Why Adani Power Stock Is Rising? Major Factors

Adani Power Stock: Coal, gas, solar, wind, hydro, nuclear, and other energy sources are all part of India’s varied power industry. The electricity demand is rapidly increasing and is predicted to continue doing so. Recently, there has been a rising trend in the power sector. Adani Power has been one particularly noteworthy performer. Investors took notice of the company’s share price, which jumped by a startling 20% today. Let’s now understand why Adani Power’s share price is rising.

There are mainly two reasons for the stock price increasing rapidly. One reason is because of the stock split, and the other reason is that FII (Foreign Institutional Investor) and mutual funds are increasing their stake. Let us now understand what these two reasons are in detail:

1. Stock Split:

After the company’s shares became ex-date for a stock split today, with a ratio of 1:5, lowering the face value from Rs 10 to Rs 2 per share, Adani Power’s shares surged 20%. 22 September 2025 was designated as the record date for estimated eligibility for bonus equity shares.

Making the shares more accessible and inexpensive for individual investors was the primary driver behind the change. The corporation wants to increase trading activity, draw in new investors, and improve liquidity by lowering the price per share and increasing the number of units in circulation. The market value of the business doesn’t change.

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2. FII (Foreign Institutional Investor) and mutual funds Rise:

Another main reason for the Adani stock price increasing is because of FII (Foreign Institutional Investor) and mutual funds increasing their stake. The December 2024 quarter saw FII selling, but the March 2025 quarter saw a reversal as FIIs started to increase their investment. Then, from 12.3% in March 2025 to 12.4% in June 2025, FII holdings increased once more. Recently, the stock has also been purchased by mutual funds. In June 2025, mutual funds’ stake increased slightly from 1.6% in March 2025 to 1.7%.

Apart from these two reasons, investors are also betting on EV manufacturing, as the market is already rising rapidly; this might also be one of the reasons for the stock price surge. Over all Adani Power is planning to increase the capacity and also upgrade the technology as per the demand growth in the market. These are the reasons why the Adani Power share price is rising.