Adani Power’s stock split in 1:5 ratio takes effect today, September 22, and the share price of Adani Power is buzzing in trade. The Adani Group stocks have been in focus on the back of the SEBI clean chit last week and let’s take a look at what the stock split means for the investors at the moment.
Here are 5 key factors that investors need to know about Adani Power’s stock split and what it means –
Adani Power stock split: First-ever stock split
This is a key moment for Adani Power. The company has never split its stock before. Earlier this month, shareholders approved the plan through a postal ballot.
According to the 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.”
Adani Power stock split: How the share price will adjust
With the 1:5 split, each share of face value Rs 10 is now divided into five shares of Rs 2 each.
Theoretically, Friday’s closing price of Rs 709.05 will adjust to Rs 141.81 from today. While the value of each share drops, investors will hold five shares instead of one, leaving their total investment value unchanged.
Adani Power stock split: Big jump in number of shares
The split will increase the company’s outstanding shares. Adani Power’s 385.69 crore equity shares will now expand to over 1,928 crore shares with the reduced face value.
Similarly, the company’s authorised share capital will also be adjusted.
Adani Power stock split vs bonus issue
Many investors confuse stock splits with bonus shares. The key difference is –
In a stock split, existing shares are simply divided into smaller units. Dividend entitlement shrinks in proportion, but reserves remain the same.
In a bonus issue, the company gives free additional shares out of accumulated earnings, while the face value of each share remains unchanged.
Morgan Stanley backs Adani Power as a top pick
Morgan Stanley has reaffirmed its confidence in Adani Power, calling it its “Top Pick” in the utilities space with an Overweight rating and a target price of Rs 818. This implies nearly 30% upside from current levels. The brokerage sees Adani Power as part of one of India’s biggest turnaround stories, citing progress on regulatory issues and value added through acquisitions. As Morgan Stanley report noted, “APL is a good illustration of turnaround in India’s corporate history, with resolution on most regulatory issues & multiple value-accretive acquisitions.”