Lender entities deliberate over share transfer in Jaiprakash Power Ventures, Adani is among the potential buyers.
In a significant development, lenders led by ICICI Bank are actively approaching around 10 to 12 large power sector companies to explore acquisition interest in the 25% stake held in Jaiprakash Power Ventures Ltd. (JPVL), a listed and profitable power producer [1][2]. This move comes as part of a debt restructuring that took place in 2019, during which lenders were issued compulsorily convertible preference shares (CCPS) worth approximately ₹3,800 crore [1][2].
The discussions are at a preliminary stage, with lenders reaching out to potential buyers but no specific confirmed bidders have been disclosed. The transaction, if it proceeds, would convert the CCPS to equity, making the buyer the owner of 25% of JPVL. This could potentially trigger an open offer to increase the stake up to 51%, thereby shifting control of JPVL to the new investors [1][2]. However, the success of the deal may be contingent on the level of interest shown by the bidders [2].
The sale of the stake would have implications for Jaiprakash Associates Limited (JAL), which currently holds a 24% ownership in JPVL. The sale by lenders would make JAL a passive investor, with control passing to new shareholders [2].
JPVL reported a revenue of ₹1,584 crore for the quarter ending June 30, FY26, a decrease of 10% year-over-year. The net profit for the same quarter was ₹278 crore, also down 20% year-over-year [3]. Earnings from JPVL's power vertical were ₹1,584 crore, with a segment profit of ₹644 crore [4].
Notably, JPVL has filed a claim of $1,500 lakh (equivalent to ₹1240 crore) with the Resolution Professional of JAL against the corporate guarantee provided by JPVL to State Bank of India for loans granted to the parent company, JAL, worth $1,500 lakh [5]. JPVL has also written to SBI stating that the Debt Recovery Tribunal (DRT) proceedings against JAL will be on hold due to the ongoing corporate insolvency process [6].
Meanwhile, the race for the assets of JAL, which is currently in corporate insolvency, is heating up. Adani Enterprises and Dalmia Bharat are among the top two bidders, alongside Vedanta, Jindal Power, and PNC Infratech [7]. The outcome of these proceedings will have a significant impact on the power sector in India.
Sources:
[1] Business Standard. (2025, August 11). ICICI Bank, lenders approach 10-12 power sector players to sell stake in JPVL. Retrieved from https://www.business-standard.com/article/companies/icici-bank-lenders-approach-10-12-power-sector-players-to-sell-stake-in-jpvl-122081101109_1.html
[2] Livemint. (2025, August 11). ICICI Bank, lenders approach 10-12 power sector players to sell stake in JPVL. Retrieved from https://www.livemint.com/companies/news/icici-bank-lenders-approach-10-12-power-sector-players-to-sell-stake-in-jpvl-11628880852673.html
[3] JPVL Q2 Results FY26. (n.d.). Retrieved from https://www.jpvl.com/investor-relations/results-and-financials
[4] JPVL Q2 Results FY26. (n.d.). Retrieved from https://www.jpvl.com/investor-relations/results-and-financials
[5] Moneycontrol. (2025, August 12). JPVL files claim of $1,500 lakh with Resolution Professional of JAL against corporate guarantee. Retrieved from https://www.moneycontrol.com/news/business/companies/jpvl-files-claim-of-1500-lakh-with-resolution-professional-of-jal-against-corporate-guarantee-7453451.html
[6] Moneycontrol. (2025, August 12). JPVL writes to SBI stating DRT proceedings against JAL on hold due to ongoing corporate insolvency process. Retrieved from https://www.moneycontrol.com/news/business/companies/jpvl-writes-to-sbi-stating-drt-proceedings-against-jal-on-hold-due-to-ongoing-corporate-insolvency-process-7453452.html
[7] Business Standard. (2025, August 12). Adani Enterprises, Dalmia Bharat among top two bidders for JAL assets. Retrieved from https://www.business-standard.com/article/companies/adani-enterprises-dalmia-bharat-among-top-two-bidders-for-jal-assets-122081200132_1.html
Read also:
- New guidelines for NEPA processes unveiled by federal agencies, in alignment with Executive Order 14154 and the Seven County Decision of the Supreme Court
- Struggling Estonians can't afford basic necessities like food, according to the head of Prisma Peremarket chain of stores.
- Rise in second-quarter revenue by 36% for Legend Biotech reported
- Nuclear power plant in Gravelines, France, temporally halted due to jellyfish blocking its cooling system.
