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SC cancels JSW Steel’s ₹19,700 Cr BPSL acquisition deal.
Expected EBITDA dent of ₹4,500 Cr for JSW Steel.
Government working on policy response to safeguard industry interests.
The recent Supreme Court verdict rejecting JSW Steel’s resolution plan for Bhushan Power & Steel Ltd. (BPSL) is set to have significant financial implications for the steel major. The apex court’s decision has effectively halted JSW Steel’s long-awaited ₹19,700 crore acquisition of BPSL, a deal that had been under litigation since 2019.
According to industry experts, this ruling could dent JSW Steel’s production capacity plans and profitability estimates for FY2025-26. The company was banking on BPSL’s assets to strengthen its product mix and expand market presence, especially in the Eastern India region.
Analysts predict a potential 10-15% impact on production capacity growth and a ₹4,500 crore dent in JSW’s estimated EBITDA due to this setback. Moreover, operational synergies and debt restructuring advantages expected from the acquisition will now remain unrealised.
Meanwhile, the government is reportedly finalising an appropriate response and policy roadmap following the court’s judgement to safeguard the interests of creditors, employees, and industry stakeholders.
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