JP Power shares soar 20% on optimism around Adani Power’s 24% stake purchase

Shares of Jaiprakash Power Ventures (JP Power) rallied as much as 20% to their day’s high of Rs 22.95 on the NSE on Wednesday to extend gains for a fifth consecutive session and rally over 25% during the same period.

Volumes were high in today’s session as more than 87 crore shares worth Rs 1,904 crore changed hands, stock exchange data showed.

Last week, Adani Power said it has signed definitive agreements with Jaiprakash Associates Limited (JAL) to acquire a 24% stake in Jaiprakash Power Ventures Limited (JPVL) along with the 180 MW Churk thermal power plant in Uttar Pradesh under the NCLT-approved resolution plan for JAL.

The company said it has entered into a Share Purchase Agreement to acquire JAL’s 24% stake in JPVL for nearly Rs 2,993.6 crore. In addition, it has signed a Business Transfer Agreement to acquire the Churk thermal power plant and associated assets, including JAL’s 11.49% stake in Prayagraj Power Generation Company Limited, for Rs 1,200 crore.

According to Adani Power, the acquisitions will strengthen its generation portfolio and expand its footprint in the thermal power sector, while also providing strategic exposure to JPVL’s diversified energy and mining businesses. The transaction is part of the broader Adani Group-led resolution plan for debt-laden JAL and is aligned with Adani Power’s core power generation business.

Adani Power said the acquisitions will be completed through cash consideration and are expected to close on the “Effective Date” under the approved resolution plan, which is scheduled to occur within 90 days from the NCLT approval granted on March 17, 2026.The development comes at a time when power stocks have staged a strong rally. India is currently reeling under heatwave conditions amid the exceptionally strong El Niño year. In this background, power demand soared, boosting the power stocks. Adani Power shares were no exception. The stock jumped around 3% on Wednesday to hit a fresh 52-week high of Rs 252 apiece on NSE. The stock surged over 13% in one week and delivered 126% returns over one year.

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