Adani Power Limited, one of India’s leading private sector power generation companies, has made a significant corporate announcement that is set to impact its shareholders and investors. In a filing dated September 5, 2025, the company disclosed the outcome of its postal ballot process regarding the sub-division or split of its equity shares. This decision, made in accordance with Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, is aimed at restructuring the face value of its shares to improve market participation and liquidity.

The move is a follow-up to an earlier disclosure dated August 1, 2025, when Adani Power informed the stock exchanges about its Board of Directors’ approval for the sub-division of shares. Following shareholder approval via postal ballot, the company has now finalized the details of the share split and set the record date for implementation.

According to the resolution passed, each existing equity share of Adani Power with a face value of Rs. 10 will be split into five equity shares with a face value of Rs. 2 each, fully paid-up. In simple terms, this means that if an investor currently holds one share of Rs. 10 face value, after the split they will hold five shares of Rs. 2 face value each. While the number of shares will increase, the overall value of the investor’s holding will remain the same.

The company has also made a related amendment to its Memorandum of Association. Specifically, Clause V, which pertains to the capital clause of the company, has been altered to reflect the new structure of equity share capital arising from the sub-division of shares. This legal alteration is a mandatory step to align the company’s charter documents with the revised shareholding pattern post-split.

For the purpose of determining shareholder eligibility for this sub-division, Adani Power has fixed Monday, September 22, 2025, as the record date. Shareholders whose names appear on the company’s register of members as of this date will be entitled to receive the sub-divided shares. The record date is a crucial milestone in corporate actions like splits and bonuses, as it establishes the cut-off date for investors to qualify for the benefits.

The announcement carries multiple implications for both the company and its investors. Firstly, a share split increases the number of outstanding shares, which often enhances market liquidity. With smaller denominations, shares become more affordable for retail investors who may find the pre-split price relatively high. By lowering the per-share face value, Adani Power is making its stock more accessible to a larger base of investors, potentially increasing retail participation and boosting trading volumes on the exchanges.

Secondly, while a share split does not change the company’s market capitalization or the intrinsic value of an investor’s holding, it often improves the perception of affordability. This psychological impact can sometimes attract new investors, especially in a bullish market, and may have a positive effect on the stock’s demand dynamics.

For Adani Power, the move aligns with its broader corporate governance practices and compliance with SEBI’s Listing Obligations and Disclosure Requirements. By communicating the details transparently to both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), where its shares are listed under the scrip codes 533096 and ADANIPOWER respectively, the company has ensured that investors have complete clarity on the matter.

This sub-division also reflects the company’s intent to reward its shareholders by creating a more investor-friendly capital structure. In the Indian stock market, share splits are often viewed positively as they demonstrate confidence in the company’s growth trajectory and willingness to broaden shareholder participation.

As the record date of September 22, 2025, approaches, investors will be closely watching how the market reacts to this development. Historically, stock splits in large-cap companies tend to generate significant interest and trading activity. For Adani Power, this corporate action could further enhance its visibility in the market and attract a new segment of retail investors who previously found the stock price out of reach.

In conclusion, Adani Power’s decision to split its equity shares from Rs. 10 face value into Rs. 2 face value each represents a strategic step toward improving liquidity, accessibility, and investor participation. While the fundamental value of the company remains unchanged, the increased number of shares and reduced face value per share could pave the way for greater engagement from the investor community. With the record date now fixed for September 22, 2025, all eyes will be on how this move plays out in the market in the coming weeks.