Adani Power’s First-Ever Stock Split Takes Effect: What Investors Need to Know

Adani Power Ltd has officially initiated its much-anticipated 1:5 stock split, effective today, September 22, 2025. The buzz surrounding this event comes on the heels of a regulatory clean chit from SEBI, further energizing investor interest in Adani Group stocks. Here’s a breakdown of what this stock split means for shareholders and why it marks a historic milestone for the company.

A Milestone Move: Adani Power’s Maiden Stock Split

In a first for the energy giant, Adani Power has never before split its shares. This decision reflects the company’s commitment to enhancing shareholder value and improving stock market accessibility. The stock split was greenlit earlier this month through shareholder approval via a postal ballot.

According to the company’s regulatory filing:

“The Company has fixed Monday, September 22, 2025 as the Record Date for the purpose of determining the eligibility of shareholders for sub-division / split of existing 1 (one) Equity Share of face value of Rs. 10/- each fully paid up into 5 (five) Equity Shares of face value of Rs. 2/- each fully paid up.”

Adjusted Share Price: No Change in Value, Just More Shares

With the 1:5 stock split in effect, each existing equity share with a face value of ₹10 is now divided into five shares of ₹2 each.

While the face value and individual share price decrease, the overall investment value for shareholders remains unchanged. Based on the closing price of ₹709.05 last Friday, the post-split price per share is expected to hover around ₹141.81, assuming no market-driven changes.

Surge in Outstanding Shares: A Larger Share Base

As a result of the split, Adani Power’s total number of equity shares will dramatically increase from 385.69 crore to more than 1,928 crore shares.

The company’s authorized share capital will also be adjusted accordingly to accommodate the higher volume of lower denomination shares, enhancing liquidity and potentially increasing investor participation.

Stock Split vs Bonus Shares: Understanding the Difference

Many retail investors often mistake stock splits for bonus issues. However, these are fundamentally different:

• In a stock split, existing shares are divided into smaller units, making them more affordable without altering the company’s reserves.
• In a bonus issue, companies distribute additional shares to shareholders from accumulated profits, while maintaining the original face value of the shares.

In short, a stock split enhances affordability; a bonus issue rewards loyalty from past profits.

Strong Institutional Backing: Morgan Stanley Reiterates ‘Top Pick’ Status

Adding to the positive sentiment, Morgan Stanley has reaffirmed Adani Power as its “Top Pick” in the utilities sector. The global investment firm has maintained an Overweight rating with a bullish target price of ₹818, implying a potential upside of nearly 30% from current levels.

Morgan Stanley’s analysis emphasizes Adani Power’s remarkable transformation, highlighting progress on regulatory resolutions and strategic acquisitions. As stated in their report:

“APL is a good illustration of turnaround in India’s corporate history, with resolution on most regulatory issues & multiple value-accretive acquisitions.”

About the Author

Sorit Chaudhary

Author

View All Posts