Reliance Power to issue Bonus shares

Power (R-Power), which raised over Rs 12,000 crore (Rs 120 billion) in India's biggest initial public offering in January, will consider issuing bonus shares to its shareholders, excluding the promoter group. Its board is scheduled to meet on Feb. 24 to consider issuing bonus shares and/or other measures which it said would effectively reduce the cost of the company's shares.

Reliance Power may trade between Rs 415 and Rs 425 before the bonus is announced, says SP Tulsian, Investment Advisor, on CNBC-TV18. And the ex-bonus price could be Rs 300-330, he adds. Anil Ambani yesterday announced that Reliance Power investors will receive free bonus shares to compensate them for sharp falls in its stock price.