The shares of Adani Power dropped nearly 6 percent on September 23 as investors may have resorted to profit booking at elevated levels. The stock had rallied 20 percent earlier yesterday after it turned ex-date for 1:5 stock split.
The shares of the company hit an intraday low of Rs 160.25 apiece, snapping a three-day gaining streak. Earlier during the day, the stock had gained more than 1.5 percent to hit a fresh 52-week high of Rs 182.7 apiece. This implies that the stock rallied around 45 percent in just four sessions.
Adani Power stock split:
Adani Power's board of directors during a meeting in August had approved its first-ever stock split in the ratio of 1:5. The record date to determine the eligibility of the shareholders set to receive the bonus equity shares was set on September 22.
Adani Power had earlier said that it has approved the stock split in order to “enhance the liquidity of Company's equity shares by encouraging participation of retail investors as the split will make the shares more affordable to invest”. As a result of the stock split, Adani Power shares appeared to have crashed around 80 percent, while in reality, they simply adjusted to the corporate action.
Adani Group stocks have added almost $20 billion in two sessions after market regulator SEBI cleared the conglomerate and its billionaire founder Gautam Adani of stock manipulation charges levelled by US-based short-seller Hindenburg Research, Bloomberg reported.
SBI Funds, Citadel Securities buy Adani Power shares from GQG, says report:
SBI Funds Management and Citadel Securities LLC were among the buyers of Adani Power's shares sold by GQG Partners LLC in a $250 million deal on bourses last week, Bloomberg cited people familiar with the matter as saying.
GQG Partners sold about 35 million shares, or about a 1% stake, with SBI Mutual buying most of the shares, the report added.
Morgan Stanley bullish on Adani Power shares:
Morgan Stanley initiated call on Adani Power with an 'overweight' rating, saying that the company is a "good illustration of turnaround in India's corporate history". This comes after market regulator SEBI cleared Gautam Adani and his diversified conglomerate of the stock manipulation charges levelled by US-based short-seller Hindenburg Research.
Morgan Stanley called Adani Power its 'top pick'. "APL will deliver strong earnings growth driven by timely completion of projects & more PPA wins medium term," the international brokerage added.
Also read: Our LIVE blog on stock market updates
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
