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The fortnight’s burning question - Will RPL’S bonus issue put pressure on other promoters to follow suit under similar circumstances?

Print Edition: March 23, 2008

The fortnight’s burning question - Will RPL’S bonus issue put pressure on other promoters to follow suit under similar circumstances? 

No. Dinesh Thakkar, CMD, Angel Broking
There are two reasons for this. First, no other group has such a huge investor base, and secondly, no other big issue was priced at such a huge premium in recent times. However, this will definitely make promoters much more cautious about pricing their issues.

Yes. Arpit Agarwal, Director and Group CEO, Dawnay Day AV
This will certainly put pressure on other promoters under similar circumstances. Reliance has always had the reputation of looking after investors. This is a prime example of standing by this reputation, even at a significant personal loss to the promoter. It is a very significant step towards maintaining credibility in the market.

Maybe. Amitabh Chakraborty, President (Equity), Religare Securities
Overall, it is a relatively new concept (of rewarding genuine investors in this way). But one has to see whether the market mechanism finally wins over the IPO pricing process.

Compiled by Mahesh Nayak

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