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(26 May 2025, 15:11)

JSW Steel gains on buzz of SC relief on BPSL resolution

JSW Steel climbed 2.13% to Rs 1,030 after the Supreme Court reportedly allowed it to file a review petition against the scrapping of its Rs 19,300 crore resolution plan for Bhushan Power and Steel Ltd (BPSL).


According to the media reports, the court also put BPSL's liquidation on hold, giving JSW temporary breathing room.

The earlier May 2 verdict had cancelled JSW’s resolution plan citing delays under the Insolvency and Bankruptcy Code (IBC), even though JSW had already taken over BPSL’s operations and invested heavily.

Now, the apex court has reportedly instructed the National Company Law Tribunal (NCLT) to pause proceedings until it rules on the review plea, which JSW must file within 30 days.

BPSL is a key asset for JSW, with its Odisha plant contributing 4.5 million tonnes per annum (MTPA) to JSW's total domestic capacity of 34.2 MTPA. JSW has also served demand notices to banks, seeking refunds on payments made under the now-invalidated deal.

BPSL was one of the 12 major loan defaulters flagged by the RBI in 2017, with total dues exceeding Rs 47,200 crore. By the time insolvency proceedings began, it owed over Rs 45,000 crore. In 2019, JSW Steel acquired the company for Rs 19,700 crore after the NCLT approved its resolution plan.

However, the Supreme Court later struck down the resolution plan, calling it illegal and a violation of the Insolvency and Bankruptcy Code (IBC). A bench led by Justices Bela M Trivedi and Satish Chandra Sharma slammed the conduct of key stakeholders, citing a "flagrant violation" of the IBC, and ordered BPSL's liquidation.

Despite legal hurdles, mainly from ex-BPSL promoter Sanjay Singhal, JSW went ahead with the acquisition and revived the plant. With the review petition now allowed, the company may still reclaim the asset or at least recover its investment.

JSW Steel, the flagship business of the diversified JSW Group, is India's leading integrated steel company. On a consolidated basis, net profit of JSW Steel rose 15.70% to Rs 1503 crore while gross sales declined 2.86% to Rs 44341 crore in Q4 March 2025 over Q4 March 2024.


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