What is going on ? The markets have fallen almost 5000 Points over the last month. And now this: Ambani has announced a bonus. Firstly, he is not infusing capital into his company, Nor is he generating more wealth, he is just doling out freebies to the people who have bought into REPL. Inturn what will happen? NOTHING. Price of the scrip will fall, which means the net amount (value) of the share will remain same. Will it help in the long run? Probably, but the basic thing is, you are increasing supply into already rich (which supply) market, there is dwindling demand. If this move is not an artificial way of increasing the price of his share, what is ?
REPL was a classic case of much ado about nothing. We have paid for a company which exists on paper.
By the way whose stake is he going to dilute? His own or will it be REL? If its his own, why? secondly why isnt the Record date announced ? if REL's stake is reduced, even REL's balance sheet will be going for a toss.
My tiny brain fails to comprehend any of this.
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