Key Points:
- Stock Split Rally – Shares up 34% in 2 days.
- SEBI Clearance – Boosted investor confidence.
- Expansion Plan – Targeting 41.87 GW by 2032.
Mumbai, Sept. 22—Adani Power share price surged to a fresh 52-week high Monday after rising 34 percent in two trading sessions, driven by heavy volumes and investor optimism following a stock split and regulatory clearance for the Adani Group.
The Adani Power share price climbed as much as 19 percent intraday to ₹168.90 on the BSE, close to its record level of ₹179.35 reached June 3, 2024. At 10:03 a.m., shares were up 17 percent at ₹165.40, compared with a 0.13 percent decline in the benchmark BSE Sensex. More than 76 million equity shares changed hands on the BSE and NSE during early trade.
The rally comes as the company turned ex-date Monday for a stock split in a 1:5 ratio, reducing the face value of each share from ₹10 to ₹2. Adani Power said the split aims to improve liquidity and encourage participation from retail investors by making shares more affordable. The record date for shareholder eligibility was set for Sept. 22.
Regulatory boost
Investor sentiment also improved after the Securities and Exchange Board of India (SEBI) on Sept. 18 closed proceedings against Adani Group companies, Chairman Gautam Adani, and related entities. The regulator dismissed allegations of fund diversion, related-party transaction violations, and accounting fraud that were raised in a 2023 report by U.S.-based Hindenburg Research. SEBI said it found no evidence of stock manipulation or irregularities, ending a two-year probe that weighed heavily on Adani Group stocks.
The decision marked a significant legal and reputational win for the conglomerate, easing concerns among institutional and retail investors.
Brokerage outlook
Adding momentum to the rally, global brokerage Morgan Stanley initiated coverage of Adani Power share price with an “Overweight” rating and a base-case target price of ₹163.6 per share, adjusted for the split.
“India’s energy dynamics are changing, with new demand drivers such as data centers, semiconductor manufacturing, and electric mobility,” Morgan Stanley said in a note. The firm projects Adani Power’s market share to increase from 8 percent currently to 15 percent by fiscal 2032, supported by expansion in capacity and regulatory clarity.
The brokerage expects a 17 percent compound annual growth rate (CAGR) in earnings from fiscal 2025 to 2033, with potential upside if profitability improves in the company’s recently acquired 2.9 gigawatt (GW) plants. Morgan Stanley also noted Adani Power’s strong balance sheet, with net debt-to-Ebitda of 1.5 times in fiscal 2025, among the lowest in its coverage universe.
Business expansion
Adani Power is India’s largest independent power producer and the second-largest thermal developer after state-run NTPC. The company has an installed thermal capacity of 18,110 megawatts (MW) across 12 power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Tamil Nadu, in addition to a 40 MW solar facility in Gujarat.
The company is pursuing India’s largest private-sector capital expenditure program in the power sector. Its goal is to expand its generation capacity to 41.87 GW by 2031-32, more than double its current capacity of 18.15 GW. The expansion is aimed at meeting India’s growing base-load electricity demand, driven by industrial growth and rising urban consumption.
Market performance
The Adani Power share price has gained more than 60 percent so far in 2025, outperforming the broader market indices. Analysts attribute the latest rally to the combination of technical factors following the stock split, the SEBI clearance, and positive brokerage coverage.
“The stock has seen strong retail interest after the split, and institutional buying has picked up after regulatory clarity,” said a Mumbai-based analyst with a domestic brokerage.
At Monday’s close, the Adani Power share price settled at ₹170.25, up 20 percent over the past five trading days, with the trading range widening from ₹116.67 to ₹170.25 during the month.
Visit Business Viewpoint Magazine to read more.
