Often such news comes in the stock market which suddenly breathes life into a silent stock. Exactly the same thing happened with the investors of JP Power on Wednesday, March 18. Suddenly a huge rise of about 12 percent was recorded in this small stock (penny stock). The buying and selling of this stock has increased manifold in the market as compared to normal days. There is no trivial reason behind this stormy boom, rather the name of ‘Adani Group’, one of the largest business groups of the country, has been associated with it. The National Company Law Tribunal (NCLT) has approved the bid of Adani Enterprises for the acquisition of Jayprakash Associates (JAL), the promoter company of Jaypee Power.
Adani’s seal brings ‘storm’ in trading volume
Since Wednesday morning, tremendous enthusiasm was seen in the market regarding the shares of JP Power. By 10:40 am, around 99 lakh shares had been bought and sold on BSE. This figure is almost three times more than the average of the last two weeks (which was about 38 lakh shares). At the same time, a huge trade of 1,695.58 lakh shares took place on the National Stock Exchange (NSE). Due to this tremendous demand, JP Power’s shares on NSE jumped by 11.80% to reach ₹ 15.63, whereas in the previous trading session it had closed at ₹ 13.98. This is a great rise for the second consecutive day in this stock priced below Rs 20.
Why is so much buying happening in JP Power?
Actually, Jaypee Associates (JAL) holds 24 percent stake in Jaypee Power. Jaypee Associates informed the stock market on Tuesday that the Allahabad Bench of NCLT has orally approved the ‘resolution plan’ submitted by Adani Enterprises on March 17, 2026.
Let us tell you that in November last year itself, the Committee of Creditors (CoC) had approved this acquisition proposal of Gautam Adani. In the race to buy this bankrupt infrastructure group, Adani Enterprises won the bid of ₹ 14,535 crore by defeating big companies like Vedanta and Dalmia Bharat.
Is there an opportunity for investors?
Leading market analysts are seeing this step as a big change. According to Harshal Dasani, Business Head, INVasset PMS, investors are now betting on the ‘look-through value’ (indirect value) of this deal. This simply means that with the acquisition of JP Associates, Adani Group will also get a large indirect stake in JP Power.
The possibility of a strong and big promoter coming in has given rise to aggressive buying in the market. Dasani says that for a long time, JP Power’s shares were under pressure due to the group’s huge debt and concerns related to corporate governance. Now, with the control of a strong and well-capitalized company like Adani Group, the confidence of the lenders will increase to a great extent and the company will get strategic strength.
‘Fear of uncertainty’ is over from stocks
Bonanza’s Research Analyst Balaji Rao Mudili also completely agrees with this view. According to him, this acquisition plan will give Adani Group direct access to the key assets of JP Associates. Since JP Associates currently has a huge debt of more than ₹57,000 crore, JP Power can now directly benefit from Adani’s excellent management, deep pockets (strong capital for expansion) and cheap debt.
Mudili said that this decision has completely eliminated the ‘uncertainty discount’ from JP Power’s stock. Earlier, there was a deep fear in the minds of investors that due to debt pressure, the parent company might have to sell its shares at throwaway prices or its assets might get frozen. Now that a clear winner has been announced, buying interest in the stock has returned.
Decline in profits, yet expectations remain
JP Power’s net profit has fallen significantly to just ₹ 4.89 crore in the December 2025 quarter, which was ₹ 124.65 crore in the same period a year ago. Due to lower income, the total income of the company also declined to ₹ 1,211.40 crore as compared to ₹ 1,256.35 crore in the previous quarter.
However, Mahesh Ojha, vice president (research), Kantilal Chhaganlal Securities, believes that apart from the positive impact of the NCLT decision, JP Power’s valuation is still quite comfortable. The company’s strong presence in the power sector provides it with good business opportunities. Adani’s entry has definitely raised a new hope for this stock, which can prove beneficial for investors in the long term.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.