JP Power share price: Shares of Jaiprakash Power Ventures (JP Power) have surged 28% in July so far after media reports suggested that Adani Group, led by billionaire entrepreneur Gautam Adani, has emerged as the highest bidder to acquire Jaiprakash Associates (JP Associates).
Acquisition by a well-managed and financially strong Adani group not only bodes well for the company but also for JP Power, wherein JP Associates holds a 24% stake.
G. Chokkalingam, Founder & Head of Research, Equinomics Research, said that an acquisition by a powerful entity of JP Associates will be complimentary to the other group entities. He added that it makes sense for the Adani Group to acquire JP Associates, and consequently, JP Power, as it would be complementary to the Adani Group because JP Associates has the cement and power businesses.
"Not being content with the 24% stake via JP Associates, they should — logically speaking — try for majority control in JP Power also, because it is aligned with their own business model," Chokkalingam added.
According to a Business Standard report last Friday, Adani Group's bid for JP Associates stands at ₹12,500 crore. Vedanta, JSPL, Surakasha Group, Dalmia Bharat and PNC Infratech are among other potential buyers who submitted bids for JP Associates. Meanwhile, another The Economic Times report on July 8 said the Adani group has emerged as the only bidder without conditions in the race to acquire Jaiprakash Associates.
In April, as many as 25 companies showed interest to acquire JP Associates.
JP Associates, which has business interests spanning real estate, cement manufacturing, hospitality, and engineering & construction, was admitted into the Corporate Insolvency Resolution Process (CIRP) through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024.
The company was taken to insolvency proceedings after the conglomerate defaulted on the payment of loans. Creditors are claiming a staggering ₹57,185 crore.
Meanwhile, JP Power has extended a corporate guarantee (CG) to JP Associates' external commercial borrowing of $150 million from the State Bank of India (which is now converted to a rupee term loan).
While the CG was to be released as per the framework agreement signed between JP Power and its lenders in April 2019, the same has not yet been released. According to India Ratings & Research, the insolvency outcome for JP Associates will be closely watched in the context of JP Power too.
The company last week reported an over 73% decline in net profit to ₹155.67 crore for the March 2025 quarter due to lower income. It had posted ₹588.79 crore net profit during the January-March period of the preceding 2023-24 fiscal, the company said in an exchange filing.
The company's total income shrank to ₹1,366.67 crore from ₹1,863.63 crore in the year-ago quarter. For the entire FY25, the net profit was down at ₹813.55 crore against ₹1,021.95 crore in January-March FY24, according to a PTI report.
JP Power share price has surged to ₹23.52 on the NSE from the June 30 closing price of ₹18.30, giving investors 28.5% returns during this period. In the seven sessions in July so far, JP Power share has gained in four, with the biggest rally seen on Monday, with a near 20% jump.
Meanwhile, the stock has been in a steady uptrend for the five months straight, since March 2025.
(With inputs from PTI)
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