Jaiprakash Power Ventures shares surge 27% in two sessions on Adani Enterprises-Jaiprakash Associates resolution plan

Jaiprakash Power Ventures Ltd.’s share price continued its sharp rally on Thursday, trading at Rs 22.4 in morning deals, up 10.5 percent for the day. The stock had soared 14.91 percent on Wednesday, taking its cumulative gains to 27 percent over two sessions.

The latest surge in Jaiprakash Power Ventures share price comes after the Gautam Adani-led group received approval from the Committee of Creditors (CoC) of Jaiprakash Associates for its resolution offer. Adani Enterprises disclosed on Wednesday evening that it had received a Letter of Intent from the resolution professional on November 19, confirming that lenders had formally voted in favour of its proposal under the Insolvency and Bankruptcy Code.

The market reaction stems from the interconnected nature of the Jaypee Group entities. Jaiprakash Associates, the flagship company currently undergoing insolvency proceedings, holds a 24 percent stake in Jaiprakash Power Ventures. With the CoC clearing Adani’s plan, investors are assessing the potential spillover effects on JP Power if control or influence over JAL ultimately shifts to the Adani Group.

• Also read | Adani Enterprises shares rise 1% today as Jaiprakash Associates creditors clear Rs 14,500-crore resolution plan

Vedanta had emerged as the highest bidder in a September electronic auction with an offer of Rs 17,000 crore, but lenders ultimately preferred Adani’s plan owing to higher upfront payments, despite its net present value being around Rs 500 crore lower. A score sheet circulated among creditors had also assigned Adani the highest evaluation out of 100, though some lenders questioned the scoring methodology. JAL owes lenders about Rs 55,000 crore and was admitted into insolvency proceedings in June 2024.

Given this context, market participants view the CoC decision as a development that could indirectly benefit JP Power. Investors may expect stronger balance-sheet positioning, improved management oversight and a brighter medium-term outlook if Adani eventually gains influence via JAL’s shareholding. The resolution plan now awaits review by the National Company Law Tribunal’s Allahabad Bench and other regulatory authorities.

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