Mumbai, Feb 24 (UNI) Brokers and domestic investors feel that Anil Dhirubhai Ambani Group's bonus on Reliance Power IPO is a damage control measure since many small investors were disappointed for not getting the shares or for losing their money after the devaluation of the issue.
Brokers feel that foreign institutional investors will be the major beneficiaries as the retail investors have a very small share participation in the offering. ''Small investors are not going to be benefited that much,'' said a senior official with a leading broking company.
The Reliance Power issue, the largest IPO in the history of Indian equity market, had left investors across the country with burnt fingers initially. Many of them had endeavoured to buy the shares by taking loans from relatives and friends, he said.
ADAG Chairman Anil Ambani today annouced a bonus ratio of 3:5 to all non-promoter shareholders of Reliance Power and Reliance Energy. The IPO with 239.7 crore shares has just a small participation of 50 lakh retail investors participation and rest is with the non retail investors.
Investors pointed out that when the issue was launched, Mr Ambani had said, if possible, he would have alloted 100 per cent shares to the retail investors. But, the retail investors have not been able to secure even 30 per cent participation, they said.
Only few investors, with large number of shares, will be happy with the bonus, an investor with just a few shares said.
This was only a damage control measure after the fall in the share prices before listing, market analysts said adding that there is a lot of negative sentiment attributed to this particular stock from the listing.
UNI AR/PP MAZ AG1851