Reliance Power Bonus Issue

#14
Its a Promoters game of chance, Be carefull guys, Just buy 2-3 Lots of Futures and till Budget and sell it off for hefty gains, If u are really a long term player then go and buy 1000 shares of relPower and forget for 3-5 Years.
 

ravalsb

Active Member
#15
I think bonus issue would not be the right word to use. Bonus is when company is increasing its capilal. Here It seems that Rpower is diluting promoters stake in the company and distributing to investors at free of cost.

Generally speaking, if promoter is diluting its stake in company, it does not seem to be +ve signal for long term (unless its private equity placement) that too at free of cost.

Again when shares are distributed by promoted at free cost...it means there is less value for the paper according to the company....

Are we missing something here......Is there anything to read between the lines here.......

Can any one share views on this???

Thanks & Regards
 
#16
I think bonus issue would not be the right word to use. Bonus is when company is increasing its capilal. Here It seems that Rpower is diluting promoters stake in the company and distributing to investors at free of cost.

Generally speaking, if promoter is diluting its stake in company, it does not seem to be +ve signal for long term (unless its private equity placement) that too at free of cost.

Again when shares are distributed by promoted at free cost...it means there is less value for the paper according to the company....

Are we missing something here......Is there anything to read between the lines here.......

Can any one share views on this???

Thanks & Regards
One point which I clearly see is-- AA has to get the investors confidence back quickly if he really want to float his infratel IPO and get it done successfully .
 

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