JP Power Shares Jump 10% After Lenders Approve Adani's Takeover Plan for JP Group

Jaiprakash Power Ventures (JP Power) shares surged over 10% after lenders approved Adani Enterprises’ takeover plan for its debt-ridden former promoter, Jaiprakash Associates (JAL). JAL holds a 24% stake in the power company.

Shares of Jaiprakash Power Ventures Ltd (JP Power) surged over 11% on Thursday (November 20), as investors cheered fresh clarity over the future of the debt-hit Jaypee Group. The rally came after lenders to Jaiprakash Associates Ltd (JAL), the former promoter of JP Power, approved Adani Enterprises' takeover plan for the bankrupt conglomerate.

JP Power, which opened at Rs 22.37, spiked more than 10% in early trade, with market sentiment turning optimistic following the resolution vote. JAL currently holds around 24% stake in JP Power, making the development crucial for the company's future.

What Triggered the Rally? Adani's Bid Gets the Green Light

The jump in the stock price followed Adani Enterprises' announcement that creditors had voted in favour of its proposal to acquire JAL, which owes lenders a massive Rs 57,000 crore.

Under the plan, Adani has offered a resolution package worth Rs 14,535 crore, including:

• Rs 6,005 crore upfront payment
• Remaining amount to be cleared within 1.5–2 years

Sources indicated that Adani's offer was chosen over Vedanta's Rs 16,700 crore plan primarily because of faster and higher upfront recoveries. Vedanta reportedly sought a longer, five-year payment window, a timeline lenders were unwilling to accept.

NARCL Leads the Process; Other Bidders Edge Out

The transaction is being handled by the National Asset Reconstruction Company Ltd (NARCL), which had earlier acquired JAL's loans from a consortium led by State Bank of India.

Several major companies, including Dalmia Bharat, Jindal Power and PNC Infratech, were in the race for the takeover. A last-minute bid by JAL's promoter Manoj Gaur was also withdrawn, clearing the path for Adani.

What Happens Next? NCLT Approval Awaited

With the Committee of Creditors (CoC) voting in favour, the final resolution plan will now be sent to the National Company Law Tribunal (NCLT) for approval. If cleared, it would mark one of the largest insolvency resolutions under India’s bankruptcy code.

JP Power Stock Outlook: Volatile but Stronger

JP Power shares have been swinging wildly in recent weeks but remain significantly above their 52-week low of Rs 12.35. Investors are betting that a financially stronger promoter like Adani could bring much-needed stability and revival prospects for the group's power business.