Adani Power Stock Split: Last Day To Buy Shares To Qualify Before Record Date

Adani Power Ltd. shares will be in focus on Friday as it marks the last session for investors to buy shares to qualify for the stock split before the scrip trades ex/record-date.

The board last month approved a plan for a stock split in the ratio of 1:5. Each fully paid-up equity share, having a face value of Rs 10, will be divided into five equity shares, each with a value of Rs 2. The stock split will be Adani Power's first-ever corporate action.

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. Although it does not alter 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.

The record date determines shareholder eligibility to qualify for the corporate action.

Under India's T+1 settlement cycle, shares purchased on the record date itself will not qualify for the stock split. Hence, if the record date is Sept. 22, then shares must be purchased by Sept. 19.

The ex-date, which typically coincides with the record date, marks when the share price adjusts to reflect the share subdivision.

Adani Power has 385.69 crore fully paid-up equity shares. 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 a 12.46% stake.

Adani Power share price closed 0.1% lower at Rs 630.85 apiece on the BSE on Thursday, compared to a 0.4% gain in the benchmark Sensex.

The stock has fallen 3% in the last 12 months and risen 19% so far this year. The scrip is 6.9% below its 52-week high of Rs 678 hit on Sept. 24, 2024.

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