Jaiprakash Power Share: Shares of debt-ridden Jaypee Group company Jaiprakash Power Ventures Limited (JP Power) are witnessing tremendous growth on Thursday. This rally of JP Power shares has been going on for the last two days. In early trade, the stock jumped 10.5 percent and was seen trading at the level of Rs 22.4. On Wednesday, the stock had gained up to 14.91 percent. That means overall the stock has risen by 27 percent in two sessions.
Why is there a rise in shares?
There is a reason behind this rise in shares. Actually, Adani Group company Adani Enterprises has received approval for its resolution offer from the Committee of Creditors (CoC) of Jaiprakash Associates. Adani Enterprises said on Wednesday evening that it had received a letter of intent from the resolution professional on November 19, confirming that lenders have voted in favor of its proposal under the Insolvency and Bankruptcy Code.
How did Adani overtake Vedanta?
Jaiprakash Associates has 24 percent stake in JP Power, hence the market expects the company to make profit from this deal.
In the electronic auction held in September, mining sector giant Vedanta had become the highest bidder with an offer of Rs 17,000 crore, but lenders ultimately preferred Adani’s plan because of the upfront payment, while its net present value is about Rs 500 crore less.
Adani has also been given the highest evaluation out of 100 in a score sheet distributed among creditors. However, some lenders had raised questions on the scoring method. JAL owes around Rs 55,000 crore to lenders and was included in the insolvency proceedings in June 2024.
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Adani won the battle even after making small bid, JAL got its name by defeating Vedanta.
