JP Power share price has surged 27% in just two sessions, boosting investor excitement. Market chatter suggests that a potential Adani takeover of Jaiprakash Associates (NSE: JPASSOCIAT) could be the key trigger behind this sharp rally. Here’s the full market update.
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Shares of Jaiprakash Power Ventures (JP Power) extended gains to the second day on Thursday, November 20, amid reports that Adani Group will likely pip metal and mining major Vedanta to acquire bankrupt infrastructure firm Jaiprakash Associates (JAL).
Small-cap stock JP Power gained as much as 12% to hit the day’s high of ₹22.79 on the National Stock Exchange (NSE). In a span of two days, the stock has gained over 27%.
Analysts had earlier told Mint that acquisition by a well-managed and financially strong Adani group not only bodes well for JAL but also for JP Power, wherein JP Associates holds a 24% stake.
“The sharp upmove in JP Power Ventures shares reflects investor optimism surrounding reports that Adani Group has emerged as the front-runner to acquire Jaiprakash Associates. Since JAL holds around a 24% stake in JP Power, the market is anticipating that a successful resolution involving a financially strong sponsor like Adani could unlock meaningful value for JP Power’s underlying business,” said Harshal Dasani, Business Head, INVAsset PMS.
Investors are factoring in expectations of improved balance-sheet strength, management efficiency, and renewed growth prospects for JP Power if Adani indirectly gains control or influence through JAL’s stake.
“The rally, therefore, is a reflection of forward-looking optimism rather than near-term fundamentals. While this development marks a critical step towards restructuring JAL’s assets, clarity on deal contours, creditor approvals, and the eventual treatment of JAL’s holdings in JP Power will determine whether this optimism is sustained,” Dasani added.
Adani likely wins creditor nod for takeover of JAL
According to multiple media reports, creditors to JP Associates opted for Adani’s bid over Vedanta’s despite it being lower in value.
While Vedanta’s bid of ₹17,000 crore is higher than Adani’s ₹13,500 crore, creditors, mostly Indian banks, opted for Adani because it included larger upfront payments preferred by stakeholders, as per a Reuters report.
Vedanta’s bid proposed a five-year payment timeline—significantly longer than the 1.5–2 years offered by Adani—which influenced creditor preferences.
Besides Adani and Vedanta, other bidders included Dalmia Bharat, Jindal Power, and PNC Infratech. Controlling shareholder Manoj Gaur had also submitted a last-minute bid, but later withdrew it.
Adani Power: Technical outlook
In technical terms, Anshul Jain, Head of Research at Lakshmishree, said that JP Power is shaping a strong 22-month rounding bottom on the monthly chart, signalling a structural shift in momentum.
“The stock has lifted cleanly off the 10-month moving average after four months of tight, controlled closes — a sign of steady accumulation rather than speculative spikes. This kind of base formation often precedes meaningful trend expansion. A sustained move above ₹20 will be the key trigger, opening the way toward the ₹24–26 zone, which remains the first major supply area. If volumes expand on the breakout, the stock could enter a stronger trending phase as long-term participants step in,” Jain added.
FAQs
JP Power shares are rallying mainly due to speculation about Adani Group’s potential interest in acquiring Jaiprakash Associates’ assets.
The stock has zoomed nearly 27% in the last two trading sessions.
3. Is the Adani takeover of JAL confirmed?
No, there is no official confirmation yet. The rally is driven by market rumours and investor optimism.
4. Should investors buy JP Power at current levels?
Investors should wait for official announcements and consider their risk appetite before taking positions.
5. How could the Adani–JAL deal impact JP Power?
If the deal materialises, it may boost sentiment around related companies and improve long-term growth expectations.
⚠️ Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.