Reliance Power Limited IPO Message Board (Page 30)

Are bonus shares free of cost or we have to pay? Please clarify

Respected sir,
anil ambani has fanilly decied to 3 bonus share at every 5 share .but what is the record date to give the bonuse shares becouse the original invester has allready book his loss so the right person to gate the bonus share is original alloty.

Maneesh kumar jain
115/174 agrawal farm
mansarover jaipur

N K Jain, let me reply you. You are type of guys who are working on behalf of those who are aganist Reliance. Please note that what has come from Anil is that he has diluted his personal stake and not even REL is effected. There are so many possibilites that can arise for any scenario and should not even think of those (your selective bonus issue).
Let me ask you what you are going to do for those companies where people have lost 50% of there investment like Porwal auto, Mansakia limited etc. Atleast anil bhai had the courage to repay the retailer back.
I am sorry i am bit blunt.

One of the first tasks before Securities and Exchange Board of India's (SEBI) brand new chairman would be to decide on the selective bonus proposed by Reliance Power Limited (RPL) to reduce the price paid by its retail investors. The company claims that it is offering "free shares" to "all the shareholders, excluding promoters who would accept dilution of their stake in the broader interest of over four million investors." That sounds wonderful and the shares shot up 7% after the announcement; but remember, the promoters paid just a fraction of the money coughed up by retail investors and are the biggest beneficiaries of the IPO. More importantly, the rather too-clever bonus proposal stretches the rulebook and probably rips it as well. It ensures a discount to retail investors with a minimal increase in capital and a substantial jump in market capitalisation. We asked a cross section of finance experts for their opinion on whether a bonus can be selectively issued to some shareholders. They included a prominent investment banker associated with the issue. Not one of them was certain it could be done; the best they could say was that RPL must have obtained legal opinion before making the announcement. Well, yes, but then the Reliance group - in fact both factions - is famous for stretching the rulebook or evolving unique interpretations of statute to suit its purpose. A former SEBI executive director is emphatic that such a bonus "vitiates the concept of equity and is like a preferential offer." Let's consider some issues raised by the announcement.

If SEBI and the Ministry of Corporate Affairs (MCA) permit a selective bonus that excludes the promoters, will it also permit the reverse where the promoters use their majority stake to award themselves a bonus and exclude retail investors or a strategic investor? Once the door is opened to a selective bonus issue for RPL, it will permit various forms of shareholder abuse.
Can RPL announce a selective bonus without even a board meeting? Is the role of the board limited to rubber-stamping the bonus ratio? More importantly, will SEBI question them?
Can RPL unilaterally decide to exclude Reliance Energy from the bonus without REL's board discussing the issue or seeking its shareholders' consent? Remember, Reliance Energy investors have already gone to court over the unilateral transfer of power generation licences to Reliance Power and the Mumbai High Court asked SEBI to look into their grievances. However, former SEBI chairman, M Damodaran brushed aside all issues and cleared the IPO.
The bonus announcement punishes those investors who sold the shares on listing by using their money to pay those who remained invested. So you have a unique situation where a company that over-priced its shares punishes those investors who prudently cut their losses and rewards those who bought the shares at a lower price after they were listed. Who were these smart buyers who got a double benefit? Can a company use the share premium account to issue a bonus within days of listing? Does this not make a mockery of the IPO price discovery process? Normally, a bonus has to be paid out of free reserves; here is a company that has not even achieved financial closure (but was still allowed to raise public money) selectively distributing the money it has collected as share premium.
The bonus has been announced to compensate investors and make amends for the high offer price and excessive hype; but can a bonus issue be a form of compensation? What are the tax implications of such a payout?
What exactly does this bonus mean for the promoters of RPL and the shareholders? The promoters invested just Rs2,000 crore, whose post-listing value had jumped to around Rs75,000 crore. On the other hand, public shareholders invested Rs12,000 crore whose value dropped to Rs7,500 crore in a matter of days. Who is being compensated?
On another note, grey market operators, who had refused to honour their commitments after RPL shares listed at a discount to the offer price, suddenly turned honourable around the time that the bonus was announced. Some say that they received crisp Rs1,000 notes in cash in lieu of the money they had earned by short-selling the shares. With the grey market having restored its credibility, the stage is set for similar operations in future IPOs, unless SEBI, under the new chairman, puts an end to this dubious activity.

How times to log in complaint......why no reply...I had applied for 225 shares....still no reply....my form no. is 4600005.....if no share has been alloted to me.........then please refund the money as possible.....

HI MR 6493. DON OF IPO

READ BELOW TEXT THEN REPLY

Expected Time Line -

If the Board approves ratio of bonus on 24th February 08, the same needs to be approved by the shareholders, in its Extraordinary General Meeting (EGM), coupled with amendments in Articles of Association for issue of bonus shares, only to non-promoters. This EGM can be held after giving 21 days clear notice, and adding about 3 days of posting and printing, it can earliest be held on 19th March. Post this, 14 days notice is required to be given to the stock exchanges, for fixing record date, to ascertain the names of shareholder, entitled to receive bonus shares, which could only be on 2nd or 3rd April 08.



