Adani Power Hits Upper Circuit After 1:5 Stock Split, Retail Buzz & SEBI Clean Chit Fuel Strong Rally
**Mumbai: Adani Power Shares Surge 20% After Stock Split Becomes Effective**
Adani Power shares soared 20 percent on Monday following the implementation of the company’s stock split. The stock touched a high of Rs 168.50 on the BSE, adjusted to the new face value.
On an unadjusted basis, the share opened at Rs 141.80, significantly down from Rs 709.05 — a change resulting from the 1:5 stock split, where each share of Rs 10 was divided into five shares of Rs 2 each.
### What Is a Stock Split?
A stock split divides existing shares into smaller parts to make them more affordable for investors. In Adani Power’s case, one share has now become five, with the face value reduced from Rs 10 to Rs 2.
It’s important to note that a stock split does not affect the company’s overall market value but makes the stock more accessible to smaller investors. This often results in increased market participation and improved trading liquidity.
Following the split, the company’s total number of paid-up shares has increased from approximately 385 crore to over 1,928 crore. However, the total share capital remains unchanged.
This move differs from a bonus issue, where shareholders receive free additional shares but the face value of each share remains the same.
### Clean Chit from SEBI Boosts Investor Sentiment
Another major factor contributing to the rally in Adani Power’s stock price is the recent regulatory clarity provided by SEBI regarding allegations made by Hindenburg Research.
SEBI concluded that claims of fund misuse and market manipulation involving firms such as Adicorp and Milestone were not substantiated. Although related-party transactions existed, they were properly disclosed as per regulations.
This clean chit from the regulator has brought relief to investors and boosted confidence in Adani Group stocks.
### Analyst Support Adds to Momentum
Adding further momentum, global investment firm Morgan Stanley recently initiated coverage on Adani Power, naming it a top pick.
Morgan Stanley highlighted the company’s turnaround story, regulatory clarity, and growth potential driven by new projects and power deals.
### Outlook
With strong market momentum, positive regulatory news, and improved stock accessibility, Adani Power has emerged as one of the most-watched stocks in the market currently.
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*Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any investment or trading decisions in the stock market.*
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