Why JSW Steel shares remain volatile despite Supreme Court overturning BPSL acquisition order
Published on 26/09/2025 11:42 AM
Shares of JSW Steel Ltd. witnessed a rebound on Friday, September 26, climbing up to 1.5 per cent from intraday lows after the Supreme Court overturned its previous order on the company’s acquisition of Bhushan Power and Steel.
The apex court dismissed the Committee of Creditors’ plea seeking ₹6,100 crore in additional dues, stating that the purpose of the Insolvency & Bankruptcy Code (IBC) – to turn around distressed companies – has been achieved. The court emphasized that penalizing JSW Steel for successfully restructuring Bhushan Power would have disastrous consequences and stressed the importance of sanctity of financial plans executed by the acquirer.
JSW Steel initially acquired a 49 per cent stake in Bhushan Power and Steel in 2021, securing a 2.75 MTPA steel-making capacity in Odisha. By October 2021, its stake rose to 83 per cent, transforming the company into a profitable entity while safeguarding thousands of jobs.
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After the verdict, JSW Steel shares surged 1.5 per cent, before settling back near intraday lows. The stock had previously fallen over 7 per cent on May 2, following the first Supreme Court judgment, and has recovered more than 15 per cent since then, reflecting renewed investor confidence.
The Supreme Court ruling provides clarity on corporate restructuring under the IBC, reinforcing JSW Steel’s turnaround strategy and long-term growth prospects. Analysts believe the judgment boosts investor confidence in the steel sector and highlights the value of well-executed corporate acquisitions.
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Senior Sub-editor at Zee Business English
shweta.shukla@India.com
Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.