Adani Power shares jump 2% after Nagpur coal mine nod

Shares of Adani Power jumped 2.2% to their intraday high of Rs 647.55 on the BSE on Thursday after the company secured regulatory approval for an underground coal mining project in Nagpur, adding to investor enthusiasm already fueled by a new hydroelectric venture in Bhutan and the firm’s first-ever stock split.

The Coal Controller's Organisation has cleared Adani Group’s underground mining project at Gondkhairi in Nagpur district. Adani Power Maharashtra Ltd had won the block in a competitive bidding process conducted by the coal ministry.

The project is expected to create about 860 direct and nearly 1,600 indirect jobs. Approval is subject to conditions, including securing surface rights over the proposed area before operations begin to ensure safety. The mine has a rated capacity of 2 million tonnes per annum with an estimated life of 30 years, including construction. It comprises four coal seams at depths ranging from 169 to 394 metres.

Hydroelectric push in Bhutan

Over the weekend, Adani Power signed a shareholders’ agreement with Bhutan’s state-owned Druk Green Power Corp (DGPC) to develop a 570 MW hydroelectric project at Wangchhu. A public company will be jointly incorporated in Bhutan, with Adani Power holding 49% and DGPC 51%.

Both parties will appoint three directors each, with provisions for future capital contributions proportionate to shareholding. The initial capital will comprise 4.9 million shares for Adani Power and 5.1 million shares for DGPC, issued at BTN 100 per share.

First-ever stock split

Last week, shareholders approved Adani Power’s first stock split since listing. Each Rs 10 equity share will be subdivided into five fully paid-up shares of Rs 2 each. Market participants say the move aims to enhance liquidity, widen the shareholder base, and improve accessibility for retail investors.

Market performance

Adani Power shares have surged 8% in the past three sessions, closing at Rs 633.45 on Wednesday. The stock is up 20% so far in 2025.

Analysts point to upcoming goods and services tax reforms, due September 22, as an additional catalyst. Removal of the compensation cess on coal could reduce landed coal costs by 8–10%, translating into a tariff benefit of Rs 0.10–0.12 per unit under long-term contracts and boosting margins.

Technical strength

The stock is trading above all eight key simple moving averages, from the 5-day to the 200-day lines. The Relative Strength Index stands at 72.3, signaling overbought conditions, while the Moving Average Convergence Divergence remains above both the center and signal lines, underscoring short-term momentum.

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