Adani Power’s share price is up by about 7.7% in just two days (ending at ₹648.3 on the BSE on Tuesday and ₹637.50 today). The share price hike came to light after the Bhutan project announcement. Furthermore, this sudden pull-up is also a result of another significant development at Adani Power. So, what are these big happenings? And what is the impact of them on Adani Power internationally in the future? Learn more.
What Is Happening at Adani Power?
As the share price surged, Adani Power is experiencing enhanced market cap growth. The stock price went up by 7.7% in just two days. Currently, the price is around ₹637.50. However, the company itself will not directly earn the cash. The benefit of this hike is more indirect, like:
- Higher valuation
- Easier fund-raising
- Stronger reputation (internationally)
- More investor confidence.
Why Did the Share Price of Adani Power Go Up?
As mentioned above, there are two major reasons for it:
1. A New International Project in Bhutan
- Adani Power signed an agreement with Druk Green Power Corporation (DGPC) in May 2025. DGPC is a government-owned company.
- This partnership is going to build a 570 megawatt hydroelectric project at Wangchhu, Bhutan.
- To swiftly handle the project, both will form a new public company in Bhutan together.
Ownership Split of the Project Company
- Adani Power will own → 49%
- DGPC will ow → 51%
How are they starting the project off?
- Adani Power will get about 4.9 million shares.
- And DGPC will get about 5.1 million shares.
- And each of these share prices is BTN 100 (Bhutanese currency).
What Does the Management Look Like?
- Each of the companies can appoint 3 directors to the board with equal say.
- And let’s say more money is needed for the project to do better, each will have to pour in the funds in the ratio of (49:51).
It is now clear that Adani Power is moving into clean energy (hydropower). This is an excellent development for Adani Power, as it is expanding beyond India, and investors like such growth and diversification.
2. Stock Split
- Just last week, Adani Power’s shareholders agreed on a stock split.
- Currently, 1 share = ₹10 face value.
- But after the split, the share will be divided into 5 smaller shares, meaning each one will have a ₹2 face value.
- For instance, you have 1 (of ₹10) share with you, and right after the split, it becomes 5 shares of ₹2 each.
- The total value remains the same; however, making the share a cheaper unit makes it easier for small investors to buy Adani Power shares.
Why? Well, most companies follow the same because:
- It makes shares more affordable.
- Increases liquidity (more trading activity).
- Helps to expand the number of shareholders.
In Short for Investors in Future
- For investors, the value of the share is the same, but they also benefit from the higher demand due to the stock split + the growth from the Bhutan project.
- The company will now welcome the new investors (as the shares are now affordable) + more liquidity, + a chance to invest in the company that is expanding into clean energy (on an international level).
- And more importantly, the returns will all depend on how well Adani Power executes the project.
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