The Shares of a power company jumped over 18% after reports said the Adani Group is likely to buy its parent firm for Rs 12,500 crore. Investors expect the deal to benefit the company, as the parent holds a big stake and the businesses fit well with Adani’s plans.
With a market capitalization of Rs 15,208 Crores, the share price of Jaiprakash Power Venture Limited was trading over 18% up to hit an intraday high of Rs 22.25 per share from its previous closing price of Rs 18.95 per share.
Whats The News
Jaiprakash Power Ventures is gaining attention after reports said the Adani Group has emerged as the top bidder to acquire its parent company, Jaiprakash Associates, for Rs 12,500 crore. Jaiprakash Associates currently holds a 24% stake in JP Power, and the acquisition is expected to unlock value for the power firm.
The proposed deal includes over Rs 8,000 crore in upfront payment and is part of the insolvency process, with creditors claiming over Rs 57,000 crore. Experts believe a takeover by a financially strong group like Adani would benefit both Jaiprakash Associates and JP Power, especially given synergies in cement and power businesses.
Jaiprakash Power Ventures Ltd. (JPVL), part of the Jaypee Group, is engaged in the business of thermal and hydro power generation, coal mining, and cement grinding. The company currently operates three power plants with a total capacity of 2,200 MW, a hydroelectric plant in Uttarakhand and two thermal power plants in Madhya Pradesh.
It also owns the Amelia (North) coal mine, which supports its thermal operations, and recently expanded its capacity to 3.36 MTPA, with further expansion underway.
In addition, JPVL owns a 2 MTPA cement grinding unit and has participated in the auction of the nearby Bandha North coal block for future expansion. To reduce debt and focus on core operations, JPVL has exited certain assets like the Karcham Wangtoo and Baspa-II hydro projects and transferred its stake in Jaypee Powergrid to Power Grid Corporation. The company is now focused on strengthening its energy and mining businesses.
The company posted a revenue of Rs 5,462 crore in FY25, down by 19.2% from Rs 6,763 crore in FY24. Coming to its profitability, the company reported a net profit decline of 20.4% to Rs 814 Crores in FY25 from Rs 1,022 crore In FY24. The company maintained a Return on Capital Employed (ROCE) of 10.3% and a Return on Equity (ROE) of 6.85%.
Written By Rohan Pandey
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Stock skyrockets 18% after Adani Group likely to acquire its parent company for ₹12,500 Cr appeared first on Trade Brains.