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Reliance Power plans one-time measures

MUMBAI: Reliance Power Ltd said on Sunday that its Board of Directors will consider appropriate one-time measures which will result in reduction of the cost of Reliance Power shares below the IPO price.

“In keeping with the Reliance ADA Group’s fundamental and over-riding philosophy of creating value for genuine long-term investors, the Board of Directors of Reliance Power will be meeting on February 24, 2008, to consider appropriate one-time measures which will result in reduction of the cost of Reliance Power shares below the IPO price. This will include consideration of a proposal for issuing free bonus shares to all categories of shareholders, excluding the promoter group (comprising Reliance Energy Ltd and ADA Group), thereby protecting investors even from notional short-term losses on their shareholdings.” Reliance Power said.

Reliance Power’s Initial Public Offering was offered for retail investors at Rs.430 a share and institutional investors at Rs.450 a share. However on the listing day, on February 11, the share price dipped to Rs.372 a share at the close of trading. It is now traded down 11 per cent from the IPO price for retail investors, and 15 per cent for other categories of investors.

Reliance Power Ltd said: “The decline in the Reliance Power stock price has been compounded by: a vicious and orchestrated campaign of market manipulation and market abuse; unleashed by unscrupulous rival corporate interests; to hammer down all Reliance Anil Dhirubhai Ambani group stocks; in an attempt to undermine our fair name and reputation; and cause losses to millions of genuine investors.”

Reliance Power has formally written to the Securities and Exchange Board of India (SEBI), seeking an investigation into the same.

It is reliably learnt that Reliance Power named Anil Ambani’s brother, Mukesh Ambani-led Reliance Industries Ltd and its officials, in its complaint to the capital market regulator.

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