The ADAG board which met on Feb 24th approved the bonus issue of shares in the ratio 3:5 or 3 shares for every 5 held.This is surely going to reduce the prices at which investors bought the shares in the IPO and there will be certainly reasons to cheer about now.The IPO cost for retail shares would now stand at Rs 269 and Rs 281 for other investors.So the cost has come down by almost 40%.

The bonus is issued to all the share holders except the promoters group.The Reliance Power got listed in the markets on Feb 11th at Rs 430 and was down by 21% on the same day.Since then it has not closed above the issue price of Rs 450.It is very unnatural for a company to issue bonus shares but the company was committed for it.

After the announcement of the issue of bonus shares the script has already risen about 8% and is expected to do well in coming days if the markets finally settles down.

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