Following SEBI’s regulatory clearance, Adani Power executed a historic 1:5 stock split on September 22, 2025, reducing the share price from ₹709 to approximately ₹142. The split triggered a 20% surge as retail participation increased. This guide analyzes the mechanics of the Adani power stock split, examines market reactions, compares valuations with peers, and provides actionable insights for investors navigating this opportunity.
When Adani Power announced its first-ever stock split in September 2025, the market responded enthusiastically. The Adani power stock split transformed each ₹709 share into five shares at approximately ₹142, making the stock more accessible to retail investors. Within hours, the stock surged 20%, hitting ₹168. But does this split create real value, or is it merely psychological? Let’s break down what this means for your investment.
Understanding the 1:5 Adani Share Split
A stock split is a mathematical exercise where a company divides existing shares into multiple new shares. The Adani share split works simply: if you owned 1 share at ₹750, you now own 5 shares at ₹150 each. Your total wealth remains ₹750—nothing has changed except the number of shares.
Think of exchanging a ₹500 note for five ₹100 notes. More pieces of paper, same purchasing power. The company hasn’t created new value; it has simply sliced the same pie into smaller pieces. The face value decreased from ₹10 to ₹2 per share, while outstanding shares increased proportionally.
Why Did Adani Power Stock Jump 20% After the Split?
If the Adani stock split doesn’t create value, why the surge? The answer lies in market psychology:
• Affordability Perception: At ₹150, the stock feels more accessible than ₹750, even though the valuation is identical. This psychological barrier removal attracts retail investors who previously stayed away.
• Enhanced Liquidity: Lower prices increase trading volumes as more investors can participate with smaller capital. This boosts market activity and creates upward price momentum.
• SEBI Clearance: The split coincided with regulatory approval following Hindenburg allegations, restoring investor confidence and creating positive sentiment.
• Psychological Anchoring: Investors compare stocks by absolute price rather than market cap. Stocks trading at ₹100-₹200 appear ‘reasonable,’ driving demand based on perception alone.
The rally stems from fresh market participation and improved sentiment, not fundamental business changes.
How the Adani Power Split Affects Your Returns
Earnings Per Share (EPS): Pre-split EPS was ₹33.55, now adjusted to ₹6.71 (divided by 5). Total earnings remain unchanged. If you owned 100 shares generating ₹3,355 before, you now own 500 shares still generating ₹3,355 total.
Dividends: Adani Power hasn’t paid consistent dividends, focusing on reinvestment. Any future dividends would split proportionally—a ₹5 pre-split dividend becomes ₹1 post-split per share, maintaining total income.
Key Point: More shares don’t mean higher earnings or dividends. The split is cosmetic—wealth comes from company profitability, not share count.
Adani Power Valuation: Comparing with Industry Peers
Post-split, evaluating Adani Power against competitors reveals important insights:
| Company | P/E Ratio | P/B Ratio | EV/EBITDA |
| Adani Power | 26.4 | 5.8 | 15.4 |
| NTPC | 13.7 | 1.78 | 8.85 |
| Tata Power | 30.7 | 3.52 | 11.35 |
| JSW Energy | 43.69 | 3.44 | 18.46 |
At P/E 26.4, Adani Power trades at nearly double NTPC’s 13.7, reflecting growth expectations. The P/B ratio of 5.8 significantly exceeds NTPC’s 1.78. This premium valuation reflects investor confidence in expansion plans and regulatory clarity, not the lower absolute price.
Should You Invest After the Adani Power Split?
Don’t Buy Just Because It Looks Cheaper: ₹150 feels affordable, but affordability doesn’t equal value. Valuation depends on market cap, earnings, and growth prospects—not share price.
Check Fundamentals First: Evaluate capacity expansion targets (doubling by FY32), debt levels, execution risks, coal dependency amid energy transition, and plant efficiency. Adani Power’s ambitious plans require successful execution.
Use the Split as a Review Point: The Adani stock split is a reminder to reassess financials, not a buy trigger. Would you invest if it hadn’t split? If no, the split shouldn’t change your decision.
Investment Principle: Buy the business, not the split. True returns come from earnings growth, debt management, and capacity expansion—not share division.
Conclusion
The Adani power stock split successfully improved accessibility and sparked a 20% rally, but it didn’t create new value. Your returns over the next five years depend on Adani Power’s execution of expansion plans, debt management, and earnings growth—not how many pieces each share is divided into. Use this as a checkpoint to evaluate fundamentals, not as a standalone reason to invest. The stock may trade at ₹150 now, but wealth creation comes from business performance, not corporate actions.
FAQs On Adani Power Stock Split
The Adani Power stock split was 1:5, executed on September 22, 2025. Each share (₹10 face value) became five shares (₹2 face value each).
No. The split doesn’t increase value—it redistributes existing value across more shares. Your total holdings remain unchanged.
The surge resulted from improved accessibility at ₹150, increased liquidity, positive sentiment from SEBI clearance, and psychological price anchoring—not fundamental changes
Adani Power trades at P/E 26.4 (vs NTPC’s 13.7), reflecting a premium valuation based on growth expectations, not affordability.
Investment decisions should be based on fundamentals—capacity expansion, debt levels, earnings trajectory—not the split. Evaluate whether current valuations justify the growth story.
Disclaimer: Investments in securities markets are subject to market risks. Read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory.
