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Apex court held that JSW should have completed the takeover only via equity instead of a mix of equity and optionally convertible debentures
Sajjan Jindal–controlled JSW Steel, is likely to go for an appeal against the Supreme Court order after the latter rejected the steel major’s ₹19,350 crore bid to acquire Bhushan Power and Steel Ltd (BPSL) through corporate insolvency route and subsequently ordered the liquidation of BPSL.
The company is exploring all legal options and is also in touch with lenders, who also might join JSW, India’s largest steel maker by volume, in appealing against the order.
Sources in the know told businessline, that a final decision is likely over the next 10-odd days with the steel-major prioritising the legal battle as its first major step.
“It is a priority, and all options are being explored,” a company official said adding that: “JSW reserves the right to seek a review petition.”
Bhushan accounts for over 12 per cent of JSW Steel’s annual production of 34 million tonnes per annum (mtpa). And around 10 per cent of earnings before interest and tax.
JSW Steel did not respond to queries from businessline.
Incred Equities, said, JSW’s options include filing a review petition before the Supreme Court under Article 137. “Such petitions are only entertained on very limited grounds, such as an error apparent on the face of the record, and are rarely successful,” it said. The other option, it said, is to “file a curative petition as a last resort”. “But this is even more restricted and is allowed only in cases where there is a gross miscarriage of justice,” the report added.
SC rejects resolution plan
On May 2, the Supreme Court rejected JSW’s acquisition of BPSL citing procedural and legal lapses in what is now seen as one of the high-profile corproate takeovers and insolvency proceedings in the country. The case was pursued by operational creditors of BPSL.
In 2021, JSW Steel acquired a 49 per cent stake in BPSL via corporate insolvency process. It allowed JSW access to 2.75 mtpa steel-making capacity in Odisha. By October 2021, JSW Steel increased its stake to 83 per cent.
However, last week, the Apex Court held that JSW should have completed the takeover only via equity instead of with a mix of equity and optionally convertible debentures. It also said, the Sajjan Jindal owned company failed to complete the resolution plan within prescribed timeline.
Bhushan plant: Present day
Located in Odisha’s Jharsuguda, BPSL’s estimated crude steel production in FY25 is around of 3.38 mt, with a HRC (hot rolled coil) capacity of 1.8 mt and 1.2 mt of CRC (cold rolled coil) capacity, sources said.
Market intelligence firm, BigMint, in a recent report, said, BPSL churns out value-added products such as colour-coated, galvanised sheets, pipes and wires.
The facility, gave JSW Steel a presence in eastern India, complementing its western and southern India operations. It also strengthened the steel-major’s long-term growth strategy, helping it move toward a 30mtpa steel production target.
Ramp-up plans hit?
JSW planned to ramp-up BPSL’s capacities to 5 mtpa eyeing benefits of higher sales and realisation from value-added products (which also come with better margins).
“Moreover, BPSL’s strategic importance was in its location in the eastern part of India where JSW has taken up considerable iron ore mining assets,” the report mentioned. The company’s Netrabandha iron ore mine (in Odisha), is expected to commence production in Q1FY26 with an estimated capacity of 2 mtpa.
“But now, with the BPSL expansion derailed by the court order, JSW’s target of 50 mtpa of crude steel capacity by 2030 has received a minor setback,” BigMint report said adding that the steel-major is likely focus on “other investments in Odisha” that include a 5 mtpa plant it has proposed to be set up with POSCO; and a 13 mtpa planned greenfield facility with an estimated investment of ₹65,000 crore.
Published on May 5, 2025
This article first appeared on The Hindu Business Line
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