Jsw Steel may soon sell 50% stake in Bhushan Steel.
JSW Steel is planning to sell 50 percent stake in Bhushan Power and Steel. This company was acquired by JSW Steel in 2019. According to sources aware of this development, Japanese steel maker JFE Steel Corp is the frontrunner to acquire this stake. At the end of the September quarter, JFE Steel held 15 per cent stake in JSW Steel. This plan of the country’s largest steel maker company comes just a few weeks after the Supreme Court approved the resolution plan for Bhushan Power. Earlier in May, it was rejected and liquidation of the company was ordered.
The deal may be completed by December
Sources said that the value of 50 percent stake in the company is likely to be around Rs 15,000-16,000 crore. This deal, which has been going on for more than a year, is likely to be completed by December. He told that it was stopped temporarily due to the decision of the Supreme Court. A JSW Steel spokesperson said in an ET report that JSW Steel’s strategy includes evaluating various opportunities, whether organic or inorganic, in India and abroad – including potential collaborations aimed at enhancing scale, efficiency and global competitiveness. He further said that however, we would not like to comment on speculations.
Company was purchased in 2019
JSW Steel’s biggest acquisition till date, Bhushan Power, was bought under the Insolvency and Bankruptcy Code in 2019 for Rs 19,700 crore. Since becoming a subsidiary in October 2021, JSW Steel has spent around Rs 3,500-4,500 crore for the development and maintenance of Bhushan Power. After increasing the capacity to 4.5 million tonnes from 2.75 million tonnes at the time of acquisition, JSW Steel plans to increase it to 5 million tonnes by September 2027 by clearing the bottlenecks.
How much loan is there on the company?
In the media report, an analyst, on the condition of anonymity, said that debt reduction could be the only reason due to which the company wants to sell this stake, but this is not a very common thing for the company. He said that they have always been taking loans for growth. JSW Steel’s net loan at the end of September 2025 was Rs 79,153 crore, which is less than Rs 85,098 crore last year.