expect this will create a positive breath in the Indian Stock Market.

Reliance Power IPO - Numbers are really big

The much awaited Anil Ambani Group firm Reliance Power IPO will be list the shares on the Bombay Stock Exchange and National Stock Exchange on February 11.

This IPO has raised Rs 11,560 crore (Rs 115.6 billion), and it is the largest IPO on the Indian capital market,the number of shareholders involved in this IPO is about 42 lakhs. ADAG's power IPO has receieved over 5million bids from all the categories, and the demand of shares worth over Rs. 7.5 trillion.

Here are the excerpts of some big numbers involved in this IPO,

Qualified Institutional Buyers was oversubscribed - 82.5 times.

Non Institutional Investors was oversubscribed -159 times.

Retail investors was oversubscribed -13.6 times.

In the beginning, Reliance Power IPO has faced the PIL(Public Interest Litigation) filed by a Rajkot-based NGO, Grahak Suraksha Mandal in the Gujarat High Court. But, The Supreme Court cleared the hurdles for the launch of this mega Initial Public Offer by ADA group.

Let's hope that this IPO will do some magic in the Indian Stock Market.