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JP Power share price surged to ₹21.67 as of 12.13 AM as Adani Group emerges as the top bidder to acquire its parent, JP Associates.
Trading volume exceeded 449 million shares, significantly surpassing the 20-day average, indicating strong market interest.
Financial challenges for the company still remain, including a 73% YoY drop in quarterly profits and pending debt guarantees.
Jaiprakash Power Ventures (JP Power) share price crossed 15% in early trading on July 7, 2025. The trading price stabilised around ₹21.67 as of 12:13 AM, up 14.35% from the previous close of ₹18.95.
The stock opened strong at ₹19.10 and touched an intra-day high of ₹21.85. The surge comes amid market excitement over reports that the Adani Group is the top bidder for the Jaiprakash Associates (JAL) acquisition. JAL is the parent company of JP Power.
The stock’s trading volume was significantly high at 449.49 million shares. It is far above the 20-day average of 95.17 million shares, signaling strong investor interest. The total traded value stood at ₹974.06 crore. The stock’s 52-week high is ₹23.77, while its all-time high remains far above ₹143.40.
JP Power share price chart shows gains of 15.46% as of 12.17 PM on July 7, 2025:
Despite the stock’s recent momentum, JP Power's financials remain under pressure. The company posted a 73% YoY decline in net profit for Q4 FY25 to ₹155.67 crore. The net profit is down from ₹588.79 crore in the same quarter of the previous year.
Total income fell to ₹1,366.67 crore from ₹1,863.63 crore. For the full FY25, net profit dropped to ₹813.55 crore from ₹1,021.95 crore in FY24. The company trades at a TTM PE of 18.21, which is below the sector average PE of 26.71. Its P/B ratio is 1.24, which is slightly elevated but reflects market optimism.
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JP Associates was admitted into the Corporate Insolvency Resolution Process (CIRP) in June 2024. The news came after the company defaulted on loans amounting to ₹57,185 crore. Adani is reportedly offering over ₹8,000 crore upfront as part of the deal.
JP Power had also extended a corporate guarantee for JP Associates’ external borrowing of $150 million (now converted to a rupee term loan). The guarantee remains unresolved and is being closely watched by ratings agencies and lenders alike.
The rally is driven by reports suggesting that the Adani Group’s ₹12,500 crore bid for JP Associates, which holds a 24% stake in JP Power, is underway. An acquisition by a financially strong group is viewed positively by the market. Analysts suggest that it could eventually lead to Adani seeking majority control in JP Power as well.
G. Chokkalingam, Head of Research at Equinomics, noted that Adani's interest in JAL makes strategic sense as the group already operates in the cement and power sectors, aligning well with JP Associates' portfolio.
This potential synergy, along with Adani's proven ability to turn around distressed assets, has boosted sentiment around JP Power’s prospects, which its parent’s financial woes have historically weighed down.
JP Power’s fundamentals are currently fragile. However, the prospect of Adani-led management and financial stability is energizing investor sentiment. If the latter formalizes the acquisition and pursues a larger stake in JP Power, it could be a game-changer.
On a year-to-date basis, JP Power shares are already up nearly 20%. This bullish momentum could continue if more clarity emerges on the resolution process. For now, traders are betting on a turnaround driven by Adani’s entry into the picture.
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1. Is JP Power a good share to buy in 2025?
JP Power has delivered a 20% YTD return and surged over 14% in a single session. With Adani Group reportedly bidding for its parent company, speculative buying has increased. However, weak financials and ongoing insolvency risks mean it may be suitable only for high-risk, short-term investors.
2. What is the future of JP Power Share after the Adani Group bid?
If Adani acquires JP Associates, which owns a 24% stake in JP Power, market confidence is likely to rise. This could unlock synergies in the cement and power sectors. However, debt concerns and regulatory hurdles still impact long-term prospects.
3. What is the target price of JP Power share in 2025?
Analysts haven’t issued updated targets, but technically the next resistance lies near ₹23.77, the 52-week high. If Adani gains control, the share may test ₹25-₹30, depending on fundamentals and market sentiment.
4. Who is buying JP Power and what is driving the rally?
Heavy volumes suggest strong retail and speculative institutional buying. The primary catalyst is the ₹12,500 crore bid by Adani Group to acquire JP Associates. This has sparked expectations of a broader Adani-led turnaround.
5. Is JP Power a debt-free company?
No, JP Power is not debt-free. It has extended a corporate guarantee to JP Associates' $150 million borrowing and faces balance sheet pressure. The insolvency resolution outcome for JP Associates will directly affect JP Power’s future financial health.