Eligibility of Shareholders –

Only shareholders, holding shares on record date, would be entitled to receive bonus shares. This means, if record date has been fixed for 3rd April 08, those who are shareholders on that date, in non-promoter category, would be the only ones eligible to receive bonus shares. The original allottees, having got allotment in IPO, but have sold prior to record date, would not be eligible to receive bonus shares.

The record will be 22th Feb.2008. I am sure .

HI...Usha machiwal

You should check with Karvy local office in your region, before that check your bank account, maybe ther was some problem in your application, hence the share was not allotted & rejected. If no responses you can log a complaint with SEBI.

All the best.

Rgds... Srini

Hi ALL,
I have 2 questions
1. What is the record date decided for the bonus share ?
2. Are the shares purchased from secondary market
eligible for Bonus Shares.

Please let me know.

Thanks in advance.
Regards,
Prasad

Bhai Anil ambani ji bonus issue de diYA uska dhanyawad par share abhi tak bade investors ke nahi aye DMAT accounts ma aur karvy registrar still sleeping kuch karo

Anil Ambani-promoted Reliance Power on Sunday said it will give three bonus shares for every five shares held by its shareholders.

The board of directors at its meeting on Sunday considered and approved a bonus issue excluding promoters, as per which three shares would be allotted for every five held.

This issue would benefit over four million investors in the company and the cost would be borne by the promoter group by way of diluting its stake.

Post bonus issue, the cost of acquisition of Reliance Power shares would come down to Rs 269 for retail shareholders and Rs 281 for institutional investors.

Saying that retail investors are the bedrock and foundation of Reliance Power, its Chairman Anil Ambani said: "In these two weeks, the number of retail shareholders have actually increased. In these 10 trading days, retail investors have acquired 2.5 crore shares."

The approval of bonus issue is an unprecedented step in the history of capital market in India and abroad, he added.

Shares of Reliance Power closed down by 1.21 per cent on Friday at Rs 416.85 on the Bombay Stock Exchange.

friends,

Reliance always leaves upto its expectations....trust Dhirubhai n u fair welll...its time for complting ur shares portfolio...for those who hav been alloted 17 shares go ahead n buy 3 more to make it 20 shares so that it remains a perfect ratio for bonus...orelse u will have to wait till u get ur money on the fractional entitlement..take ur call b4 the due date....

My form no. is 13452325. I have applied for 225 shares..Ihave not received any allotment nor any refund..........I have submitted application through internet....but still no reply.....what are they doing....can u please help. Please let me know if shares are alloted under my name.......otherwise I would like a refund please. Please attend as soon as possible.

my self dheeraj kumar i have applied for reliance power ipo
i have applied for 225 shares but allotted shares were 16
application no. 71917230
cheque no. 956678 (icici bank)
dated 17/01/08
amount 25875 Rs
(1)allotted 16 shares did not get transferred in my demat a/c no.
IN301774 (religare securities ltd.patna)plz transferred for allotted shares into my demat a/c
(2)all refund amount (after adjustment) or cheque for refund amount not received till date plz send this.
(3)demat a/c no. IN301774
application no. 71917230
cheque no. 956678(icici bank)
date 17/01/08
personal add...
dheeraj kumar
c/o pankaj kumar
s/o sri prahlad singh
godawari kumhartoli
gaya 823001
bihar
ph. no. 09895926364
email-rajsobha78@yahoo.co.in
plz do needful and intimate

My appl No is 6753963 for 225 shares. I have not received allotment/refund. Karvy does not reply to emails Advise further
action.

To,
Manager,
reliance power
maharastra

sub : refend is not complite

sir
My application form no is 5 6131003 and my bid amount is 96750 which paid by chequ no DZ1872876 dated 29-01-08 by ING vysya bank. you allote me 17 share which totel value is 7310. you refund me 18565 Rs which is less 89440 in my actual refund amount. Please send my rest 89440 rs amount as soon as possible. i attach my bank statement and your refund statement

Om Prakesh Gupta
3/635 Kala Kua Housing borad
alwar (raj) 301001

I buy 20 share from mkt should I get also the bonus share ?

dear sir/madam

please my refund urgently give me .
thankyou.

The record date for the bonus shares would be fixed in consultation with stock exchanges and in compliance with provisions of the listing agreement, the firm added.

My form no. is 4600005. I have applied for 225 shares....I am yeto receive any intimation from Karvy.........I have submitted application through internet....but still no reply.....what are they doing....can u please help. Please let me know if shares are alloted under my name.......otherwise I would like a refund please. Please attend as soon as possible.