Adani will eventually acquire the company! Vedanta leads the race; Power stocks surge as soon as the news broke.

JP Power Share: Bankrupt Jaiprakash Associates holds approximately 24% stake in JP Power. If the Adani Group outbids Vedanta and acquires the company, it would benefit JP Power's business.

 

Adani Power shares surge as soon as the news broke.

 

 

JP Power Shares: Shares of Jaiprakash Power Ventures (JP Power) are seeing a significant surge today. Shares jumped 9% in intraday trading to trade at ₹18.63. There's a reason behind this surge.

Why did Power Share become a rocket?

In fact, there are reports that the Adani Group may outbid mining giant Vedanta in the race to acquire bankrupt infrastructure company Jaiprakash Associates (JAL).

In response, shares of small-cap stock JP Power rose 9.12% to an intraday high of ₹19.25 on the National Stock Exchange (NSE) and BSE.

Bankrupt Jaiprakash Associates holds a roughly 24% stake in JP Power. Markets expect that if the Adani Group wins the bidding race, it will boost JP Power's business in the market.

How did Adani beat Vedanta?

When the auction was initially held in September to find a buyer for debt-ridden Jaypee Associates, Vedanta was the frontrunner with a bid of ₹17,000 crore.

Vedanta offered to pay the amount over five years, while Adani Enterprises Limited, though bidding ₹12,500 crore, offered to pay over two years. Perhaps this is why it is believed that the company will ultimately fall to Adani because JAL's Committee of Creditors (CoC) considers the Adani Group's offer superior to Vedanta's. JAL's businesses span a wide range of sectors, from real estate to cement, power, hotels, and roads.  

JP Infra MD arrested

Recently, Manoj Gaur, Managing Director of another Jaypee Group company, Jaypee Infratech Limited, was arrested by the Enforcement Directorate (ED) in a money laundering case. The ED alleges that Jaiprakash Associates, through Manoj Gaur, committed fraud totaling ₹12,000 crore and misappropriated homebuyers' funds.