The stock witnessed a highly volatile session due to confusion over the price adjustment. It opened at Rs 308 and slid to a low of Rs 231.
Deven Choksey, however, said the price decline amounted to marginal fall of Rs 2 as the promoters did not receive the 3:5 bonus.
"The stock price of Rs 234 was the best possible trading price," he said.
The shares of the company were hovering between Rs 250 and Rs 270 before the bonus announcement in March this year. They shot up to Rs 410 thereafter, based on the estimated price after the bonus issue.
"Had the price not moved up before the record date, the share would have plunged even more after the bonus. If the price goes up before bonus, it will be adjusted after the bonus," said a broker.
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For the retail inavestors who bought at the IPO price of Rs 430, the average price after bonus would have been around Rs 270 a share.
However, the stock is down around 8 per cent from its IPO price. The retail investors who could not exit above Rs 270 have ended up losing over 20 per cent. A mere 10,000 shares were traded above Rs 300 during the day.
Bloomberg adds: Reliance Power, which got a record Rs 7,560 crore worth of bids in the IPO, declined after listing in February amid a global sell-off in equities.
A drop in the group's shares led Reliance Infrastructure, formerly Reliance Energy, to announce a buyback of shares.
Reliance Power will give investors three shares for every five held, Chairman Anil Ambani said on February 24.
Ambani and the founder group, which hold a combined 90 per cent stake in the company, won't get the free shares.
The cost of acquiring Reliance Power shares will be Rs 269 for individual investors, 40 per cent lower than the IPO price of Rs 430, Ambani said. For large shareholders, which paid Rs 450 a share, the rate will fall to Rs 281 a share.
The company set May 30 as the ex-date, the first day on which a security is traded without entitling buyers to receive previously announced benefits. Investors holding Reliance Power stock at the end of trading on June 2 will be given the bonus shares, the company said in a statement to the Bombay Stock Exchange on May 5.