Lenders Prepare to Exit Rs 3,800 Crore Investment in JPVL

30 Jul 2025

Lenders to Jaiprakash Power Ventures (JPVL) are reportedly seeking to sell their ?3,800 crore equity stake in the listed power company. This equity was acquired by the lenders in exchange for funds they provided during the company’s debt restructuring.

The investment was made through compulsorily convertible preference shares (CCPS) issued during the company’s debt restructuring in 2019. These CCPS were issued as a substitute for reducing the company’s outstanding repayable debt. The report noted that the plan was discussed during a meeting of JPVL's committee of creditors held last weekend.

JPVL boasts a market capitalisation of ?14,686 crore and remains profitable, in contrast to its parent company, Jaiprakash Associates (JAL), which is currently undergoing insolvency proceedings. The buyer of the CCPS will own a sizeable 25% stake in JPVL upon conversion of the CCPS into shares. The transaction will also trigger an open offer for a further 26% to public shareholders as per SEBI norms. Effectively, the buyer could own up to 51% of the company.