Defying the weak broader market, shares of hit the 20% upper circuit in Tuesday’s trade, 27 May, reaching a nine-month high of ₹22.95 apiece after Adani Power acquired a 24% stake in the company.
The company said a share sale and purchase agreement has been signed between Jaiprakash Associates Ltd. (JAL) and Ltd. (APL) for the transfer of a 24% shareholding in Jaiprakash Power Ventures Ltd. (JPVL), CNBC-TV18 reported.
Last week, Adani Power said it had entered into definitive agreements for the acquisition of a 24% stake in Jaiprakash Power Ventures Limited held by JAL, along with the acquisition of JAL’s 180 MW thermal power plant located in Churk and other related assets, including an 11.49% stake in Prayagraj Power Generation Company Limited held by JAL.
Adani Power said the cost of acquiring the 24% stake in Jaiprakash Power Ventures stands at ₹2,993.60 crore, while the acquisition cost for the 180 MW thermal power plant and the 11.49% stake in Prayagraj Power Generation Company is ₹1,200 crore.
Through these transactions, Adani Power aims to strengthen its operational footprint in the thermal and hydro power generation space.
Jaiprakash Power Ventures primarily engaged in the business of thermal and hydro power generation, along with cement grinding operations. JPVL currently owns and operates three power plants with an aggregate capacity of 2,220 MW and a 2 MTPA cement grinding unit.
Over the last three fiscal years, the company’s revenue has remained above ₹5,000 crore, with FY26 revenue coming in at ₹5,563 crore. In FY25 and FY24, the company reported revenue of ₹5,462 crore and ₹6,763 crore, respectively.
JP Power has an aggregate capacity of 2,200 MW across three plants and also owns cement grinding and coal mining operations.
Jaiprakash Power Ventures
The shares have recovered sharply, surging 64% in less than two months. The rally came after the stock remained under pressure for four consecutive months.
Between April 2023 and January 2024, the stock witnessed a strong bull run, rallying from ₹5.55 to ₹18.55, translating into a multibagger gain of 234%.
Despite such a sharp rally, the stock still trades at a deep discount to its record high of ₹143.40 apiece. In terms of yearly performance, the stock has delivered positive returns in five out of the last six years, with 2023 being its best annual performance when it surged 85%.
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