JSW Steel Acquisition of Bhushan Power and Steel Approved by India’s Supreme Court

Supreme Court Reverses Decision on JSW Steel Acquisition

India’s Supreme Court has reversed its earlier rejection of JSW Steel’s $2.3 billion acquisition of Bhushan Power and Steel (BPSL). The ruling acknowledges JSW Steel’s investments in modernizing BPSL and protecting jobs. This decision resolves years of legal disputes since BPSL entered insolvency proceedings in 2017 under the Insolvency and Bankruptcy Code (IBC). JSW Steel’s debt settlement plan, initially approved in 2019, faced several hurdles including asset seizures, which were lifted in December 2024. The court’s reversal restores confidence in distressed asset markets across India.

Strategic Investment and Expansion Plans by JSW Steel

JSW Steel will invest 20,000 crore rupees ($2.4 billion) in the 2025/2026 fiscal year. The capital expenditure prioritizes the third phase expansion of the Dolvi plant in Maharashtra. The remainder will fund projects at Bhushan Power, Jindal Vijayanagar Metallics (JVML), and processing units. The Supreme Court dismissed disputes over EBITDA allocation during the settlement and delays in execution, clearing the path for JSW’s growth strategy. This acquisition aligns with JSW’s ambition to strengthen its steel production capacity and market position.

SuperMetalPrice Commentary:

JSW Steel’s Supreme Court victory stabilizes India’s distressed steel asset sector and signals regulatory clarity. The decision reduces risks for investors eyeing insolvency-driven acquisitions. JSW’s robust capital spending underscores confidence in the steel market’s recovery and India’s industrial growth. Stakeholders should watch the execution of expansion projects closely, as these investments will impact regional steel supply chains and pricing dynamics.