Adani Power share price surged 9% intraday on Friday, September 19, hitting a day’s high of ₹687 apiece, led by a host of positive developments.
Investor sentiment turned positive after market regulator Sebi dismissed allegations made by US short-seller Hindenburg Research against the Adani Group and its chairman, Gautam Adani. The ruling signalled a possible end to the group’s prolonged regulatory troubles, lifting the overall mood around Adani stocks.
Alongside this positive sentiment, the company’s 1:5 stock split has also kept the counter in focus.
Meanwhile, media reports also suggested that global brokerage Morgan Stanley initiated coverage on the Adani group stock, with an overweight rating. It set the Adani Power share price target at ₹818, signalling a 29% upside from the last close.
Adani Power stock split details
The company has set Monday, September 22, as the record date, which makes Friday the last trading day for investors to purchase shares and be eligible for the split. The move is expected to improve liquidity and widen retail participation in the stock.
Earlier this month, Adani Power’s board approved a stock split in the ratio of 1:5. This means each fully paid-up equity share will be divided into five shares, with the face value adjusting from ₹10 to ₹2. The company has a total of 385.69 crore fully paid-up equity shares.
This marks Adani Power’s first-ever stock split and represents a significant corporate milestone for the company. Though the stock split does not affect the company’s business or fundamentals, it will influence the stock’s valuation metrics and trading patterns.
A stock split is a corporate measure in which a company increases the number of its shares by dividing existing ones into smaller units. While this step raises the total share count and reduces the price per share, it does not affect the company’s overall market capitalisation. The move typically aims to make shares more affordable and attractive to a larger pool of investors.
The record date is key in deciding which shareholders are eligible for the split. Since Indian markets follow the T+1 settlement cycle, buying shares on the record date alone will not make an investor eligible. For instance, if September 22 is the record date, the purchase must be completed by September 19 to qualify.
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