Shares of Jaiprakash Power Ventures jumped 12 percent in morning trade following reports of progress in resolving ₹28,000 crore legacy debt through asset monetisation and lender agreements.
The stock touched an intraday high of ₹18.40 on the NSE, marking its sharpest single-session gain in three months amid volumes five times the 30-day average.
Sources indicate lenders have approved a one-time settlement framework that could reduce outstanding dues by ₹12,000 crore through proceeds from ongoing hydro asset sales.
The company operates 400 MW Vishnuprayag and 1,320 MW Nigrie thermal plants, with combined annual revenues exceeding ₹5,500 crore.
Market participants reacted positively to potential balance sheet cleanup that would free ₹800 crore annually in interest savings for growth capex.
Order books for power purchase agreements remain intact, with 85 percent of capacity tied under long-term contracts ensuring revenue visibility.
The surge lifted market capitalisation by ₹1,200 crore, reflecting renewed institutional interest in turnaround stories within the power sector.
Analysts maintain buy ratings with targets between ₹22-25, citing resolution timeline completion by March 2026.
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