JP Power Share: Amazing rise is being seen in the shares of Jaiprakash Power Ventures (JP Power) today. In intraday trading, the shares jumped by 9 percent and were seen trading at the level of Rs 18.63. There is a reason behind this rise in shares today.
Why did Power Share become Rocket?
In fact, there are reports that Adani Group may defeat mining sector major Vedanta in the race to buy bankrupt infrastructure company Jaiprakash Associates (JAL). In the same sequence, small-cap share JP Power’s share on National Stock Exchange (NSE) and BSE rose by 9.12 percent to reach the day’s high of Rs 19.25.
Bankrupt Jaiprakash Associates has about 24 percent stake in JP Power. In such a situation, the market is hopeful that if Adani Group wins the bidding race, then it will bring profit to JP Power’s business in the market.
How did Adani defeat Vedanta?
First of all, when the auction was held in September to find a buyer for debt-ridden JP Associates, Vedanta was at the forefront of the race by bidding Rs 17,000 crore. Vedanta proposed to pay it in five years, whereas Adani Enterprises Limited, although bid Rs 12500 crore, has proposed to pay in two years. Perhaps it is believed that the company will ultimately fall into Adani’s lap because the Committee of Creditors (CoC) of JAL is considering Adani Group’s proposal to be better than Vedanta Group’s proposal. JAL’s business is spread across many big sectors like real estate, cement, power, hotels and roads.
Jaypee Infra MD arrested
Recently, Manoj Gaur, Managing Director of JP Infratech Limited, another company of Jaypee Group, has been arrested by ED in a case related to money laundering. ED alleges that Jaiprakash Associates, through Manoj Gaur, has committed a fraud of Rs 12,000 crore and embezzled the money of home buyers.
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