Adani Power on August 1 announced its first-ever stock split in the ratio of 1:5. This means that every single share held by its eligible shareholders will be split into five, without changing the overall value of their holding.
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In an exchange filing, Adani Power announced that its board of directors has considered and approved the split of one existing equity share of the company with a face value of Rs 10 each into five equity shares with a face value of Rs 2 per share.
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The record date to determine the eligibility of the shareholders set to receive the payment is yet to be announced. Notably, shareholders must own the stock as on the record date to be eligible to enjoy the stock split.
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If approved, this will be the first stock split conducted by the company. The company said 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”.
If a shareholder owns 10 shares of Adani Power worth Rs 100 each, he will own 50 shares of the company after the stock split, with each share being worth Rs 20. However, the total worth of his holding will remain unchanged at Rs 1,000.
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A company announces stock split to increase the overall liquidity of the stock. While this increases the total number of shares, it does not change the market capitalization of the company. This makes it more affordable for other investors to add to their portfolio, creating strong upside potential for the stock.
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Adani Power shares have risen more than 1 percent in the past five days, but fell over 2 percent in the past one month. The stock has gained more than 15 percent in the past six months, and is up nearly 10 percent in 2025 so far. Its P/E ratio currently stands at 17.79.
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Along with the stock split, Adani Power also released its results for the first quarter of the financial year 2026. The firm’s net profit declined 13.5 percent on-year to Rs 3,384 crore in Q1 FY26. Its revenue from operations meanwhile fell 6 percent on-year to Rs 14,109 crore.