Jaiprakash Power Ventures Shares Rally 27% as Adani Plan for JAL Gets CoC Approval

Jaiprakash Power Ventures Ltd. (JP Power) witnessed a strong market rally over two sessions as investors reacted to the Committee of Creditors (CoC) approving Adani Enterprises’ resolution plan for Jaiprakash Associates (JAL).

Stock Jumps 27% in Two Days

JP Power continued its upward momentum on Thursday, trading at ₹22.4 in morning deals, up 10.5% for the day.
The stock had already climbed 14.91% on Wednesday, pushing its two-session gain to 27%.

This sharp rally reflects investor optimism following the approval of Adani Enterprises’ resolution offer for JAL.

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CoC Clears Adani Enterprises’ Offer for JAL

The surge comes after Adani Enterprises confirmed receiving a Letter of Intent on November 19, indicating that lenders had voted in favour of its resolution plan under the Insolvency and Bankruptcy Code.

Jaiprakash Associates, the flagship company of the Jaypee Group, is currently undergoing insolvency proceedings and holds a 24% stake in JP Power.
This link between the two companies has triggered expectations of positive spillover effects for JP Power if Adani Group ultimately gains control or influence over JAL.

Competitive Bidding: Adani vs Vedanta

The approval also follows a competitive bidding process:

• Vedanta had emerged as the highest bidder in a September e-auction with a ₹17,000 crore offer.

• Lenders, however, preferred Adani’s plan, citing higher upfront payments, even though its net present value was around ₹500 crore lower.

• A creditor score sheet had assigned Adani the highest evaluation out of 100, though some lenders questioned the scoring criteria.

Jaiprakash Associates owes lenders about ₹55,000 crore and entered insolvency proceedings in June 2024.

Market View: Potential Indirect Benefits for JP Power

Market participants believe the CoC’s approval could indirectly benefit JP Power as:

• Adani may eventually gain influence over JAL’s shareholding,

• Investors expect stronger balance-sheet positioning,

• Improved management oversight,

• And a brighter medium-term outlook for JP Power.

The resolution plan will now be reviewed by the National Company Law Tribunal (NCLT), Allahabad Bench, along with other regulatory bodies.

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