On September 26, 2025, JSW Steel received a significant legal relief from the Supreme Court regarding its acquisition of Bhushan Power and Steel. However, the company's shares failed to rally beyond an initial uptick of 1.5%, reflecting tempered market reactions driven by prior expectations and recent price movement.
The Supreme Court dismissed a plea by the Committee of Creditors demanding ₹6,100 crore in additional dues from JSW Steel. The apex court acknowledged JSW's investment in turning Bhushan Power and Steel into a profitable entity and emphasised that the purpose of the Insolvency and Bankruptcy Code (IBC) had been fulfilled. Furthermore, the verdict stated that penalising JSW after the successful revival of the company would contradict the IBC’s intent.
The stock had already surged approximately 15% since dropping below ₹1,000 on May 2, 2025, when initial rulings around the dispute surfaced. As a result, the final verdict didn’t trigger a larger rally as much of the relief was seen as being previously priced in by the market.
The Supreme Court verdict also noted that delays were primarily due to property attachments by the Enforcement Directorate, not due to any fault of JSW Steel. This clarification removed the overhang of potential penalties but added little to investor sentiment, as concerns of asset reversal were already considered unlikely.
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JSW Steel had acquired a 49% stake in Bhushan Power and Steel in 2021, which it increased to 83% by October that year. The acquisition added 2.75 MTPA steel-making capacity in Odisha, bolstering JSW’s overall production footprint in eastern India. Still, the immediate market reaction suggests investors await more concrete financial performance data rather than legal breakthroughs alone.
On September 26, 2025, JSW Steel share price opened at ₹1,155.00 on NSE, above the previous close of ₹1,148.50. During the day, it surged to ₹1,167.90 and dipped to ₹1,133.10. The stock is trading at ₹1,134.10 as of 11:19 AM. The stock registered a moderate decline of 1.25%.
Over the past week, it has moved up by 1.53%, over the past month, it has moved up by 10.47%, and over the past 3 months, it has moved up by 10.13%.
Despite a favourable Supreme Court verdict voiding ₹6,100 crore in dues, JSW Steel shares failed to sustain their gains due to already priced-in optimism and limited surprise. The focus now shifts to operational performance and integration outcomes as key market drivers going forward.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Sep 26, 2025, 12:13 PM IST
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