Shares of Jaiprakash Power Ventures rose sharply on Wednesday after news broke that Adani Enterprises had been selected to take over Jaiprakash Associates under the ongoing insolvency process. The stock climbed nearly 17.63% to ₹20.75 on the BSE before closing at ₹20.31, up 15.14% for the day. The broader Sensex also ended higher, rising 0.61% to 85,186.47 points.
Jaiprakash Power Ventures is part of the Jaypee Group, led by Manoj Gaur. Trading in the shares of Jaiprakash Associates remains restricted as the company is undergoing insolvency proceedings. Despite this, the market reacted strongly to reports that creditors had reached a decision on the company’s future.
According to a Reuters report, lenders of Jaiprakash Associates unanimously supported Adani’s ₹13,500-crore offer. This decision came even though Vedanta Ltd. had submitted a higher bid worth ₹17,000 crore. Officials familiar with the process said that creditors preferred Adani’s proposal because it promised larger upfront payments. These immediate payments were seen as more reliable and beneficial for stakeholders.
Another major factor that influenced the decision was the payment timeline. While Adani committed to making payments within 1.5 to 2 years, Vedanta’s offer involved a much longer five-year repayment plan. One official explained that the quicker payout promised by Adani matched lender expectations and reduced uncertainty.
Jaiprakash Associates, once one of India’s biggest infrastructure companies, currently owes around ₹55,000 crore to its creditors. The company entered the Insolvency and Bankruptcy Code (IBC) process in June last year, making it one of India’s largest ongoing bankruptcy cases. The approval of Adani’s bid marks a major step forward in resolving the company’s financial troubles.
The news has created a wave of optimism among investors, as the takeover is expected to bring stability to the Jaypee Group’s power and infrastructure businesses. With creditor approval secured, the next steps will involve completing formalities under the IBC framework before Adani can officially take control.
For now, the stock market’s reaction shows strong investor confidence in Adani’s ability to revive the troubled group and steer its companies toward recovery.
