Smallcap power stock soars 16% on huge volumes; zooms 74% in 2 months

Shares of Jaiprakash Power Ventures have moved higher by 16 per cent to ₹21.95, trading close to its 52-week high level

Jaiprakash Power Ventures share price: Shares of Jaiprakash Power Ventures (JP Power) have moved higher by 16 per cent to ₹21.95 on the BSE in Monday’s intra-day trade amid heavy volumes in an otherwise subdued market. 

 

The stock price of the smallcap power generation company is trading close to its 52-week high level of ₹23.77 touched on October 10, 2024. In comparison, the BSE Sensex was down 0.08 per cent at 83,367 at 12:23 PM.

 

The average trading volumes on the counter jumped over 7-fold. A combined 588 million shares representing 8.6 per cent of the total equity of JP Power have changed hands on the NSE (525 million) and BSE (63 million).

 

 

In the past two weeks, the stock price of JP Power has appreciated by 30 per cent, while in two months it zoomed 74 per cent from ₹12.6 on May 7, 2025.

 

Jaiprakash Associates is the promoter of JP Power and holds a 24 per cent stake. Shares of Jaiprakash Associates have been locked in the 5 per cent upper circuit at ₹3.22 on the BSE.  Track LIVE Stock Maket Updates Here

What’s driving JP Power stock price?

The Adani group has emerged as the frontrunner to acquire Jaiprakash Associates, which is currently undergoing insolvency proceedings, with a bid of up to ₹12,500 crore, the Business Standard reported, quoting people familiar with the matter on Thursday. 

 

Rival bidder Dalmia group is also in the fray and is willing to top Adani’s offer, provided a key legal hurdle related to JAL’s Sports City project is resolved. The case is currently pending before the Supreme Court. CLICK HERE FOR FULL REPORT

 

Meanwhile, India Ratings and Research (Ind-Ra) in rationale said that the rating agency notes that JP Power’s promoter JAL is under Corporate Insolvency Resolution Process (CRIP). The agency does not expect JAL’s CRIP to have a material impact on JPVL’s balance sheet; however, the outcome of the same shall remain a key monitorable for the agency. 

Opportunities in Indian power sector

JP Power is primarily engaged in the generation of power and thus has only one segment. The company has Amelia (North) Coal Mine which is for captive consumption. Last year, the company received “Right of Exploration” in respect Banda (North) Coal Block on which exploration work is going on. The turnover from Cement Grinding was Nil.

 

JP Power in its FY25 annual report said that the Indian power sector in FY2024-25 presents a multitude of opportunities driven by increasing energy demand, rapid technological advancements, and strong government support for clean energy transition. 

 

India aims to install 500 Gigawatt (Gw) of non-fossil fuel capacity by 2030, paving the way for growth in solar, wind, and hydroelectric power projects. The Green Hydrogen Mission, with an outlay of ₹19,744 crore, is another lucrative avenue, offering scope for electrolyser manufacturing and hydrogen production for industries like steel, cement, and transportation. 

 

Additionally, the approval of ₹60,676 crore worth of inter-state transmission projects enhances prospects for private sector participation in strengthening grid infrastructure, ensuring efficient renewable energy integration. These initiatives, along with attractive policy incentives like Production-Linked Incentives (PLI) for solar manufacturing and viability gap funding for battery energy storage, further boost investor confidence in the sector.

 

Meanwhile, JP Power plans to incur capex of ₹1,500 crore over FY25-FY27 for the installation of flue-gas desulfurization (FGD) unit at Nigrie and Bina thermal power plants and ₹760 crore towards Bandha North coal mine over FY25-FY29. The capex is likely to be funded by internal accruals. The company's ability to execute both the capex projects with internal accruals shall remain a key monitorable, Ind-Ra said in January 2025 rating rationale.