Adani Power , India's largest private sector thermal power producer, has made headlines with a significant block trade on the National Stock Exchange (NSE) while simultaneously advancing its expansion strategy in Madhya Pradesh.

Block Trade Details

Adani Power executed a block trade worth Rs 2,268.46 crores on the NSE. The transaction involved approximately 37,054,239 shares changing hands at a price of Rs 612.20 per share. This substantial trade has drawn attention to the company's stock market activity and liquidity.

Expansion in Madhya Pradesh

In a separate development, Adani Power has secured an additional 800 MW capacity from MP Power Management Company Limited (MPPMCL) under a 'Greenshoe Option'. This comes on the heels of an earlier 800 MW capacity award, bringing the total awarded capacity to 1,600 MW in Madhya Pradesh.

Key Points of the Madhya Pradesh Project

Significance of the Expansion

This project marks a first-of-its-kind adoption of the greenshoe option in a thermal power tender in India. The innovative inclusion of this mechanism in coal-based power procurement is expected to help Madhya Pradesh meet its growing electricity demand due to increased industrialization and urbanization.

Employment Generation

The project is anticipated to create significant employment opportunities:

• 9,000 - 10,000 jobs during the construction phase
• Approximately 2,000 jobs once operational

Adani Power's Growth Trajectory

Adani Power has secured power supply orders totaling 7,200 MW over the last 12 months, reinforcing its position in the Indian power sector. The company is currently implementing a 23.72 GW capacity expansion, which aims to increase its overall generation capacity to 41.87 GW by 2031-32.

S.B. Khyalia, Chief Executive Officer of Adani Power, stated, "This reinforces our commitment to providing reliable, affordable, and sustainable power to the state and its people. The project further strengthens our long-term partnership with Madhya Pradesh and highlights our dedication to supporting India's energy security and economic growth."

As Adani Power continues to expand its footprint in the Indian power sector, the recent block trade and capacity additions underscore the company's dynamic market presence and ambitious growth plans.

Adani Power , a major player in India's energy sector, has seen its shares climb significantly over the past few trading sessions, driven by two key developments and potential benefits from regulatory changes.

Stock Performance

Adani Power's stock has demonstrated strong momentum, with shares rising 8% over three consecutive sessions to reach Rs 643.95 on the Bombay Stock Exchange (BSE). This recent rally contributes to the stock's impressive performance, having gained 24% and 7% over the past week.

Key Drivers

The recent surge in Adani Power's stock price can be attributed to two major announcements:

1. Bhutan Hydroelectric Project: Adani Power has entered into a shareholders' agreement with Bhutan's Druk Green Power Corporation to develop a 570 MW hydroelectric project. The joint venture will have a 49:51 shareholding structure, with Adani Power holding the minority stake.

2. Stock Split Approval: The company has received approval for its first-ever stock split. The board has decided to subdivide each existing share with a face value of Rs 10 into five shares with a face value of Rs 2 each.

Potential Benefits from GST Reforms

Adding to the positive sentiment, Adani Power is expected to benefit from recent GST reforms. The removal of compensation cess on coal could potentially reduce landed coal prices by 8-10%. This change is anticipated to improve tariff benefits by Rs 0.10-0.12 per unit, potentially boosting the company's profitability.

Technical Indicators

Technical analysis of Adani Power's stock reveals bullish signals:

• The stock is currently trading above all key moving averages, indicating strong upward momentum.
• The Relative Strength Index (RSI) stands at 72.30, placing it in overbought territory. While this suggests strong buying pressure, investors should be cautious as it may also indicate a potential for a short-term pullback.

Market Perspective

In response to the significant volume movement, Adani Power issued a clarification to the BSE, stating that the increase in trading volume is purely due to market conditions and is market-driven. The company emphasized its commitment to making timely disclosures as required by SEBI regulations.

As Adani Power continues to expand its operations and benefit from regulatory changes, investors will be closely watching the company's performance in the coming months. The stock split and the Bhutan hydroelectric project represent significant milestones for the company, potentially setting the stage for further growth and increased investor interest.