Adani Power shares jump 18% after stock split — Why the 80% plunge is misleading
Adani Power’s share price appeared to crash nearly 80% in Monday’s session, but the drop was only a technical adjustment following the company’s 1:5 stock split. In reality, the stock surged more than 18% to hit a fresh record high after turning ex-bonus.
In August, Adani Power’s board approved its first-ever stock split, issuing five shares for every one held. The record date to determine shareholder eligibility was set for September 22, News.Az reports, citing foreign media.
The stock split doesn’t change the overall value of an investor’s holdings. For example, someone holding 10 shares at ₹100 each (₹1,000 in total) will now own 50 shares at ₹20 each — still worth ₹1,000 overall.
The move improves liquidity by making shares more affordable, often attracting retail investors.
Adding to investor optimism, Morgan Stanley initiated coverage on Adani Power with an ‘overweight’ rating after India’s markets regulator SEBI cleared Gautam Adani and his conglomerate of stock manipulation allegations linked to U.S.-based Hindenburg Research.
At 12:04 p.m. IST, Adani Power shares were trading at ₹170.20 on the NSE with a volume of over 132 million.
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