Adani Power Shares Plunge 80%? Understanding the Stock Split & What Actually Happened
On Monday, September 22, 2025, Adani Power shares drew widespread attention as their price appeared to have dived nearly 80%, trading as low as ₹147 per share on the NSE. Media headlines proclaimed a crash. But before investors panic, here’s the full story—what caused the sharp drop, what the stock split means, and why it’s not a real loss in value.
📉 What Was Reported
- The stock closed at ₹716.10 on Friday, September 19, 2025—rising ~13.4% that day. mint+1
- On Monday, shares began trading ex-split, and opened around ₹147-150, reflecting the stock being subdivided. NDTV Profit+2Business Today+2
- Headlines spoke of an “80% crash” or crash “in just one day” because of direct reference to closing Friday vs opening Monday prices. Moneycontrol+2Business Today+2
🧮 What Exactly Happened: Stock Split Explained
| Feature | Details |
|---|---|
| Type of Corporate Action | A stock split, not a bonus issue, not a price drop due to poor business or volatility. Business Today+2Zerodha Trading Q&A+2 |
| Split Ratio | 1:5 – Every existing share with face value ₹10 is now divided into 5 shares of face value ₹2 each. Zerodha Trading Q&A+2Financial Express+2 |
| Effect on Price per Share | Price per share drops proportionally. If a share closed at ~₹709.05 (face value ₹10), after split it adjusts to ~₹141.81 (face value ₹2). Business Today+1 |
| Number of Shares | Total number of shares held by investors increases 5-fold. E.g., if you held 1 share, you now hold 5. But total value remains the same. Zerodha Trading Q&A+1 |
| Market Cap / Intrinsic Value | Remains unchanged. Only per share price and face value change. NDTV Profit+1 |
🔍 Why It Looks Like a Crash—but Isn’t One
- Optical / accounting adjustment: Comparing Friday’s price with the new ex-split price makes it look like a huge fall. But that’s because price is divided by 5 roughly.
- No change in value: If you owned shares before the split, your investment value remains the same—you just have 5× shares at ~1/5 price each.
- Liquidity & affordability: One goal of such stock splits is to make the shares more affordable to small retail investors and to improve trading liquidity. Business Today+1
✅ Key Facts Investors Should Know
- Record Date: September 22, 2025 is the record/ex-date for the split. Those who held shares on or before the record date (or the cum-date, which was earlier) will receive the split shares. NDTV Profit+1
- Demat Credit Delay: It may take a couple of trading days post record/ex-date for the new subdivided shares to reflect in investor’s Demat account. Until then, the display might show old numbers or odd figures. Zerodha Trading Q&A+1
- Dividend Entitlement & Rights: The rights (like dividends) are preserved in proportion. Face value changes, but ownership percentages, claims on profit/reserves remain consistent. Business Today+1
📈 What Else Happened Alongside the Split
- Market watchers note that Adani Power shares rose ~18-19% intraday on the ex-split day (adjusted basis) after the split. This indicates investor enthusiasm, possibly boosted by broader favorable news like SEBI dismissing allegations related to Hindenburg Research. Reuters+3Moneycontrol+3Business Today+3
- The company has been performing well in recent months:
- It was one of the best performing stocks among Adani group post the regulatory developments. Business Today
- Board approved this first-ever stock split earlier in September. Zerodha Trading Q&A+1
⚠️ What This Doesn’t Change
- Company fundamentals remain intact—business operations, profit/loss, debt, capacity etc. are not affected by the split.
- Market capitalization stays the same, meaning overall value of the company remains as before.
- Ownership stake per shareholder remains the same in percentage terms. You don’t lose or gain proportional share.
- Valuations metrics like P/E may need adjusted data for per-share basis, so comparisons across time without adjusting may seem misleading.
💡 How Investors Should Read Such Situations
- Always look for corporate action notices (stock splits, bonus issues etc.). They usually are filed and announced well in advance. Financial Express+1
- Check whether stock is trading ex-split or cum-split, because price changes usually happen ex-split and are mechanical.
- Compare adjusted price charts (many charting platforms adjust for splits). Don’t compare un-adjusted Friday close to ex-split Monday open.
- Understand that apparent “losses” are often just display artefacts until new shares are reflected in accounts.
🔍 Expert & Market Commentary
- Many analysts and business-news outlets have published explanations saying “don’t panic” – the sharp drop is optical due to the split. Business Today+2Moneycontrol+2
- Moneycontrol issued a story: “Why you should ignore the 80% plunge?” explaining that the fall is not genuine. Moneycontrol
- Business Today also published detailed explanation of stock split, how the face value changes, what happens to share count etc. Business Today
🔚 Final Thoughts
So, is it true that Adani Power shares crashed 80% in one day? No — not in real economic or valuation terms.
