JP Power Ventures Shares Reach 9-Month High, Surge 20% in a Single Trading Session
Jaiprakash Power Ventures Shares Hit 20% Upper Circuit as Adani Power Acquires 24% Stake
In a surprising move that defies the weak broader market, shares of Jaiprakash Power Ventures surged 20% in Tuesday's trade, reaching a nine-month high of ₹22.95 apiece. This significant gain comes on the heels of Adani Power's acquisition of a 24% stake in the company.
According to reports, a share sale and purchase agreement has been signed between Jaiprakash Associates Ltd. (JAL) and Adani Power Ltd. (APL) for the transfer of a 24% shareholding in Jaiprakash Power Ventures Ltd. (JPVL). This acquisition is part of a larger deal, which also includes the purchase 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's acquisition of the 24% stake in Jaiprakash Power Ventures is valued 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.
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Jaiprakash Power Ventures is primarily engaged in the business of thermal and hydro power generation, along with cement grinding operations. The company 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.
| Year | Revenue (₹ crore) |
|---|---|
| FY26 | 5,563 |
| FY25 | 5,462 |
| FY24 | 6,763 |
| Year | Revenue Growth |
|---|---|
| FY26 | 3.5% |
| FY25 | -3.3% |
| FY24 | 16.5% |
The company has an aggregate capacity of 2,200 MW across three plants and also owns cement grinding and coal mining operations. Jaiprakash Power Ventures' 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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Investor Takeaway
Investors should consider the potential upside in Jaiprakash Power Ventures following Adani Power's acquisition.
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