Jaiprakash Power shares rally 29% in two days after Adani Group wins bids to acquire JP Associates

Shares of Jaiprakash Power Ventures (JP Power) surged over 12% in early trade on Thursday, extending their rally for the second straight session after creditors of Jaiprakash Associates Ltd (JAL) approved the Gautam Adani-led group’s resolution plan. Adani Enterprises, the flagship of the Adani Group, received approval from the Committee of Creditors (CoC) for its offer, the company said in an official filing.

Adani secured 89% creditor approval, beating Vedanta and Dalmia Bharat, primarily because of its more attractive payment structure, according to an analyst.

JAL, an associate company and major shareholder in JP Power with about a 24% stake, was admitted into insolvency by the Allahabad Bench of the National Company Law Tribunal (NCLT) on June 3, 2024. JAL, which owes nearly ₹57,185 crore, entered insolvency after the NCLT admitted petitions filed by both ICICI Bank and State Bank of India (SBI) . ICICI Bank had originally initiated the insolvency plea in 2018, but the case gained momentum only after the tribunal formally admitted it in mid-2024.

Following the approval of the resolution plan, JP Power shares jumped as much as 12.25% to ₹22.80 on the BSE. Adani Enterprises also rose up to 2% to ₹2,479.85, pushing its market capitalisation to ₹3.17 lakh crore. JP Power had closed 15.14% higher at ₹20.31 in the previous session, taking its two-day gain to over 29%. At the time of writing, the stock was up 8.76% at ₹22.09, valuing the company at ₹15,139 crore.

The stock has remained volatile this year, hitting a 52-week high of ₹27.62 on July 14, 2025, and a 52-week low of ₹12.35 on March 3, 2025. Year-to-date, it has gained 22%, delivering a strong 48% return over six months and 22.5% in the past month.

Resolution plan subject to approvals

In its filing last evening, Adani Enterprises said, “the committee of creditors of Jaiprakash Associates, a company undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016, has approved the resolution plan submitted by Adani Enterprises Limited (AEL).”

The release noted that implementation of the plan remains subject to the terms of the letter of intent (LOI) and approvals from the NCLT—Allahabad Bench—as well as other regulatory authorities, courts, or tribunals, as required. The plan may be executed by AEL, its promoters, promoter group, other Adani Group entities, or through one or more special purpose vehicles (SPVs) or nominees identified by AEL.

Analyst on the Adani–JAL deal

Abhinav Tiwari, Research Analyst at Bonanza, described the acquisition as “a major turning point for both companies and their stakeholders,” highlighting that the ₹14,535-crore deal gives the debt-ridden JP group a long-awaited revival plan. Adani secured 89% creditor approval, ahead of Vedanta and Dalmia Bharat, largely because of its superior payment structure. “Creditors preferred Adani because it offered a higher upfront payment of ₹6,005 crore, with the balance to be cleared within two years,” Tiwari said.

He noted that while Vedanta’s total bid size was higher, “its five-year staggered payout made it far less appealing. Lenders clearly prioritised quicker recovery over a higher but delayed offer.”

JAL, which owes nearly ₹57,185 crore, owns key assets such as cement plants, limestone mines, and power, real estate, and infrastructure projects. “These are high-quality assets that simply needed the backing of a financially strong and operationally capable promoter,” Tiwari said. “With Adani stepping in, the chances of reviving and scaling these businesses improve significantly.”

He added that the acquisition aligns with Adani’s broader expansion strategy. “For Adani, this is not just a distressed acquisition; it strengthens the group’s footprint in cement, power, and infrastructure. The willingness to make a large upfront payment shows the group’s confidence in turning around stressed but strategically important assets.”

On investor impact, Tiwari said, “For Jaiprakash investors, this acquisition is a lifeline. A strong promoter group stepping in improves the outlook for operations, profitability, and eventual debt reduction.” For Adani shareholders, he said the deal brings new growth avenues but also integration challenges. “Integrating a stressed company always carries execution risk. But the near-term cash-flow clarity for creditors and the long-term strategic fit for Adani make this a win-win situation.”

Tiwari added that the development as “a strategic victory for Adani and a crucial rescue plan for Jaiprakash,” setting the stage for a potential turnaround in the JP Group’s cement and infrastructure businesses.

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