Adani Power, a key player in India's energy sector, has implemented a significant stock split and seen an adjustment in its share price following a favorable regulatory development.

Stock Split Implementation

Adani Power's recently announced 1:5 stock split has taken effect, marking a notable change in the company's share structure. The split converts each share with a face value of ₹10 into five shares with a face value of ₹2 each. This strategic move aims to enhance share accessibility and improve liquidity in the market.

As a result of the split, Adani Power shares fell 80% to ₹147.00 per share on Monday, down from the previous closing price of ₹716.00 on Friday. It's important to note that this decline is purely optical and does not represent an actual loss in value. Shareholders now hold five times more shares at proportionally lower prices, keeping the total value of their holdings unchanged.

Financial Performance

Adani Power reported strong financial results for the June quarter. The company's consolidated net profit rose 83% to ₹8,759.00 crore, up from ₹4,779.00 crore in the previous year, showcasing significant growth.

Regulatory Clearance and Market Response

The Securities and Exchange Board of India (SEBI) recently cleared the Adani Group of allegations made by Hindenburg Research. This regulatory clearance has boosted investor confidence in the company and the broader Adani Group.

Analyst Outlook

Morgan Stanley has initiated coverage of Adani Power with an 'overweight' rating and a price target of ₹818.00. The firm expects Adani Power to expand its portfolio from the current 18.15 GW to 41.9 GW by FY32 through planned investments of approximately US$22 billion.

Market Implications

The combination of the stock split, strong financial performance, regulatory clearance, and positive analyst coverage paints a promising picture for Adani Power. The increased accessibility of shares following the split may attract a wider range of investors and potentially lead to increased trading volumes.

As Adani Power continues to navigate the dynamic energy sector landscape, investors and market watchers will likely keep a close eye on the stock's performance in the coming weeks and months. The recent developments underscore the company's resilience and its ability to maintain investor interest despite past challenges.

Adani Power , India's largest private coal-based power producer, witnessed a significant uptick on the National Stock Exchange (NSE), climbing 9% to reach Rs 687.00. This surge comes in the wake of three major developments that have bolstered investor confidence in the company.

Morgan Stanley's Bullish Outlook

Morgan Stanley has issued an overweight rating for Adani Power, setting a price target of Rs 818.00. The investment firm's optimistic stance is rooted in Adani Power's dominant position in India's power sector, with an operational capacity of 18.15 GW. Morgan Stanley's analysis projects a substantial expansion in the company's capacity, forecasting growth to 41.9 GW by FY32 through a sizeable investment of $22 billion.

The firm's projections paint a robust picture of Adani Power's financial future:

All figures in Rs crore

SEBI Clearance

In a significant development for the Adani Group, the Securities and Exchange Board of India (SEBI) has cleared Gautam Adani and Adani Group companies of allegations made by Hindenburg Research. The regulatory body found no evidence to support claims of stock manipulation or accounting fraud, providing a boost to investor confidence in the group's companies, including Adani Power.

First-Ever Stock Split Announcement

Adding to the positive momentum, Adani Power has announced its first-ever stock split. The company has set September 22, 2025, as the record date for this corporate action. Stock splits are often viewed favorably by investors as they can increase liquidity and make shares more accessible to a broader range of investors.

Market Impact

The confluence of these factors—a bullish analyst outlook, regulatory clearance, and a forthcoming stock split—has contributed to the significant 9% jump in Adani Power's share price. As the company continues to expand its operational capacity and improve its financial metrics, investors will be closely watching its performance in the coming years.

Adani Power's strong market position and ambitious growth plans underscore its importance in India's power sector. With the positive analyst projections and cleared regulatory concerns, the company appears well-positioned to capitalize on the growing energy demands of the world's most populous nation.