JP Power up 12% as Adani Ent's rescue plan for JAL gets creditors' approval

Adani Enterprises and Jaiprakash Power Ventures shares gained on the BSE after the Committee of Creditors (CoC) of Jaiprakash Associates (JAL), which is undergoing corporate insolvency, approved Adani Enterprises’ resolution plan. Adani Enterprises said it received a letter of intent (LoI) from the resolution professional on November 19, confirming that lenders had formally voted in favour of its proposal under the Insolvency and Bankruptcy Code.

 

On the BSE, Adani Enterprises rose as much as 1.9 per cent to an intra-day high of ₹2,479.85 per share, while Jaiprakash Power Ventures surged 12.2 per cent to ₹22.8 per share. Jaiprakash Associates, the flagship entity currently in insolvency, holds a 24 per cent stake in Jaiprakash Power Ventures. With the CoC clearing Adani’s plan, investors are now weighing the potential spillover effects on JP Power if control or significant influence over JAL eventually passes to the Adani Group.

 

 

Reports indicate that Adani received the highest backing, securing about 89 per cent of creditor votes, followed by Dalmia Cement (Bharat) and the Vedanta Group.

 

The National Asset Reconstruction Company Ltd (NARCL) played a decisive role in the outcome, holding around 86 per cent of the CoC’s voting share. A few lenders, including State Bank of India and ICICI Bank, who together account for less than 3 per cent of the CoC’s votes, abstained from voting.  CATCH STOCK MARKET LIVE UPDATES TODAY

Analysts’ view on Adani's resolution plan for JAL

According to Abhinav Tiwari, research analyst, Bonanza, Adani Enterprises’ acquisition gives Jaiprakash Associates a much-needed rescue plan. 

 

“Jaiprakash owns valuable assets such as cement plants, limestone mines, and projects in power, real estate, and infrastructure. With Adani’s financial strength and operational capability, these assets could be revived and made profitable again,” said Tiwari. 

 

He added: The deal improves Jaiprakash's chances of turning around its cement and infrastructure businesses, which had weakened during the insolvency period. 

 

For Adani, said Tiwari, the acquisition strengthens its presence in cement, power, and infrastructure areas where the group is expanding aggressively. The decision to make a large upfront payment shows Adani’s confidence in acquiring distressed but high quality assets. The deal supports Adani’s long-term strategy of building a large-scale, integrated infrastructure and materials business. 

 

For Jaiprakash investors, the deal is largely positive because it brings in a strong promoter group capable of improving operations and reducing debt. For Adani investors, this move adds new growth opportunities but also comes with risks related to integrating a stressed company. However, the quicker payment structure improves near-term cash flows for Jaiprakash creditors and boosts sentiment. Overall, the acquisition is a strategic win for Adani and a lifeline for Jaiprakash.

 

Kranthi Bathini, director of equity strategy, WealthMills Securities, said that the development is positive for Jaiprakash’s shareholders as the acquisition can revive the prospect of the Jaiprakash Associates. 

 

Jaiprakash Associates has been under insolvency due to unpaid loans of nearly ₹57,185 crore.