Jaiprakash Power Ventures (JP Power) shares spiked over 13% (and rose as much as 17% intraday) on Monday, in a continuation of the rally seen over the past two sessions.
What’s Driving the Momentum?
- Adani Group Emerges as Top Bidder
- Media reports indicate that the financially robust Adani Group has placed the highest bid (~₹12,500 crore) for Jaiprakash Associates — JP Power’s parent, which holds 24% stake in it.
- Analysts suggest that Adani acquiring JP Associates could naturally extend to acquiring JP Power itself, due to strong business synergy in cement and power sectors.
- Sound Corporate Governance & AGM Boost
- JP Power’s 30th AGM, held via video conferencing on July 5, saw strong shareholder engagement across key resolutions. The company emphasized financial discipline and future growth—enhancing investor confidence.
- Technical indicators also flashed bullish signals: the stock remains above all major moving averages, though some caution arises with Relative Strength Index (RSI) nearing overbought levels.
- Capital Structure & Insolvency Context
- JP Power has provided a ₹150 million guarantee to JP Associates for its external borrowings from SBI, now converted to a term loan.
- JP Associates is under the NCLT-led insolvency process initiated on June 3, 2024, with a total debt of ₹57,185 crore.
Financial Snapshot
| Period | Net Profit (₹ crore) | Revenue (₹ crore) |
|---|---|---|
| Q4 FY25 | 155.67 (↓73% YoY) | 1,366.67 (↓27%) |
| FY25 Total | 813.55 (↓20%) | — |
A sharp drop in both profit and revenue year-over-year weighed on results
Market Reaction & Technical
- Stock rose from ₹18.95 to intraday highs of ₹21.80, approaching its 52-week peak of ₹23.77.
- Over 1 year: +17%, 2 years: +248%, and 5 years: +907% gains.
Watch: JP Power Surge Explained
Takeaway
Strong acquisition rumors linked to Adani, a well-conducted AGM, and solid technicals have propelled JP Power, despite weak earnings. The key thing to watch now is Adani Group’s bid—if it advances, this rally could gain even more steam.
Reference is taken from here
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