Adani Power Board to Consider Stock Split on Friday; Shares Rise 3.5%
Adani Power is making headlines again. This time, it’s because the company’s board is planning a big move, a stock split. The meeting is set for Friday, and the news has already made an impact. The stock jumped 3.5% soon after the announcement.
But what does that mean for investors? Or even as market watchers?
Let’s break it down. A stock split doesn’t change the company’s value. But it can make each share cheaper and more attractive, especially for small investors. It’s a common move big companies use to increase demand for their shares.
Let’s explore what a stock split is, why Adani Power might be doing this now, and how it could affect the stock price in the short and long term.
What is a Stock Split?
A stock split means a company increases the number of its shares while lowering the face value of each. Adani Power currently has ₹10 shares. If the board approves a split, each ₹10 share could become multiple smaller shares, like ₹2 or ₹5 pieces. The total value stays the same. A split does not change the company’s worth. But it does make shares cheaper. That can attract more retail buyers.
Adani Power: Company Snapshot
Adani Power is part of the Adani Group. It is based in Ahmedabad, Gujarat, and runs thermal power plants, adding up to over 15,250 MW. It also has a solar project of 40 MW in Kutch. The company has power supply deals with states like Gujarat, Maharashtra, Haryana, Rajasthan, Karnataka, and Punjab.
Its board will meet on August 1, 2025, to consider this proposed split. In the final quarter of FY25, Adani Power posted a net profit of ₹ 2,599 crore, down slightly from ₹ 2,737 crore a year ago. Its revenue rose 5-6% to around ₹ 14,145 crore. For the full financial year FY25, net profit dropped nearly 39% to ₹ 12,750 crore, while revenue grew about 10% to ₹ 54,503 crore.
The Announcement: What We Know
On July 29, 2025, Adani Power filed a disclosure. It said the board would consider a share capital change via a split. This would subdivide ₹10 equity into smaller parts. The actual ratio is still to be decided by the board during the August 1 meeting. Any approval would need shareholders’ and regulators’ consent.
After the news, shares climbed. They rose by 2.23% at ₹583.30 on BSE, then more during trading, up over 3.3% and reaching ₹590‑₹594 on NSE.
Market Reaction and Analyst Insights
Investors reacted quickly. The shares rose about 3-4% within hours of the news. The move felt like a vote of confidence. Lower per‑share cost can attract more buyers. That helps both demand and liquidity.
Some analysts pointed out that Adani Power’s RSI signals are mixed. Support lies around ₹566, and resistance lies near ₹585. A break above the latter could invite more buyers; a drop below support might push the stock down.
Historical Precedents: Stock Splits in India
In recent years, several Indian companies have split their shares. Firms like Tata Motors and Infosys did floating splits to lower the entry price. Most saw an uptick in retail investor action. Liquidity usually rose in the weeks that followed. Patterns showed small investors bought more after split announcements.
Such moves often send shares higher in the short term. But long‑term gains depend on fundamentals.
Strategic Reasons Behind This Move
We think there are clear motives here. By lowering the share price, Adani Power can attract retail investors. That broadens its shareholder base. Better liquidity also means tighter bid‑ask spreads. Adani Power may also use this split to enhance visibility ahead of future funds or projects. The timing fits with Adani Group’s push into renewables and growth.
What does this mean for Investors?
Investors should weigh the pros and cons. A lower share price may make buying easier. But more shares also mean more volatility. If the split is approved, retail interest may rise. Yet foreign institutional investors remain cautious post‑Hindenburg allegations.
We should watch support levels around ₹566 and resistance near ₹585‑₹590. A break above those could shape future entry or exit points. Until the board confirms the ratio and dates, caution is wise.
Expert Opinion / Market Voices
While no direct quotes are available yet, commentators say the move is classic. It signals confidence and a desire to engage retail investors. Many see this as Adani Power’s way to reset momentum after a tough year. If the split goes through and technical levels hold, many experts say it might be a good entry for keen long‑term investors.
Wrap Up
We see the proposed stock split as a strategic and timely decision. It could make Adani Power shares more accessible. It may also fuel trading activity and boost liquidity. The board meets on August 1, 2025, to decide the details of the split ratio. We must wait for the official outcome. Until then, we stay alert. If approved and key technical levels are broken, it could open a chance for new investors. But you should focus on the company’s fundamentals, not just the headline.
Frequently Asked Questions (FAQs)
A 1.5 share split means that for every 1 share you own, you will get 1.5 shares. The total value stays the same, but each share is priced lower.
As of now, experts suggest different targets. Some see Adani Power moving toward ₹620-₹650 if the stock split is approved and demand stays strong. Targets may change later.
In 2025, companies like Adani Power announced plans to consider a stock split. More companies may join, but official updates will come from each company’s board.
A 2:5 stock split means you will get 5 shares for every 2 you own. The share price drops, but your total holding value stays the same.
Disclaimer:
This is for information only, not financial advice. Always do your research.