Jaiprakash Power Ventures share climbs 5%, takes one-month gain to 30%

Shares of Jaiprakash Power Ventures Ltd climbed 5 per cent in Wednesday's trade, a day after the company informed stock exchanges that there was no unpublished price sensitive information or any pending announcement or development that, in its opinion, may have a bearing on the price or volume behavior of the scrip. 

On Wedesday, the stock rose 5.13 per cent to hit a high of Rs 23.56 on BSE. With this, the stock is up 30 per cent in the past one month and 37 per cent in the past six months.

By 10.23 am, however, the stock had cut most of its gains and was qupting at Rs 22.41 apiece. 

"Should any such event or information arise, we will promptly disclose the same to the stock exchanges in accordance with the applicable regulatory requirements," Jaiprakash Power Ventures said.

The 30th Annual General Meeting (AGM) of the members of Jaiprakash Power Ventures was held on Saturday, July 5.

Jaiprakash Power Ventures clarified that the recent movement in its share price is purely driven by market forces. The company emphasised its commitment to promptly disclose all material developments, in line with its policy on materiality of events and as per Regulation 30, read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

"The company is committed to give prompt disclosure of material events determined in accordance with Company's policy on Materiality of Events and the provisions of Regulation 30 read with Schedule-III of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015," JP Power said. 

On filing of the petition by a commercial bank before the National Company Law Tribunal (NCLT) bench at Allahabad, an associate of the company -- Jaiprakash Associates Limited (JAL) -- was admitted for Corporate Insolvency Resolution Process (CIRP) vide NCLT Order dated June 3, 2024 and an IRP was appointed.

SBI has filed a case for recovery in DRT-III at Delhi against JAL along with other parties where company has also been made a party as a corporate guarantor. There were reports that the Adani group has submitted a Rs 12,600 crore bid for the debt-laden company.

JP Power had given a corporate guarantee (CG) to State Bank of India (SBI) of $1,500 lakhs (31st March, 2024 $1,500 lakhs) equivalent to Rs 1,239.15 lakhs, against loans granted by SBI to JAL. The company received a legal demand cum recall notice from SBI for corporate guarantee provided by the company. But the company has disputed the same and presently in process of discussion with SBI.

The company wrote to SBI that in view of CIRP process against JAL has been started, the DRT proceedings against the borrowers (JAL) will be on hold.