JSW Steel has determined the sale of as much as 50% of its shareholdings in Bhushan Power & Steel (BPSL) to JFE Steel of Japan to be an option under consideration. The price for the company is approximately Rs. 15,000–16,000 crores, or around US$1.8–2.0 billion, and the deal is expected to be finalized by December 2025.
The suggested transaction is a direct result of the Supreme Court of India's monumental ruling on September 26, 2025, that declared JSW’s Rs. 19,700 crore resolution plan for acquiring BPSL under the Insolvency and Bankruptcy Code (IBC) as legal.
BPSL, following the acquisition, has not only been operating robustly but also has plans to achieve a whopping 10 million tonnes per annum (mtpa) capacity with JFE.
For JSW, the transaction would fulfill various strategic goals, including the deleveraging of a net debt of more than Rs. 79,000 crores as of September 30, 2025, support for its domestic expansion target of 50 mtpa by FY 31, and the utilization of JFE's technology in high-end and electrical steel segments.
For JFE, this deal would also provide an opportunity to be part of the Indian market, which is a long-term investment, as the company already holds a 15% stake in JSW Steel since 2010.
Meanwhile, JSW has clearly stated that it is not making any commitments and is taking a wait-and-see approach. The company's representative mentioned that it would not be wise to say anything at this point since the company is still exploring "both organic and inorganic, including potential collaborations aimed at enhancing scale, efficiency, and global competitiveness" opportunities.
The transaction is indicative of a growing trend among Indian big players in the steel sector to strategically partner with foreign entities to enhance capacity, technology, and global competitiveness, while also mitigating the risks and debts associated with substantial investments in the sector.