Jaiprakash Associates Limited has entered into definitive agreements to sell power assets and investments to entities within the Adani Group. This move follows the constitution of a monitoring committee to supervise the implementation of the Approved Resolution Plan submitted by Adani Enterprises Limited.

Acquisition Details

The agreements involve three primary transactions. Adani Power Limited will acquire a 24% shareholding in Jaiprakash Power Ventures Limited (JPVL), a listed entity. Additionally, Adani Power will purchase the 180 MW thermal power plant of Jaiprakash Associates located in Churk, along with other related assets, which includes an 11.49% shareholding in Prayagraj Power Generation Company Limited. Separately, Adani Ports & Special Economic Zone Limited will acquire 100% of the shareholding of Jaypee Fertilizers & Industries Limited (JFIL), the holding company of Kanpur Fertilizers and Chemicals Limited.

Financial Considerations

The total cost of acquisition amounts to ₹5,693.59 crore, payable in cash. The consideration is divided among the three assets being acquired, as detailed below:

Regulatory Approvals and Timeline

The acquisitions are being undertaken pursuant to the Approved Resolution Plan. The National Company Law Tribunal (NCLT), Allahabad bench, approved the resolution plan on March 17, 2026. The definitive agreements were signed on the night of May 20, 2026, following authorization from the monitoring committee on May 18, 2026. The transactions are expected to be consummated on the 'Effective Date' stipulated in the Approved Resolution Plan.

Target Entity Profile

Jaiprakash Power Ventures Limited (JPVL) is primarily engaged in thermal and hydro power generation, with additional operations in coal mining, sand mining, and cement grinding. The entity currently owns and operates three power plants with an aggregate capacity of 2,220 MW, a 2 MTPA cement grinding unit, and a 3.92 MTPA coal mine. JPVL was incorporated on December 21, 1994, and operates solely in India. The table below presents JPVL's recent turnover performance:

Jefferies has reaffirmed its Buy rating on Adani Power, setting a target price of ₹255. The brokerage's conviction is anchored in the company's unique positioning as India's only sizeable private-sector pure-play thermal power generator, a distinction that sets it apart in the domestic energy landscape.

Key Investment Rationale

Jefferies outlines several factors supporting its bullish stance on Adani Power, as summarised below:

Capacity Expansion and Growth Outlook

A central pillar of Jefferies' thesis is Adani Power's aggressive capacity expansion plan, targeting 31GW by FY30. This growth trajectory is expected to be accompanied by a 23% EBITDA CAGR, reflecting the scale and operational leverage the company is anticipated to achieve over the period. The brokerage also points to strong free cash flow generation by FY30 as a key financial milestone.

Declining Risk Profile

Jefferies notes that Adani Power's risk profile is on a declining trajectory, attributing this improvement to a higher proportion of capacity linked to Power Purchase Agreements (PPAs). PPA-linked capacity provides greater revenue visibility and reduces exposure to merchant power market volatility, contributing to a more stable earnings outlook as the company scales its operations toward its FY30 targets.