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JSW Steel, JFE Form 50:50 JV for BPSL With Rs 15,750 Crore Investment

The deal monetizes BPSL to fund expansion in India.

Overview

  • The steel business of Bhushan Power & Steel will be transferred to the joint venture via a slump sale for Rs 24,483 crore in cash, implying an equity valuation of about Rs 31,500 crore.
  • JFE Steel will invest Rs 15,750 crore in two tranches to acquire a 50% stake in the new entity.
  • JSW Steel expects total deleveraging of Rs 37,258 crore on its balance sheet through the transaction and associated debt transfer.
  • The partners target production capability of roughly 10 million tonnes in the next few years from BPSL’s current integrated capacity of about 4.5 MTPA in Odisha.
  • Governance will feature equal board representation with rotating management, and JFE highlights its technology to boost value‑added steel output.