Jaiprakash Power Shares in Focus; Lenders Likely to Exit ₹3,800 Cr Investment via CCPS Sale

In a strategic shift, lenders to Jaiprakash Power Ventures Ltd. (JPVL) are preparing to exit their ₹3,800 crore investment in the company, a move that could trigger a major change in ownership, as per The Economic Times report.

The investment, made through compulsorily convertible preference shares (CCPS) during a debt restructuring in 2019, currently gives lenders a potential 25% stake in the company enough to push a new buyer towards majority control through an open offer.

JP Power’s Debt-to-Equity Swap from 2019

The investment stems from a 2019 debt restructuring deal, where lenders swapped a portion of JPVL’s outstanding debt for CCPS. This helped reduce the company’s repayable debt burden while giving lenders equity-like instruments that could later be converted into shares.

Now, the lenders led by ICICI Bank are seeking to divest those instruments and are actively approaching 10–12 large power sector players to explore acquisition interest.

If sold, the new investor would gain a 25% equity position and could initiate an open offer to take their stake up to 51%, shifting control of JPVL to new hands, the report added.

Read More: Is JP Power Debt Free? A Look at Its FY25 Financials.

JP Power Share Price Performance and Market Cap

On Tuesday, JPVL shares surged 5% to ₹21.43, hitting the upper circuit on the NSE. The momentum continued on Wednesday, with a further 1.26% rise to ₹21.80.

Jaiprakash Power Ventures (NSE: JPPOWER) currently boasts a market capitalisation of ₹14,686 crore and operates a mix of thermal and hydroelectric plants with a total power generation capacity of 2.2 gigawatts. Unlike its financially troubled parent, Jaiprakash Associates Ltd (JAL) which is undergoing insolvency proceedings JPVL remains profitable.

Interestingly, JAL holds only 24% of JPVL, and a change in ownership of the CCPS would likely render it a passive investor, with no significant influence over company decisions.

Read More: Why Is the Adani Group Acquiring JP Associates?

Conclusion

The reported plans to sell ₹3,800 crore worth of CCPS in Jaiprakash Power Ventures suggest a possible shift in the company’s ownership structure, though no formal confirmation has been made by the lenders or the company. If such a move materialises, it could pave the way for a new strategic investor and reduce promoter influence.

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