JP Power shares soar 15%, gains over 25% in six months; here is why the stock is rallying

Shares of JP Power zoomed almost 15% on Monday, July 7, amid reports of Adani Group leading the race to acquire Jaiprakash Associates.

According to exchange data, Jaiprakash Associates holds a 24% stake in JP Power. This is leading to the rally for the second session for the power firm.

Quoting people with knowledge on the matter, the report stated that the conglomerate has proposed more than ₹8,000 crore as an upfront payment without any preconditions.

Meanwhile, lenders of Jaiprakash Associates Ltd. (JAL) have turned down Jaypee Infratech's request to accept its resolution plan to acquire the bankrupt diversified company.

Five companies—Adani Enterprises, Vedanta Group, Dalmia Bharat Cement, Jindal Power, and PNC Infratech—have submitted their resolution plans to acquire JAL.

However, lenders of JAL, on June 25, had rejected the resolution plan of Suraksha Group-owned Jaypee Infratech Ltd., as the bid was submitted late and without earnest money.

In a meeting on July 1, the members of the CoC unanimously agreed not to change its earlier decision to reject Jaypee Infratech's resolution plan, they added.

In the meeting, the resolution professional also presented a brief summary of the five resolution plans, according to sources.

In the last five trading sessions, the stock has gained 17.5%, while for a month’s period, it has surged 22%.

Since January 7, a six-month period, JP Power shares have climbed 25.4%. Year-to-date, the stock has increased 20%.

Market capitalisation for JP Power stands at ₹14,844.59 crore.