Adani Power Shares Rise As Company Considers Maiden Stock Split This Week

Adani Power Ltd. board will consider a stock split at a board meeting this week, according to a notification on the exchanges on Tuesday. Shares rose after the announcement.

The board will meet on Aug. 1 and decide the subdivision of existing equity shares of the face value of Rs 10 fully paid-up. If approved, the stock split will be Adani Power's first-ever corporate action.

Details regarding the stock split ratio, ex-date and record date for determining the eligible shareholders will be announced after the board decision.

A stock split is a corporate action where a company divides its existing shares into multiple new shares, increasing the total number of outstanding shares but decreasing the price per share.

Though it does not change the overall market capitalisation of the stock, it can make the shares more accessible to a wider range of investors by lowering the price per share.

NDTV Profit had reported on July 9 that a positive corporate action is expected.

Apart from this, Adani Power is set to declare its June quarter results on the same day.

The total promoter holding is 74.96%, as per the latest shareholding data on the BSE. Nearly 18 lakh retail investors own a combined 4.8% equity. Foreign portfolio investors have 12.46% stake.

Adani Power share price rose over 4% to Rs 594.7 apiece on the NSE after the announcement. The benchmark Nifty 50 was up 0.22%.

The stock has fallen nearly 18% in the last 12 months and risen 11% so far this year.

The relative strength index was at 36. The total traded volume was 0.65 times the 30-day average. Over 33 lakh shares were traded, valued at Rs 196.6 crore as per NSE data.

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