1:5 Stock Split: Gautam Adani-backed power company signs PSA with Bihar State Power Generation Company Ltd for supply of 2400 MW of power

DSIJ Intelligence-1 / 15 Sep 2025/ Categories: Multibaggers, Trending

1:5 Stock Split: Gautam Adani-backed power company signs PSA with Bihar State Power Generation Company Ltd for supply of 2400 MW of power

The stock is up by 55 per cent from its 52-week low of Rs 430.85 per share and has given multibagger returns of over 1,600 per cent in 5 years.

Adani Power Ltd, India's largest private sector thermal power generator, has signed a 25-year Power Supply Agreement (PSA) with Bihar State Power Generation Company Ltd. (BSPGCL) for the supply of 2,400 MW of power from a greenfield ultra supercritical plant to be set up at Pirpainti in Bhagalpur district of Bihar. This is further to the LoA awarded by BSPGCL to APL, on behalf of North Bihar Power Distribution Company Ltd (NBPDCL) and South Bihar Power Distribution Company Ltd (SBPDCL) in August.

Adani Power won the project by offering the lowest supply rate at Rs 6.075 per kWh. The company plans to invest approximately USD 3 billion to build the new plant (800 MW X 3) and its supporting infrastructure under the design, build, finance, own and operate (DBFOO) model. The coal linkage for the power plant has been allocated under the SHAKTI Policy of the Government of India. The project will generate direct and indirect employment of 10,000 – 12,000 during the construction phase and 3,000 once in operation. The company aims to fully commission the plant in 60 months.

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, to provide 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 55 per cent from its 52-week low of Rs 430.85 per share and has given multibagger returns of over 1,600 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.