Adani Power Announces Stock Split For First Time Ever: What Does It Mean For Investors?

Last Updated:August 01, 2025, 14:14 IST

Adani Power Stock Split: Its board okays the split in the ratio of 1:5, meaning each existing equity share with a face value of Rs 10 will be split into five shares of Rs 2 each.

Adani Power Share Price: Adani Power on Friday, August 1, announced its first-ever stock split, a move aimed at making its shares more affordable and enhancing investor participation. The company’s board of directors approved the split in the ratio of 1:5, meaning each existing equity share with a face value of Rs 10 will be split into five shares of Rs 2 each.

Shares of Adani Power were trading at Rs 578.25 apiece on the NSE as of 2:13 pm, which is 1.73% lower than the previous close.

In its regulatory filing, Adani Power stated the decision was taken to “enhance the liquidity of company’s equity shares by encouraging participation of retail investors as the split will make the shares more affordable to invest.”

The record date for determining shareholder eligibility to receive the split shares is yet to be announced. Investors holding the shares on that date will be entitled to the benefit.

To illustrate, if a shareholder currently owns 10 shares worth Rs 100 each, after the stock split, they will hold 50 shares worth Rs 20 each. The total value of the investment — Rs 1,000 in this case — remains unchanged.

Stock splits increase the number of outstanding shares without altering a company’s market capitalisation. While this doesn’t change the fundamental value of a company, it often improves liquidity and can attract more retail participation, potentially boosting the stock’s performance over time.

The stock has been relatively resilient in 2025, gaining nearly 10% so far this year. It is also up over 15% in the past six months, although it has dipped around 2% over the last month. Its P/E ratio currently stands at 17.79.

Alongside the stock split announcement, Adani Power also reported its Q1 FY26 earnings, showing a 13.5% year-on-year decline in net profit to Rs 3,384 crore, while revenue from operations dropped 6% to Rs 14,109 crore.

Adani Power on Friday reported a 15.5% fall in first-quarter profit, as early monsoon dampened power demand. The thermal power producer, part of Gautam Adani-led Adani Group, said its consolidated net profit fell to Rs 3,305 crore in the quarter ended June 30 from Rs 3,913 crore a year earlier.

Its revenue from operations, entirely from power generation and related activities, fell 5.7% to Rs 14,109 crore.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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