Adani Power shares soar 18% post stock split
What's the story
Adani Power's shares have witnessed a massive spike of 18% on the National Stock Exchange (NSE) after the company's first-ever stock split. The shares opened at ₹148.2 today, down from the previous closing price of ₹709.4, but quickly rose to ₹167.3 by mid-morning. The board had approved a 1:5 stock split earlier this month, making each share more affordable for smaller investors and potentially boosting trading activity in the process.
Investor accessibility
Understanding the stock split
The recent stock split by Adani Power has reduced the face value of each share from ₹10 to ₹2. The split will only impact those shareholders who had the company's shares in their demat account by Friday's trading session. New buyers today won't be eligible for this adjustment. For instance, if a shareholder held 100 shares of Adani Power at the end of Friday's trading session, their total share count would adjust to 500 (considering a 1:5 split).
Business expansion
New power supply deal boosts investor sentiment
The surge in Adani Power's shares also comes after the company announced a new deal to supply 2,400MW of electricity from an upcoming plant to Bihar. This is part of its expansion strategy in India's energy sector. Investor confidence was further boosted after India's market regulator dismissed recent allegations against the Adani Group by Hindenburg Research, helping stabilize the company's reputation and outlook.