Jaiprakash Power Share: Shares of debt-ridden Jaypee Group company Jaiprakash Power Ventures Limited (JP Power) are witnessing tremendous growth on Thursday. This rally of JP Power shares has been going on for the last two days. In early trade, the stock jumped 10.5 percent and was seen trading at the level of Rs 22.4. On Wednesday, the stock had gained up to 14.91 percent. That means overall the stock has risen by 27 percent in two sessions.

Why is there a rise in shares?

There is a reason behind this rise in shares. Actually, Adani Group company Adani Enterprises has received approval for its resolution offer from the Committee of Creditors (CoC) of Jaiprakash Associates. Adani Enterprises said on Wednesday evening that it had received a letter of intent from the resolution professional on November 19, confirming that lenders have voted in favor of its proposal under the Insolvency and Bankruptcy Code.

How did Adani overtake Vedanta?

Jaiprakash Associates has 24 percent stake in JP Power, hence the market expects the company to make profit from this deal.

In the electronic auction held in September, mining sector giant Vedanta had become the highest bidder with an offer of Rs 17,000 crore, but lenders ultimately preferred Adani’s plan because of the upfront payment, while its net present value is about Rs 500 crore less.

Adani has also been given the highest evaluation out of 100 in a score sheet distributed among creditors. However, some lenders had raised questions on the scoring method. JAL owes around Rs 55,000 crore to lenders and was included in the insolvency proceedings in June 2024.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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JP Power Share: Amazing rise is being seen in the shares of Jaiprakash Power Ventures (JP Power) today. In intraday trading, the shares jumped by 9 percent and were seen trading at the level of Rs 18.63. There is a reason behind this rise in shares today.

Why did Power Share become Rocket?

In fact, there are reports that Adani Group may defeat mining sector major Vedanta in the race to buy bankrupt infrastructure company Jaiprakash Associates (JAL). In the same sequence, small-cap share JP Power’s share on National Stock Exchange (NSE) and BSE rose by 9.12 percent to reach the day’s high of Rs 19.25.

Bankrupt Jaiprakash Associates has about 24 percent stake in JP Power. In such a situation, the market is hopeful that if Adani Group wins the bidding race, then it will bring profit to JP Power’s business in the market.

How did Adani defeat Vedanta?

First of all, when the auction was held in September to find a buyer for debt-ridden JP Associates, Vedanta was at the forefront of the race by bidding Rs 17,000 crore. Vedanta proposed to pay it in five years, whereas Adani Enterprises Limited, although bid Rs 12500 crore, has proposed to pay in two years. Perhaps it is believed that the company will ultimately fall into Adani’s lap because the Committee of Creditors (CoC) of JAL is considering Adani Group’s proposal to be better than Vedanta Group’s proposal. JAL’s business is spread across many big sectors like real estate, cement, power, hotels and roads.

Jaypee Infra MD arrested

Recently, Manoj Gaur, Managing Director of JP Infratech Limited, another company of Jaypee Group, has been arrested by ED in a case related to money laundering. ED alleges that Jaiprakash Associates, through Manoj Gaur, has committed a fraud of Rs 12,000 crore and embezzled the money of home buyers.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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