JSW Steel may be forced to write off its ₹19,700 crore investment in Bhushan Power & Steel Ltd (BPSL), after the Supreme Court declared the 2021 acquisition illegal and ordered the company into liquidation. The decision caused JSW shares to fall 5.5% on Friday to ₹972.15, and could potentially shave off 10–15% of the company’s production capacity and around 10% of its consolidated EBITDA.
JSW Steel had acquired BPSL as part of its aggressive expansion plan and invested ₹3,500–4,500 crore post-acquisition to expand capacity from 2.75 MT to 4.5 MT. Plans were in place to raise it to 10 MT by 2030–31.
CLSA noted BPSL accounts for 10–11% of JSW’s FY25–27 EBITDA and highlighted the $800/tonne investment made for 3.5 MT…
