Supreme Court Order Could Send Bhushan Power & Steel Back on the Auction Block

Days after the Supreme Court’s ruling, a Business Standard report stated that several national and international players are now eyeing the assets of Bhushan Power and Steel. Although the renewed auction may take some time, top steelmakers are expected to rebid for the company.

The report added that Naveen Jindal’s Jindal Steel and Power may make an offer for BPSL. Furthermore, JSW Steel, despite its previous bid being rejected, could still re-enter the race. Rahul Dwarkadas from Veritas Legal told Business Standard that there is currently no legal hurdle preventing JSW Steel from rebidding, with the only caveat being any specific observation made by the apex court.

JSW Steel’s 2021 Acquisition Set Aside by Supreme Court

In 2021, 4 years ago, JSW Steel had paid ₹19,700 crore of Bhushan Power and Steel’s (BPSL) debt to creditors. The company had acquired BPSL under the Insolvency and Bankruptcy Code (IBC), and under its leadership, the operational capacity of BPSL rose significantly from 2.75 million tonnes to 4.5 million tonnes.

However, in a landmark judgment on May 2, the Supreme Court of India rejected JSW Steel’s resolution plan and ordered the liquidation of Bhushan Power and Steel. The court cited two primary reasons for this decision: JSW’s use of a mix of equity and optionally convertible debentures (OCDs) to complete the acquisition, and the failure to implement the plan within the timeframe mandated under insolvency law.

Read More: JSW Group Eyes ₹50,000 Crore Green Steel Investment for Europe

JSW Steel Share Performance 

As of May 05, 2025, at 3:05 PM, JSW Steel share price is trading at ₹955.90 per share, reflecting a decline of 1.78% from the previous closing price. Over the past month, the stock has surged by 0.14%.

Conclusion

With Bhushan Power and Steel now set for liquidation, the case has reignited competition among major steel producers. As the auction process prepares to unfold again, BPSL remains a valuable asset in the domestic steel sector.

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