Reliance Power dangles carrot, issues bonus shares

Reliance Power has now come out with its much-awaited bonus share issue after its poor listing on the Bombay Stock Exchange.
On February 11, within minutes of the Reliance Power listing, the share was beaten below the issue price of Rs 450 and more than 42 lakh retail investors saw their hard earned money going down the drain.
But in a masterstroke aimed at keeping investors happy Reliance Anil Dhirubhai Ambani Group (ADAG) Chairman Anil Ambani has now sought to give it back to them.
"The board has approved an issuance of free bonus shares in the ratio of three is to five. That means for every five shares you hold, you will receive three shares each," Anil Ambani announced
For the retail investors it means a reduction in the cost of acquisition by 40 per cent from the IPO listing price. Now, each Reliance Power share will cost 269 rupees per share.