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Lenders Seek Exit from Rs3,800 Cr Investment in Jaiprakash Power Ventures via CCPS Sale

Lenders to Jaiprakash Power Ventures Ltd (JPVL) are planning to offload their Rs3,800 crore investment made during the company’s 2019 debt restructuring. The investment was in the form of compulsorily convertible preference shares (CCPS), issued in exchange for a reduction in JPVL’s repayable debt. Upon conversion, the CCPS would give the new buyer a 25% stake in JPVL, triggering a mandatory open offer for an additional 26% under SEBI norms—potentially enabling the buyer to acquire majority control (51%).

This potential exit was discussed at a recent meeting of JPVL’s creditors' committee. ICICI Bank is the lead creditor. Lenders are reaching out to 10–12 large power generation firms to gauge acquisition interest. However, the plan may face hurdles if sufficient interest does not materialize.

JPVL, which has a market capitalization of Rs14,686 crore, remains profitable unlike its parent company Jaiprakash Associates Ltd (JAL), which is currently undergoing insolvency proceedings. JAL holds only a 24% stake in JPVL and would become a passive investor if control shifts following the CCPS sale.

JPVL operates both thermal and hydroelectric power assets with a total generation capacity of 2.2 GW. On Tuesday, JPVL’s shares hit the upper circuit and closed at Rs21.43 on the NSE.