Reliance Power, a part of the Reliance ADAG group company, said it has received shareholders approval for issue of bonus shares to its shareholders, barring Anil D Ambani and other promoters.

"Shareholders through postal ballot have approved the proposals entailing that no allotment of bonus shares will be made to Anil Ambani and other promoters who waived their entitlement to such shares," Reliance Power said in a statement.

Further the shareholders have accorded their approval for issue of bonus shares in 3:5 ratio, wherein three new equity shares would be alloted for every five existing equity shares held, the company added.

The company had recommended the issue of 13.68 crore (Rs 136.8 million) bonus shares in the ratio of three new equity shares of Rs 10 each for every five existing equity shares of Rs 10 held by the shareholders of the company in the public category (excluding the promoters).

The promoters of Reliance Power are -- AAA Project Ventures Pvt Ltd, an entity fully owned and controlled by Anil Ambani and promoter of Reliance Energy Ltd [Get Quote] (REL) and REL.

Anil Ambani has gifted 6.15 crore shares of Reliance Power to Reliance Energy to ensure no dilution in holdings of Reliance Energy in Reliance Power, the statement added.

"I will protect dilution of REL shareholders from 45 per cent to 42.5 per cent at the proposed bonus shares. I will be diluting my personal shares free of cost to REL shareholders, whereby REL shareholding in Reliance Power remains intact at 45 per cent," Ambani had said on February 25.

Shares of Reliance Power reacted positively to this announcement and surged 2.66 per cent over its previous close in morning trade and witnessed an intra-day high of Rs 383.70.

The scrip was quoted at Rs 378.50, up 1.19 per cent on the BSE.