Adani Power Share Price Jumps 19% After Stock Split – Complete Breakdown

What Triggered the Rally?

The rally was primarily driven by two factors:

1. The Stock Split – Adani Power’s decision to split shares in a 1:5 ratio lowered the face value from ₹10 to ₹2 per share. This made the stock more affordable for small investors, improving overall liquidity in the market.

2. Positive Regulatory Developments – The Securities and Exchange Board of India (SEBI) recently dismissed Hindenburg Research’s allegations of fund routing and manipulation. The regulator confirmed that related-party transactions were properly disclosed and complied with regulations. This boosted investor confidence significantly.

Breaking Down the Adani Power Stock Split

A stock split is a corporate action where a company divides its existing shares into multiple smaller shares to improve affordability and liquidity.

In Adani Power’s case:

• Split Ratio: 1:5 (1 share becomes 5 shares)

• Old Face Value: ₹10 per share

• New Face Value: ₹2 per share

• Paid-Up Shares: Expanded from 385.69 crore shares to 1,928.46 crore shares

• Authorised Shares: Recast from 248 crore (₹10 each) to 1,240 crore (₹2 each)

While the face value of each share reduces, the overall market capitalisation remains unchanged. Investors simply hold more shares at a lower price point.

Example for Investors

Suppose an investor held 100 shares at ₹700 each (₹70,000 investment). After the split, they now hold 500 shares at ₹140 each (₹70,000 investment). The total value remains the same, but shares become cheaper to buy and sell, boosting trading activity.

Stock Split vs Bonus Issue – Key Difference

It’s easy to confuse a stock split with a bonus issue, but they are fundamentally different:

• Stock Split:

  • Face value reduces

  • Number of shares increases

  • Market capitalisation remains unchanged

  • Improves liquidity

• Bonus Issue:

  • Additional shares given to investors from reserves

  • Face value remains the same

  • Increases the total number of shares without reducing face value

  • Dividends remain unaffected

In short, a split changes affordability, while a bonus issue rewards shareholders.

Adani Power’s Performance Since 2023

Adani Power has seen a remarkable turnaround in the last 18 months. After hitting lows in February 2023 during the Hindenburg-Adani controversy, the stock has surged 388%, making it the best-performing Adani Group stock in this period.

Key Drivers of Growth:

• Regulatory clarity after SEBI’s ruling in favor of Adani Group

• Expansion of generation capacity across multiple states

• Strategic acquisitions in the power and energy space

• Improved operational efficiency

• Rising power demand in India amid industrial and urban growth
  
  

Institutional Support – Morgan Stanley’s “Top Pick”

Adani Power also received a major boost from Morgan Stanley, which initiated coverage with an Overweight rating and labelled it a “Top Pick” in the Indian energy space.

According to the investment bank, Adani Power is a strong example of corporate revival in India, citing:

• Resolution of key regulatory hurdles

• Multiple value-accretive acquisitions

• Strong project pipeline with timely completions

• Rising power purchase agreements (PPAs)

• Clear trajectory for earnings growth in the medium term

This global endorsement has added to investor optimism, drawing more institutional participation.

Why the Stock Split Matters for Retail Investors

The stock split significantly lowers the entry barrier for new investors. Earlier priced above ₹700 per share, Adani Power is now trading near ₹160, making it more accessible to:

• Retail investors with smaller portfolios

• First-time investors exploring Adani Group stocks

• Short-term traders seeking liquidity

• Long-term investors looking for affordable entry levels

With increased affordability, market experts expect higher trading volumes and a wider investor base.

Market Outlook for Adani Power

The outlook for Adani Power appears strong due to:

• Rising electricity demand in India’s fast-growing economy

• Shift to clean and renewable energy, complementing Adani’s power portfolio

• Improving regulatory environment for energy players

• Strategic acquisitions strengthening long-term fundamentals

Market analysts believe the stock could continue to attract investors, especially with India’s power consumption expected to double in the next decade

Final Thoughts

The 19% surge in Adani Power shares post stock split is more than just a short-term rally. It reflects renewed investor confidence, regulatory clarity, and strong institutional backing.

By making shares more affordable, Adani Power has opened the door for greater retail participation, setting the stage for sustained growth. With demand for power rising and global investment firms endorsing its potential, Adani Power is firmly positioned as one of the most promising energy stocks in India’s market today.