JSW Steel to sell 50% in Bhushan Power and Steel to this Japanese steelmaker for ₹15,000–16,000 crore

The transaction, which could be completed this quarter, would give JFE a 50% stake in the subsidiary and help JSW, led by billionaire Sajjan Jindal, cut debt or fund expansion plans, according to the executive, who spoke on condition of anonymity.

The move comes after the Supreme Court in September upheld the decision of India’s largest steelmaker. ₹The 19,700-crore plan to take over bankrupt Bhushan Power and Steel Ltd marks the end of one of India’s longest-running bankruptcy battles.

“Talks regarding a second joint venture with JFE Japan have been ongoing for over a year. However, the bankruptcy battle in court has delayed such discussion,” the above-mentioned executive said. he said. JSW’s other joint venture with JFE Steel is JSW JFE Electrical. Steel.

Replying to mint A JSW spokesman said the company did not want to comment on speculation. “JSW Steel’s strategy includes evaluating various opportunities, both organic and inorganic, in India and abroad, including potential collaborations aimed at increasing scale, efficiency and global competitiveness,” the spokesperson said.

CNBC TV-18 Based on sources, it was first reported that 50% of JSW Steel’s shares were sold to the Japanese steel producer.

JSW Steel’s net debt ₹79,153 crore at the end of the July-September 2025 quarter, as per data cited by management during the post-earnings call. Net debt-In the same period, the EBITDA ratio was 2.97x. Ebitda refers to earnings before interest, taxes, depreciation and amortization.

“Absolute debt may increase or decrease this year,” Swayam Saurabh, JSW Steel’s chief financial officer, said in a post-earnings call in October. “But what we expect more positively is to keep leverage ratios, which is the ratio of net debt to EBITDA, below 3x.”

According to Sumar Kumar, vice-president of metals and mining at brokerage firm Philip Capital, the planned stake sale could be driven by JSW Steel’s high debt levels and heavy capital expenditures being prepared for capacity expansion projects. “This move will help the company deleverage and strengthen its balance sheet,” Kumar said.

Other joint venture

This will be JSW Steel’s second joint venture with JFE Steel Corporation. In May 2021, JSW Steel announced a contracting agreement with JFE Steel for the production of granular silicon steel sheets, which are mainly used to make the core of transformers and other large electrical machines. This has led to a joint venture called JSW JFE Electrical Steel to set up a steel plant in Karnataka in 2024.

Of course, in 2010, JFE Steel Corporation acquired a 15% stake in JSW Steel. ₹4,800 crore. He continues to hold this share. The company, owned by billionaire Sajjan Jindal, who wanted to reduce its debt, limited JFE’s investment to 15%.

Bhushan Steel’s story

in 2017 Bhushan Steel was among the 12 major defaulters flagged by the Reserve Bank of India. ₹47,000 crore to lenders.

JSW emerged as the highest bidder in 2018, outbidding rivals including Tata Steel, ending a long and contentious bankruptcy battle.

However, creditors such as former promoter Sanjay Singal, Kalyani Group’s Torsteel, Odisha state and other stakeholders have objected to the plan in many forums, citing irregularities and repeated delays. The issue was finally resolved in JSW’s favor by the Supreme Court two months ago.

JSW has increased Bhushan Steel’s capacity from 2.3 million tonnes per annum (mtpa) in 2017 to 4.5 mtpa in 2025. A capacity increase of 0.5 mtpa was also planned.

Apart from this, the steelmaker plans to increase its total capacity to 50 mtpa by 2030. There is a pipeline from 34.2 mtpa currently to reach 41.9 mtpa in FY28. An upcoming electric arc furnace (EAF) project in Andhra Pradesh will increase the capacity to 42.9 mtp per annum by FY29.

Beyond that CEO In an earlier interaction with Jayant Acharya Mint He said the company is considering options to expand capacity across its existing facilities at Vijayanagar, Bhushan Power & Steel and the DRI plant at Salav in Maharashtra, as well as a major greenfield steel plant at Paradip in Odisha.