JSW Steel Shares Tumble Over 6% After Supreme Court Ruling on Bhushan Power & Steel Deal

On May 2, 2025, JSW Steel shares dropped more than 6% after the Supreme Court declared the resolution plan for Bhushan Power & Steel Ltd. — in which JSW Steel was the successful bidder — as “illegal.”. JSW Steel shares touched the day low of ₹953.90 at 12:45 PM after opening at ₹1,025.90.

JSW Steel and Bhushan Power Background

JSW Steel had acquired a 49% stake in Bhushan Power & Steel in 2021 through the Insolvency and Bankruptcy Code (IBC) process, gaining access to a 2.75 million tonnes per annum (MTPA) steel manufacturing facility in Odisha. By October 2021, the company had increased its stake to 83%.

The apex court cited two key violations in its ruling and ordered the liquidation of Bhushan Power & Steel. First, the acquisition was executed through a mix of equity and optionally convertible debentures, despite the court’s earlier position that such takeovers must be conducted solely through equity. Second, the resolution plan was not implemented within the mandated timeline.

Bhushan Power & Steel currently contributes approximately 10% to JSW Steel’s consolidated EBITDA and about 12.5% to 13% of its total production capacity of 37.5 MTPA, based on the latest quarterly data.

JSW Steel Italy Signed a Contract with the Italian Government

JSW Steel Italy Piombino S.P.A. (JSW Italy), a wholly owned subsidiary of JSW Steel Limited, manufactures and supplies rails through its rail mill facility located in Piombino, Italy, which has an annual production capacity of 0.32 million tonnes.

In a significant step toward industrial revitalisation, JSW Italy has signed a Development Contract with the Ministry of Enterprise and Made in Italy (MIMIT), the Tuscany Region, and INVITALIA (the National Agency for Inward Investment and Economic Development). This agreement aligns with the Memorandum of Understanding (MoU) signed on March 1, 2024, between JSW Steel Italy SrL—the parent company of JSW Italy—and MIMIT.

The Development Contract aims to rejuvenate the historic ‘Steelworks of Piombino’ by modernising existing infrastructure and boosting industrial operations at the site.

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