Adani Power Limited , a key player in India's energy sector, has received shareholder approval for a significant corporate action aimed at improving stock liquidity and accessibility. The company announced that its shareholders have given the green light to a 1:5 stock split through a postal ballot resolution.

Stock Split Details

The approved stock split will subdivide each existing equity share with a face value of Rs 10.00 into five shares with a face value of Rs 2.00 each. This move is expected to make the shares more affordable for retail investors and potentially increase market participation.

Capital Structure Changes

Following the stock split, Adani Power's authorized share capital will remain unchanged at Rs 28,000.00 crore. However, the composition will be altered as follows:

Shareholder Approval Process

The company conducted the approval process through a postal ballot, with e-voting facilities provided to shareholders. The results showed overwhelming support for the stock split:

• 99.9993% of the total votes were cast in favor of the stock split resolution.
• Only 0.0007% of the votes were against the proposal.

Memorandum of Association Amendment

Alongside the stock split, shareholders also approved the alteration of the Capital Clause in the company's Memorandum of Association to reflect the new share structure. This resolution also received strong support, with 99.9986% of votes in favor.

Management's Rationale

Adani Power's management stated that the primary objective of the stock split is to enhance liquidity in the company's shares and encourage wider participation from retail investors. By making the shares more affordable, the company aims to broaden its shareholder base.

Next Steps

While the stock split has been approved, the record date for its implementation has not yet been announced. The company has stated that this date will be communicated separately, which will determine when the split takes effect for existing shareholders.

Investors and market participants will be keenly watching for the announcement of the record date and the subsequent impact on Adani Power's stock price and trading volumes in the coming weeks.

Adani Power Limited , India's largest private sector thermal power producer, has achieved a significant milestone in its journey towards self-sufficiency and sustainable growth. The company has received approval from the Ministry of Coal, Government of India, to commence operations at its Dhirauli Mine in Singrauli district, Madhya Pradesh.

Key Highlights

• Adani Power's subsidiary, Mahan Energen Ltd., owns the Dhirauli Mine
• The mine has a peak production capacity of 6.5 million tonnes per annum (MTPA)
• Open cast mining will contribute 5 MTPA, with the remainder from underground operations
• The company aims to achieve peak open cast rated capacity by FY27
• The mine boasts a gross geological reserve of 620 MMT and a net geological reserve of 558 MMT

Strategic Importance

This development marks Adani Power's first captive mine to receive government approval for commencing mining operations. The Dhirauli Mine is expected to play a crucial role in enhancing the company's raw material security and reinforcing its leadership position in the power sector.

SB Khyalia, Chief Executive Officer of Adani Power, commented on the significance of this approval, stating, "The commencement of mining at the Dhirauli block marks a pivotal milestone in Adani Power's journey towards self-sufficiency and sustainable growth. By integrating backward into raw material sourcing, we are not only optimizing input costs but also enabling ourselves to deliver competitively priced power for millions of consumers."

Operational Details

The Dhirauli Mine is set to fulfill Adani Power's merchant power requirements and supply coal to the nearby 1,200 MW Mahan Power plant, which is currently undergoing an ambitious 3,200 MW expansion. Adani Power holds a 30-year mining lease for the block, ensuring long-term operational continuity.

As part of its responsible mining initiative, Adani Power may also wash and process the mined coal within the mining area itself. This approach aims to prevent impurities and inert materials from being carried beyond the mine area, resulting in more benign emissions.

Future Outlook

With the commencement of operations at the Dhirauli Mine, Adani Power is poised to strengthen its position in the power sector. The company's focus on backward integration and sustainable practices demonstrates its commitment to long-term value creation for all stakeholders while contributing to India's energy security.

As Adani Power continues to harness technology and innovation, it remains dedicated to its goal of transforming India into a power-surplus nation and providing quality, affordable electricity for all.