India’s Supreme Court has approved JSW Steel Limited’s $2.3 billion acquisition of Bhushan Power and Steel (BPSL), reversing its earlier decision to block the deal. The apex court’s ruling, delivered on Friday, September 26, is seen as a major boost for investor confidence within the framework of the country’s Insolvency and Bankruptcy Code (IBC).
Court’s U-turn on BPSL case
In May 2025, the court had rejected JSW’s takeover, almost six years after the resolution plan was first cleared under the IBC. The decision unsettled investors and raised questions over the credibility of India’s bankruptcy reforms. Following this, JSW Steel filed a review petition, urging the court to reconsider.
In its latest verdict, the Supreme Court acknowledged JSW’s significant investments in modernization of BPSL and noted that the takeover safeguarded thousands of jobs by ensuring the company’s continuity as a “going concern”.
Significance for Indian steel sector
BPSL operates a fully integrated 3 million mt per year steel mill, producing pig iron, DRI, billets, hot rolled coils, cold rolled coils, GP/GC sheets, precision tubes, black and galvanized pipes, cable tapes, TMT bars, and alloy wire rods.
Analysts say the Supreme Court’s green light for JSW Steel not only revives a critical distressed steel asset but also reinforces the credibility of India’s bankruptcy code, encouraging global investors eyeing opportunities in the Indian steel sector.
