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Introduction
Adani Power, one of India’s largest private power producers and a flagship company of the Adani Group, has announced its first-ever stock split in corporate history. The move comes at a time when the company is expanding its power generation capacity and strengthening its position in India’s energy sector. The stock split, approved by shareholders in September 2025, is seen as a significant step to enhance retail participation and improve liquidity.
Key Highlights of Adani Power Stock Split
- Ratio of Stock Split: 1:5 (one equity share of face value ₹10 will be split into five equity shares of face value ₹2 each).
- Record Date: September 22, 2025 – shareholders holding shares on this date will automatically receive additional shares.
- First-Ever Split: This marks the first stock split or bonus issue in Adani Power’s history.
- Share Capital Change: The number of outstanding shares will rise from 2,480 crore to 12,400 crore, while the company’s total market capitalization will remain unchanged.
Why is Adani Power Splitting Its Stock?
- Enhancing Affordability – The stock price will adjust downward after the split, making shares more affordable for small and retail investors.
- Boosting Liquidity – With more shares in circulation, trading volumes are expected to rise, improving liquidity on the stock exchanges.
- Encouraging Retail Participation – Adani Power aims to widen its shareholder base by making the stock more accessible.
- Positive Market Sentiment – Stock splits are often viewed positively by the market as they indicate management’s confidence in future growth.
Impact on Investors
- No Change in Investment Value: The split only changes the number of shares, not the overall value. For example, if an investor holds 100 shares priced at ₹5,000 each (total ₹5,00,000), post-split they will hold 500 shares priced at around ₹1,000 each—value remains ₹5,00,000.
- Easier Entry for New Investors: Lower share price makes it psychologically easier for new entrants to buy.
- Potential Liquidity Premium: Increased trading activity may reduce volatility and attract more institutional interest.
Stock Market Reaction
When the board first approved the stock split on August 1, 2025, Adani Power’s stock rose nearly 2% intraday. Analysts noted that despite the company reporting a 15.5% year-on-year decline in Q1 net profit, investor sentiment remained positive due to the stock split announcement.
The move is expected to improve visibility for Adani Power at a time when the group is expanding capacity and reducing debt, which could drive long-term value creation.
Adani Power’s Recent Financial Performance
- Q1 FY26 Net Profit: Declined by 15.5% YoY due to higher input costs.
- Revenue Trends: Strong domestic demand for power has supported steady revenue growth.
- Capacity Expansion: The company continues to expand its installed capacity, targeting both thermal and renewable segments.
Comparison with Peers
Stock splits are a common corporate action among Indian companies. In 2025 alone, several large-cap firms such as Infosys, ICICI Bank, and Power Grid have also announced splits or bonuses. Adani Power’s move aligns with this broader trend of enhancing stock market accessibility for retail investors.
Astute Investor Outlook
- Short-Term: Increased interest and retail participation may support near-term stock momentum.
- Medium-Term: Liquidity benefits and improved sentiment could keep the stock attractive to both institutional and retail investors.
- Long-Term: Performance will ultimately depend on profitability, capacity additions, coal price stability, and the company’s transition towards renewables.
Important Dates to Remember
| Event | Date |
|---|---|
| Board Approval | August 1, 2025 |
| Shareholder Approval | September 5, 2025 |
| Record Date | September 22, 2025 |
| Effective Split | After market hours on record date |
Conclusion
The Adani Power stock split (1:5) is a landmark event for the company and its shareholders. While it does not change the company’s fundamentals, it significantly improves affordability, liquidity, and accessibility, paving the way for greater retail participation. As India’s power demand continues to rise, Adani Power is positioning itself to benefit from both market confidence and sectoral growth.
For investors, this stock split is an opportunity to watch closely—while the value per share will reduce, the long-term growth potential of the company remains intact.