Adani Power up 8% in 2 days. Here's what's driving the rally

Shares of Adani Power surged for the second straight session, climbing as much as 7.7% in two days to hit a high of Rs 648.3 on the BSE on Tuesday, as investors cheered a series of positive developments, including a key international project deal and plans for a maiden stock split.

Over the weekend, Adani Power announced it had signed a shareholders’ agreement (SHA) with Bhutan’s state-owned Druk Green Power Corp ( DGPC) to set up a 570 MW hydroelectric project at Wangchhu in Bhutan.

Under the terms, both companies will jointly incorporate a public company in Bhutan, with a 49:51 shareholding split between Adani Power and DGPC, respectively. Initially, the project company will issue 4.9 million shares to Adani Power and 5.1 million shares to DGPC at BTN 100 per share.

The agreement also grants both parties the right to appoint three directors each to the project company’s board, with provisions for further capital contributions in proportion to their shareholding.

The Bhutan agreement marks a significant step in Adani Power’s international expansion, reinforcing its ambition to play a larger role in South Asia’s clean energy transition.

Separately, last week, the company announced that its shareholders had approved its first-ever stock split since listing. The board approved the sub-division of each equity share with a face value of Rs 10 into five equity shares with a face value of Rs 2 each, fully paid-up.

This marks a milestone move, aimed at enhancing liquidity, widening its shareholder base, and improving accessibility, particularly for small investors.

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