This Micro Cap Stock Has Gained 12% On Adani Deal Report—Exchanges Want To Know If It's True

Indian conglomerate Jaiprakash Associates, commonly known as Jaypee Group, has been asked by the National Stock Exchange to confirm or deny reports of a potential deal with Adani Group, which have sent the small-cap stock soaring 12%.

What Happened: The Adani Group is said to be interested in Jaiprakash’s cement plant located in Shahabad, Karnataka, Business Standard reported on Wednesday. The plant has an annual output of 1.2 million tonnes.

The National Stock Exchange has asked Jaypee Group to verify the news article. The firm’s response is still awaited.

The Adani Group, which has been actively acquiring businesses recently, is looking to double its current capacity from 70 million tonnes to 140 million tonnes per annum in the next five years.

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The speculation surrounding this probable sale comes at a time when ICICI Bank and State Bank of India (SBI) have lodged petitions seeking a debt resolution for Jaiprakash Associates under the Insolvency and Bankruptcy Code of 2016. These petitions are currently awaiting a verdict at the Allahabad Bench of the National Company Law Tribunal (NCLT).

Jaiprakash Associates had previously entered into an agreement in December of the previous year to sell its cement, clinker, and power plants to Dalmia Bharat for an enterprise value of ₹5,586 crore, but the deal is yet to be finalised.

Why It Matters: The potential acquisition by the Adani Group could provide a significant boost for Jaiprakash Associates, which has been struggling with debt problems. It could also play a key role in the Adani Group’s ambitious expansion plans. However, the deal’s success hinges on the pending petitions before the NCLT and the conclusion of the agreement with Dalmia Bharat.

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