JP Power share price extends rally, zooms 27% in two days. Is Adani takeover of JAL a likely trigger behind the surge?

Shares of Jaiprakash Power Ventures (JP Power) extended gains to the second day on Thursday, November 20, amid reports that Adani Group will likely pip metal and mining major Vedanta to acquire bankrupt infrastructure firm Jaiprakash Associates (JAL).

Small-cap stock JP Power gained as much as 12% to hit the day's high of ₹22.79 on the National Stock Exchange (NSE). In a span of two days, the stock has gained over 27%.

Analysts had earlier told Mint that acquisition by a well-managed and financially strong Adani group not only bodes well for JAL but also for JP Power, wherein JP Associates holds a 24% stake.

"The sharp upmove in JP Power Ventures shares reflects investor optimism surrounding reports that Adani Group has emerged as the front-runner to acquire Jaiprakash Associates. Since JAL holds around a 24% stake in JP Power, the market is anticipating that a successful resolution involving a financially strong sponsor like Adani could unlock meaningful value for JP Power’s underlying business," said Harshal Dasani, Business Head, INVAsset PMS.

Investors are factoring in expectations of improved balance-sheet strength, management efficiency, and renewed growth prospects for JP Power if Adani indirectly gains control or influence through JAL’s stake.

"The rally, therefore, is a reflection of forward-looking optimism rather than near-term fundamentals. While this development marks a critical step towards restructuring JAL’s assets, clarity on deal contours, creditor approvals, and the eventual treatment of JAL’s holdings in JP Power will determine whether this optimism is sustained," Dasani added.

Adani likely wins creditor nod for takeover of JAL

According to multiple media reports, creditors to JP Associates opted for Adani's bid over Vedanta's despite it being lower in value.

While Vedanta's bid of ₹17,000 crore is higher than Adani's ₹13,500 crore, creditors, mostly Indian banks, opted for Adani because it included larger upfront payments preferred by stakeholders, as per a Reuters report.

Vedanta’s bid proposed a five-year payment timeline—significantly longer than the 1.5–2 years offered by Adani—which influenced creditor preferences.

Besides Adani and Vedanta, other bidders included Dalmia Bharat, Jindal Power, and PNC Infratech. Controlling shareholder Manoj Gaur had also submitted a last-minute bid, but later withdrew it.

Adani Power: Technical outlook

In technical terms, Anshul Jain, Head of Research at Lakshmishree, said that JP Power is shaping a strong 22-month rounding bottom on the monthly chart, signalling a structural shift in momentum.

“The stock has lifted cleanly off the 10-month moving average after four months of tight, controlled closes — a sign of steady accumulation rather than speculative spikes. This kind of base formation often precedes meaningful trend expansion. A sustained move above ₹20 will be the key trigger, opening the way toward the ₹24–26 zone, which remains the first major supply area. If volumes expand on the breakout, the stock could enter a stronger trending phase as long-term participants step in,” Jain added.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.