1:5 Stock Split: Gautam Adani-backed power company receives LoI to develop and operate 2400 MW greenfield thermal power plant in Bihar
DSIJ Intelligence-1 / 07 Aug 2025/ Categories: Multibaggers, Trending
The stock is up by 45 per cent from its 52-week low of Rs 430.85 per share and has given multibagger returns of over 1,500 per cent in 5 years.
Adani Power Ltd, India's largest private sector thermal power generator, has received a Letter of Intent (LoI) from Bihar State Power Generation Company Ltd. (BSPGCL) to develop and operate a 2,400 MW greenfield thermal power plant in Pirpainti village, Bhagalpur district, Bihar. Adani Power emerged as the lowest bidder in a competitive tender, quoting a tariff of Rs 6.075 per unit. The project, entailing an investment of approximately $3 billion, will involve setting up a 3x800 MW Ultra-supercritical power plant under the Design, Build, Finance, Own, and Operate (DBFOO) model, with the entire net capacity of 2,274 MW to be supplied to Bihar Utilities.
The commissioning of the first unit is targeted within 48 months of the appointed date, and the final unit within 60 months. Fuel for the plant will be sourced from an allocated coal linkage under the Government of India's SHAKTI Policy. This significant project is expected to generate substantial employment, with an estimated 10,000 to 12,000 direct and indirect jobs during the construction phase and around 3,000 jobs once the plant is operational. Adani Power anticipates receiving the formal Letter of Award (LoA) soon, followed by the execution of a Power Supply Agreement (PSA) with the state utilities.
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About the Company
Adani Power Ltd (APL), a prominent entity within the diversified Adani Group, stands as India's largest private thermal power producer. The company, along with its subsidiaries, is strategically involved in power generation, transmission, distribution, and renewable energy. APL's business model primarily revolves around selling electricity generated from its projects through a blend of long-term Power Purchase Agreements (PPAs) with state electricity boards and industrial consumers, supplemented by short-term PPAs and merchant sales, often leveraging its in-house coal logistics capabilities. This comprehensive approach underscores Adani Power's significant role in India's energy landscape.
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 45 per cent from its 52-week low of Rs 430.85 per share and has given multibagger returns of over 1,500 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.