Shares of Jaiprakash Power Ventures Ltd. continued their remarkable upswing this week and jumped nearly 30 percent in two days after Adani Enterprises secured overwhelming creditor approval to acquire Jaiprakash Associates Ltd. The stock extended Wednesday’s sharp rally, surging to an intraday high of ₹22.80 in a sign of renewed investor confidence in the future of the Jaypee Group’s power arm.
The surge comes after the news that Adani Enterprises received almost 89% of the creditor votes for its ₹14,535-crore resolution plan for JAL. Its bid was preferred over other competing offers by Vedanta and Dalmia Bharat, mainly due to its faster payout structure and higher upfront commitment. The Adani proposal is, therefore, expected to be the most value-accretive solution for lenders and stakeholders, considering that repayment would be completed in 1.5 to 2 years.
This approval is even more important for JP Power, considering that JAL owns nearly 24 percent of the stake in the firm. Traders estimate that the entry of Adani could facilitate better governance, smoother operations, and an improved balance sheet for JP Power once the deal is actually consummated. The expectation has triggered solid buying interest throughout the past couple of sessions, propelling the stock toward multi-month highs.
The recent rally also marks a dramatic turnaround from the stock’s earlier slump. From a 52-week low of ₹12.35, JP Power has now recovered sharply, up 46% in just seven sessions, having nearly doubled from its May lows. The sharp rise has also resulted in high trading volumes, indicating strong participation from retail and institutional investors alike. Technical indicators, however, suggest that the stock may be running hot, with the Relative Strength Index moving above 74, hinting at possible short-term profit-booking.
Meanwhile, amidst market fervor, the company is also forging ahead with its renewable energy plans. JP Power’s board has given the go-ahead for a 50 MW solar photovoltaic plant at its Bina facility in Madhya Pradesh, an investment of about ₹300 crore. The expansion into solar energy is being viewed as a strategic step that could strengthen the company’s long-term earnings profile and reduce dependence on conventional power operations.
While analysts remain optimistic, the final outcome is subject to regulatory clearances, including the approval from the National Company Law Tribunal. Any delay in the process would add volatility to the stock. But for now, optimism on the Adani-JAL deal and JP Power’s renewed strategic push has positioned the company firmly back in investor focus.
