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JSW Steel Ordered to Unwind Bhushan Power and Steel Acquisition – Four Years After It Was Completed
05/05/2025 - India’s top court has nullified JSW Steel’s four-year-old acquisition of Bhushan Power and Steel and is ordering that the business be liquidated, according to reports.
According to The (India) Economic Times, the Supreme Court found that the way JSW Steel financed the US$2 billion acquisition violated the country’s Insolvency and Bankruptcy Code.
JSW Steel in 2021 acquired a 49% stake in Bhushan Power and Steel in and later raised its share in the business to 83%. Bhushan contributes about 10% to JSW Steel’s consolidated EBITDA, according to The Times.
According to The Hindu BusinessLine, the ruling represents a setback to the resolution of stressed assets under the Insolvency and Bankruptcy Code. Additionally, banks involved in the deal are faced with the prospect of having to make provisions for the money that was recouped through Bhushan’s bankruptcy process, the newspaper said.
JSW Steel in 2021 acquired a 49% stake in Bhushan Power and Steel in and later raised its share in the business to 83%. Bhushan contributes about 10% to JSW Steel’s consolidated EBITDA, according to The Times.
According to The Hindu BusinessLine, the ruling represents a setback to the resolution of stressed assets under the Insolvency and Bankruptcy Code. Additionally, banks involved in the deal are faced with the prospect of having to make provisions for the money that was recouped through Bhushan’s bankruptcy process, the newspaper said.
