The company's shares ended 12.26 per cent higher at Rs 16.57 on the BSE. In intra-day, the stock gained 13.82 per cent to Rs 16.80.
On the NSE, the stock soared 12.20 per cent to close at Rs 16.55.
Shares of parent Jaiprakash Associates also rose by 3.46 per cent to end the day at Rs 41.90.
In a regulatory filing, Jaiprakash Power today said, "A meeting of the Board of Directors will be held on March 01, 2014, inter alia, to consider the recommendations of the committee of directors / audit committee aiming at reduction of debt and unlocking the shareholders' value."
Meanwhile, there were also reports in the media that Jaiprakash Power Ventures could soon strike a deal to sell two power plants to a group led by Abu Dhabi National Energy Co.