JP Power share price:
According to media reports, the Adani Group, led by billionaire entrepreneur Gautam Adani, has emerged as the highest bidder to acquire Jaiprakash Associates (JP Associates). This led to a 15% intraday trading surge in shares of Jaiprakash Power Ventures (JP Power) on Monday, continuing their rally for the second consecutive session.
The company and JP Power, in which JP Associates owns a 24% share, both stand to benefit from the acquisition by the financially sound and well-run Adani group.
The other group entities will benefit from an acquisition by a strong JP Associates entity, according to G. Chokkalingam, Founder & Head of Research, Equinomics Research. He went on to say that since JP Associates owns the cement and power industries, it makes sense for the Adani Group to buy JP Associates and, by extension, JP Power, since it would complement the Adani Group.
Chokkalingam further stated, “They should logically pursue majority control in JP Power, as it is consistent with their business model, in addition to the 24% stake they currently hold through JP Associates.”
A Business Standard article from last Friday stated that the Adani Group is offering ₹12,500 crore for JP Associates. Other possible purchasers of JP Associates that put forward bids were Vedanta, JSPL, Surakasha Group, Dalmia Bharat, and PNC Infratech.
Up to 25 businesses expressed interest in purchasing JP Associates in April.
In an order dated June 3, 2024, the National Company Law Tribunal, Allahabad Bench, allowed JP Associates, a company with operations in real estate, cement manufacture, hospitality, and engineering and construction, into the Corporate Insolvency Resolution Process (CIRP).
The company entered insolvency proceedings when the conglomerate failed to make loan payments. Creditors are demanding an incredible 57,185 crore.
A corporate guarantee (CG) has been granted by JP Power to JP Associates for their $150 million external commercial borrowing from the State Bank of India, which has since been converted to a rupee term loan.
According to the framework agreement that JP Power and its financiers signed in April 2019, the CG was supposed to be released, but that hasn’t happened yet. India Ratings & Research will closely monitor the insolvency decision for JP Associates in relation to JP Power.
Power Financials, JP
Due to decreasing revenue, the company last week recorded a net profit decline of more than 73% to ₹155.67 crore for the March 2025 quarter. According to an exchange filing, the company reported a net profit of ₹588.79 crore for the January–March period of the previous fiscal year, 2023–24.
The company’s overall revenue decreased from ₹1,863.63 crore in the previous quarter to ₹1,366.67 crore. According to a PTI report, the net profit for the full FY25 was ₹813.55 crore, down from ₹1,021.95 crore for the January–March FY24 period.
Trend in the Price of JP Power Shares
At ₹19, the price of JP Power’s shares opened higher than its previous closing of ₹18.95 on the BSE. The stock quickly surged more than 15% to reach the day’s peak of ₹21.80 per share. The price of JP Power shares is getting close to its 52-week high of ₹23.77 thanks to today’s rise.
The stock of JP Power has increased by 17% in the last year, 248% in the last two years, and 907% in the last five years, giving investors multibagger returns.
