1:5 Stock Split: Gautam Adani-backed power company receives LoA for the 2,400 MW greenfield thermal power plant in Bihar
DSIJ Intelligence-1 / 29 Aug 2025/ Categories: Multibaggers, Trending
The stock is up by 40 per cent from its 52-week low of Rs 430.85 per share and has given multibagger returns of over 1,400 per cent in 5 years.
Adani Power Ltd., India's largest private sector thermal power generator, has received a Letter of Award (LoA) for 25 Years long term procurement of electricity from Bihar State Power Generation Company Ltd (BSPGCL), which it will supply from a 2,400 MW (800 MW X 3) greenfield ultra super critical plant to be set up at Pirpainti in Bhagalpur district of Bihar. BSPGCL awarded the LoA to APL on behalf of North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL), the two state utilities. This would be followed by the signing of the Power Supply Agreement (PSA) between the entities.
India’s power demand is expected to grow rapidly in the coming years, with peak demand rising from the current 250 GW to 400 GW by 2031-32, and 700+ GW by 2047, propelled by rapid industrialisation, urbanisation, and a growing population. Thermal power, with its inherent ability to provide large-scale, reliable, and round-the-clock power, will continue to remain the backbone of our energy security, providing critical base-load and grid balancing support. To meet this ever-increasing power demand, the government has envisaged an additional ~100 GW of thermal capacity to be added by 2035.
Earlier, Adani Power had emerged winner in a tightly contested tariff-based competitive Bidding process called by BSPGCL, offering the lowest supply price of Rs 6.075 per kWh. The company will invest USD 3 billion in setting up the plant and the related infrastructure. The project will generate direct and indirect employment of 10,000 – 12,000 during the construction phase and 3,000 once in operation.
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About the Company
As the largest private thermal power producer in India, Adani Power (APL) operates with a total installed capacity of 18,110 MW across twelve thermal power plants and one 40 MW solar plant. The company's facilities are located in multiple states, including Gujarat, Maharashtra, Karnataka, and Rajasthan. Adani Power leverages technology and a team of experts to help transform India into a power-surplus nation, with the goal of providing affordable and reliable electricity nationwide.
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The Board of Directors of the company approved the sub-division/ stock split of the existing 1 equity share of the company having a face value of Rs 10 each, fully paid-up, into 5 equity shares having a face value of Rs 2 each, fully paid-up, subject to approval of the shareholders of the company.
The company has a market cap of over Rs 2 lakh crore and has delivered good profit growth of 65.3 per cent CAGR over the last 5 years. The shares of the company have a PE of 18x, an ROE of 26 per cent and an ROCE of 23 per cent. The stock is up by 40 per cent from its 52-week low of Rs 430.85 per share and has given multibagger returns of over 1,400 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.