Sunday, February 17, 2008

Reliance Power Bonus Share Issue

The issue of bonus shares is nothing but a gimmick. Bonus is given on fundamentals not on emotion. Free bonus shares ultimately increse the number of share without increasing net worth of the company and hence will decrease the market price of the share further. What kind of compensation is this for is not a fair practice for company coming with ipo higher price than realising mistakes and to improve image for future issues giving bonus to eye wash investors and capital market.

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