Reliance Power Bonus Shares Offer - u get 3 for every 5 u have

In a bid to reduce losses to shareholders after a dismal listing at India's stock exchanges, Anil Ambani-promoted Reliance Power Ltd Sunday announced issue of bonus shares in the ratio 3:5, which means that the company will issue three free shares for every five shares held.

However, RPL said no bonus shares were issued to the promoters of the company. After the bonus issue, the effective cost of a share to retail investors has dropped to Rs.269 against the retail issue price of Rs.430.

For institutional investors, the corresponding figure is Rs.281 against the issue price of Rs.450 Shares of RPL closed at Rs.416.85 at the close of trading Friday on the Bombay Stock Exchange (BSE). Despite drawing record subscriptions during it initial public offering (IPO), the first day of listing Feb 11 on BSE saw the Reliance scrip close at Rs.372, a huge decline over the issue price of Rs.450, after listing at Rs.547 at the bourse. This had created huge resentment and disappointment among investors, who had overwhelmingly subscribed to the IPO, as many of them expected the scrip to debut higher at around Rs.750-850 a share.

The IPO had attracted more than five million bids from all categories of domestic and international investors with aggregate commitment of over Rs.7.5 trillion ($189 billion) against the issue size of Rs.115.60 billion ($2.91 billion).

Reliance Power is currently developing 12 power projects in the country with a total planned installed capacity of 28,000 MW. This is among the largest portfolios of power generation assets under development.

Future Capital IPO price set at Rs.765

Future Capital Holdings Ltd said on Thursday it has set a price of 765 rupees a share for its initial public offer (IPO).

Future Capital will raise around 4.91 billion rupees by selling 6.4 million shares.

Future capital is the financial services arm of the diversified Future Group, which promotes top retailer Pantaloon Retail India Ltd.

Future Capital IPO oversubscribed 132 times.

Post IPO, the equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

CARE signs MOU with Corporation Bank

Promoted by Banks and Financial Institutions, CARE is engaged in providing credit rating, financial and advisory services to various entities in the corporate and financial sectors in India.

Credit Analysis & REsearch Limited (CARE), a premier credit rating agency, signed a Memorandum of Understanding (MoU) with Corporation Bank.

Promoted by Banks and Financial Institutions, CARE is engaged in providing credit rating, financial and advisory services to various entities in the corporate and financial sectors in India.

Corporation Bank is a Public Sector Bank and offers financial services which are of great value to its customers.

This MoU will enable Corporation Bank in ensuring compliance with the guidelines of the New Capital Adequacy Framework (Basel-II) announced by Reserve Bank of India. Under these guidelines, the capital requirement for a corporate exposure is based on the credit rating assigned by the recognized rating agencies such as CARE.

As per the MoU, Corporation Bank may advise its clients to approach CARE for getting their facilities with the Bank rated. The clients of the bank will benefit from the rating exercise at a discounted rate. All these ratings will be carried out after obtaining mandates from the Bank’s clients/prospective clients.

Corporation Bank will be benefited with the objective and independent assessment of borrower’s credit quality. Further, the sharing of CARE’s analytical insights on various industries and evolving economic environment will help the bank in strategizing its lending decisions.

The customers of Corporation Bank classified as Small Scale Industries (SSI) will benefit from “NSIC–CARE Performance and Credit Rating” at a subsidised fee. This rating product, offered under the Performance and Credit Rating Scheme for SSIs adopted by the Ministry of Small Scale Industries of the Government of India is meant especially for the sector.

Also under the terms of the MOU, the rating requirements of Corporation Bank’s small and medium size customers that are not classified / registered as an SSI unit will be addressed under “CARE SME Rating”.

Source: (IndiaPRwire.com)