JP Power share price surges 15%. What’s behind the rally in this small-cap

JP Power share price: Shares of Jaiprakash Power Ventures (JP Power) surged over 15% in intra-day trade on Monday, extending its rally to the second session in a row.
JP Power share price: Shares of Jaiprakash Power Ventures (JP Power) surged over 15% in intra-day trade on Monday, extending their rally to the second session in a row after media reports suggested that Adani Group, led by billionaire entrepreneur Gautam Adani, has emerged as the highest bidder to acquire Jaiprakash Associates (JP Associates).Acquisition by a well-managed and financially strong Adani group not only bodes well for the company but also for JP Power, wherein JP Associates holds a 24% stake.G. Chokkalingam, Founder & Head of Research, Equinomics Research, said that an acquisition by a powerful entity of JP Associates will be complimentary to the other group entities. He added that it makes sense for the Adani Group to acquire JP Associates, and consequently, JP Power, as it would be complementary to the Adani Group because JP Associates has the cement and power businesses.

“Not being content with the 24% stake via JP Associates, they should — logically speaking — try for majority control in JP Power also, because it is aligned with their own business model,” Chokkalingam added.
According to a Business Standard report last Friday, Adani Group’s proposal for JP Associates is valued at ₹12,500 crore. Vedanta, JSPL, Surakasha Group, Dalmia Bharat, and PNC Infratech are among the potential bidders who have bid on JP Associates. In April, as many as 25 corporations expressed interest in acquiring JP Associates. JP Associates, which has commercial interests in real estate, cement manufacture, hospitality, and engineering and construction, was admitted to the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal, Allahabad Bench, on June 3, 2024. The corporation was declared insolvent after the conglomerate failed to repay loans. Creditors seek a staggering ₹57,185 crore.

The CG was supposed to be released in accordance with the framework agreement agreed by JP Power and its lenders in April 2019, but it has yet to be issued. According to India Ratings & Research, JP Associates’ insolvency outcome will be closely monitored in the context of JP Power. JP Power Financials Last week, the company recorded an over 73% fall in net profit to ₹155.67 crore for the March 2025 quarter because to lower income. The company reported a net profit of ₹588.79 crore during the January-March quarter of the previous fiscal year 2023-24, according to an exchange filing.

The company’s total income decreased to ₹1,366.67 crore, from ₹1,863.63 crore in the previous quarter. The net profit for FY25 was ₹813.55 crore, down from ₹1,021.95 crore in January-March FY24, according to a PTI report. JP Power’s Share Price Trend JP Power’s share price opened at ₹19, up from the previous close of ₹18.95 on BSE. The stock skyrocketed over 15% to a day’s high of ₹21.80 per. Today’s rise brings JP Power’s share price close to its 52-week high of ₹23.77. JP Power stock has grown 17% in the last year, 248% in the previous two years, and 907% in the last five years, resulting in multibagger gains for investors.

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