JP Power Shares Surge 24% In a Week; Here’s What Sparked the Rally

Shares of Jaiprakash Power Ventures (JP Power) have been hogging the limelight in the past week with it near 24% surge. The rally in the stock came on the back of two major triggers: buzz over the Adani Group eyeing to acquire its parent company and positive signals from the company’s Annual General Meeting (AGM).

Investor sentiment bolstered after reports suggested that Adani Group had emerged as the frontrunner in the race to acquire Jaiprakash Associates (JAL), the promoter of JP Power with a 24% stake in the company. JAL, currently undergoing corporate insolvency proceedings, owes creditors over ₹57,000 crore and has attracted interest from several bidders including Vedanta, Dalmia Bharat, and others.

According to an NDTV Profit report citing sources, the Adani Group has submitted the top bid of ₹14,000 crore for JAL’s assets, which include several high-profile real estate holdings such as the Jaypee Greens township in Greater Noida, the 1,063-acre Wish Town, and the Jaypee Sports City along the Yamuna Expressway. These assets are seen as key to Adani’s infrastructure and urban expansion strategy.

The insolvency resolution process is currently being overseen by a committee of creditors that includes heavyweights like SBI, ICICI Bank, and LIC.

Meanwhile, JP Power’s AGM on July 5 also offered fresh impetus. Shareholders approved key resolutions, including the reappointment of directors and remuneration packages for executive and non-executive board members as well as the cost advisor. The meeting was seen as a move towards stronger governance and financial clarity.

In Friday’s trade, the stock hit its 20% upper circuit, closing at ₹22.65 on the NSE. Trading volumes exploded, with over 104 crore shares exchanging hands, a massive jump from the one-month average of just 15 crore.

The combination of takeover optimism and AGM takeaways appears to have injected fresh momentum into JP Power, though the road ahead will hinge on how the JAL resolution unfolds.