Shares of Adani Power Ltd surged 20 per cent on Monday as the company’s stock resumed trading following a 1:5 stock split, announced in August this year. Its share rose to a day’s high of 170.15 apiece, after opening at Rs 147.9 per share and compared to the previous close of Rs 141.8 per share. It hit the upper circuit in early morning trades. In the last two trading sessions, since SEBI has given the group a partial clean chit on Friday (September 19) regarding related party transactions levelled by Hindenburg, the company’s stock price has jumped 35 per cent. Shares of other group companies also rallied, with Adani Enterprises rising 4 per cent, Adani Energy Solutions climbing 6 per cent and Adani Green Energy up 8.84 per cent on Monday. Adani Power’s stock split In August this year, Adani Power’s board approved a stock split of the existing one equity share of the company having face value of Rs 10 each fully paid- up, into five equity shares having face value of Rs 2 each. The record date for the split of equity shares was kept as September 22. This was the company's first-ever stock split. A record date, or the cut-off date, is the specific day on which a company finalises the eligible shareholders for a corporate action. Impact on shareholders For example, if a shareholder was holding 100 shares of Adani power at Rs 10 each, then after the split, they would own 500 shares priced at Rs 2 each. This means that even if the number of shares have increased post the stock split, the total value of the shares continue to remain the same. What is a stock split? Stock split refers to splitting or sub division of already owned shares into smaller quantities of shares. Companies undertake stock splits to improve liquidity by breaking the existing stocks into smaller quantities by reducing the face value of the stock.