- The “crash” is optical, caused by the 1:5 stock split, reducing per-share face value and price but keeping value constant.
- For a shareholder, nothing of value was lost. You now just hold more shares with proportionally lower price.
- Investors should be aware of these events to avoid confusion, and always check if price changes are due to corporate actions.
Adani Power’s stock split is a strategic move — aimed at enhancing liquidity, making the stock accessible to more investors, and thereby possibly improving trading volumes and market depth.
External Reference for More Details:
Adani Power shares crash 80% in just one day! Is that true? — Economic Times The Economic Times
2025“Adani Power Stock Explodes: Morgan Stanley’s Overweight Call Signals Massive Upside”
Adani Power Shares Rally as Morgan Stanley Initiates ‘Overweight’ Coverage With ~30% Upside
Shares of Adani Power Limited (APL) shot up by nearly 9-14% on September 19, 2025, after global investment bank Morgan Stanley initiated coverage with an “Overweight” rating and set a target price of ₹818, implying about 30% upside from its prior closing. This strong endorsement has sparked fresh interest among investors, buoyed by bullish financial metrics, regulatory clarity, and aggressive growth plans. mint+2The Times of India+2
Key Highlights That Fuel the Surge
🚀 Capacity Expansion & Market Share
- Currently, Adani Power operates ~18.15 GW of coal-based power capacity spread across 12 plants in 8 states. mint+3Investing.com+3Asianet Newsable+3
- Morgan Stanley expects the capacity to more than double to 41.9 GW by fiscal year 2032, projecting its share of India’s coal-based capacity & generation to rise from ~8% (FY25) to ~15% by FY32. Investing.com+2mint+2
🧮 Financial Strength & Profitability Forecast
- Net debt-to-EBITDA ratio for FY25 is reported at ~1.5x, demonstrating strong balance sheet discipline. Investing.com+2mint+2
- The brokerage sees EBITDA potentially tripling by FY33 from FY25 levels, driven by execution of capacity additions, new PPAs (Power Purchase Agreements), and improved coal sourcing and internal efficiency. mint+2Business Today+2
🔍 Regulatory Clarity & Turnaround Track Record
- The company has resolved many regulatory & legacy issues which had weighed on investor sentiment, including those stemming from the short-seller Hindenburg report. SEBI’s dismissal of certain allegations has provided a strong positive catalyst. Moneycontrol+2Stocktwits+2
- Adani Power has a track record of reviving stressed or underutilised assets: plants like Mahan, Raipur, and Raigarh have been turned around, with substantial improvement in EBITDA and operations. Asianet Newsable
💡 Corporate & Market Context
- The surge also reflects broader sentiment in India’s power sector, where coal remains vital for meeting peak demand, industrial growth, and expansion of base load capacities. Business Today+1
- APL has been designated a “Top Pick” by Morgan Stanley among utility / thermal power peers due to its growth visibility, execution capability, and strong margin potential. Moneycontrol+1
Risks & What Investors Should Watch
While the outlook is strongly positive, here are some risks and caveats to keep in mind:
- Project execution delays: Large capacity additions require land acquisition, equipment procurement, environmental clearances, etc. Any hiccups can delay timelines and inflate costs.
- Coal procurement & logistics constraints: Coal supply chain disruptions or cost escalations (imported or domestic) could eat into margins.
- Merchant vs. PPA mix: Adani Power’s merchant (non-contracted) capacity portion (~20%) exposes it to market price and demand fluctuations. Improvement here is crucial. Investing.com+1
- Regulatory / environmental pressure: Coal-based power remains under scrutiny for environmental impact. Policy changes on emissions or energy transition could pose long-term risks.
What This Means for Investors
If you’re considering Adani Power, here’s what the Morgan Stanley call suggests:
- Target price of ₹818 is aggressive but grounded, implying ~30% upside from recent levels. Investing.com+2The Economic Times+2
- Growth will come from capacity scaling, signing more PPAs, better profitability from revived assets, and improving financial metrics (lower net debt/EBITDA).
- With regulatory hang-ups mostly cleared (SEBI’s action, etc.), investor confidence is likely to stay higher. Reuters+2Stocktwits+2
🔍 Final Take
Adani Power is emerging as one of the most compelling turnaround stories in India’s energy sector. With a strong pedigree of acquisitions, regulatory clarity, and ambitious capacity expansion, the company could well deliver outsized returns if it meets or exceeds the targets laid out by Morgan Stanley.
The “power” word here isn’t just metaphorical — Adani Power could very literally power up its earnings and market value over the next few years. But for long-term investors, the key will be watching execution and external risks (coal supply, policy shifts) closely.
External Reference for More Info:
For a deep read on Morgan Stanley’s report and Adani Power’s growth projections, check this Economic Times article: “Adani Power share price target at Rs. 818: 3 reasons the stock is up 9%” The Economic Times
