Rel Power asks shareholders to make balance payment | business | Hindustan Times
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Rel Power asks shareholders to make balance payment

business Updated: Feb 20, 2008 12:19 IST
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Anil Ambani Group company Reliance Power on Wednesday said it has asked shareholders to make balance payment by February 26 on shares alloted to them in the IPO to be eligible for bonus shares.

"The balance amount was due on allotment and a notice for the same has been sent to shareholders to make the balance payment on or before February 26," Reliance Power said in a filing to the Bombay Stock Exchange.

By issuing the notice, the company has complied with SEBI guidelines, and all shares have been made fully paid up, Reliance Power added.

Reliance Power's IPO had offered a discount to retail investors, and an option of staggered payment to all segments.

Qualified institutional buyers were allowed to pay only 10 per cent initially, while high net worth individuals and retail investors were permitted to pay only 25 per cent of the total cost as initial payment. The remaining amount was to be paid after allotment of shares.

On February 17, the company had announced it was planning a bonus issue to all shareholders, except promoters, in a bid to compensate them for the losses they suffered on the day of listing of the scrip. The Reliance Power Board is scheduled to meet on February 24 to consider the issue.

According to the filing, in those cases where the balance amount remains unpaid after the stipulated date, "Reliance Power would keep the bonus shares in abeyance and the same shall be given to the respective holders upon receipt of call money".

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

Shares of Reliance Power were trading at Rs 408.50, down 1.16 per cent, on BSE in the morning trade.