Adani Power stock news: Shares of Adani Power Ltd rose 20% on Monday as trading resumed following a 1:5 stock split announced in August of this year. Its stock surged to a day high of Rs 170.15 per share after opening at Rs 147.9, up from the previous close of Rs 141.8. It reached the top circuit in early morning trades.
The company’s stock price has risen by 35% in the last two trading sessions, after SEBI gave the firm a partial clean chit on Friday (September 19) regarding related party transactions leveled by Hindenburg. Other group firms’ shares also surged, with Adani Enterprises up 4%, Adani Energy Solutions up 6%, and Adani Green Energy up 8.84% on Monday.
Adani Power’s Stock Split
Adani Power’s board approved a stock split in August of this year, dividing the company’s current one equity share, which had a face value of Rs 10 and was fully paid-up, into five equity shares with a face value of Rs 2. The record date for the split of equity shares was September 22. This was the company’s first ever stock split. A record date, also known as the cut-off date, is the particular day on which a business determines which shareholders are eligible for a corporate action.
What is a stock split?
A stock split is the process of splitting or dividing previously owned shares into smaller quantities. Companies use stock splits to increase liquidity by dividing existing equities into smaller quantities and lowering the face value of the stock.
For example, if a shareholder owns 100 Adani Power shares at Rs 10 apiece, following the split, they will own 500 shares at Rs 2. This means that, even if the number of shares grew following the stock split, the overall value of the shares remains constant.
