JSW Steel set to acquire Bhushan Power and Steel
Steel

JSW Steel set to acquire Bhushan Power and Steel

West Wave Maritime and Allied Services Pvt Ltd, a promoter group entity belonging to JSW Group, has raised Rs 2,500 crore via non-convertible debentures, tying up the last mile funding for the acquisition of Bhushan Power and Steel Ltd (BPSL).

JSW Steel plans to close the Rs 19,700 crore deal by March 31. The process will involve transferring the amount articulated in the resolution plan to the creditors, largely consisting of state-run banks and financial institutions.

Sources told the media that the entire acquisition would be funded by borrowing, at least for now. JSW would look to bring in equity only at a later date. The entire bulwark will be done by JSW alone, unlike in the case of Monnet Ispat, where it was only a minority equity partner.

BPSL is one of the 12 large companies which were sent to the bankruptcy court by a diktat of the Reserve Bank of India (RBI) in 2017. After an event of twists and turns, JSW emerged as the highest bidder for the company, which operates a 2.8 million tonne steel plant in Odisha.

Monnet Ispat, which was also on the list of the 12 companies, was acquired by JSW in association with AION Capital, which picked up a 74% stake. However, the Jindals appear to be going alone for BPSL.

The arrangement to finance the entire transaction by debt comes in the background of the conditional payment JSW will make to the financial creditors. At least two court cases, one by the Enforcement Directorate and another by erstwhile promoter Sanjay Singhal, are still pending in the Supreme Court, which may throw a spanner to the resolution plan.

The committee of creditors agreed on March 5 that they would return the money paid by JSW in the case of an adverse judgment by the apex court, which may restrain the execution of the resolution plan. Financial creditors with a share of 97% of the total debt exposure voted in favour of this arrangement.

The State Bank of India (SBI) will be the biggest beneficiary having Rs 9,825.67 crore admitted claim, followed by Punjab National Bank’s Rs 4,399 crore. An asset reconstruction firm has a debt of Rs 5,275 crore, while Canara Bank and Allahabad Bank have Rs 2,244 crore and Rs 2,130 crore debt, respectively.

Apart from the steel plant in Odisha, unlisted BPSL owns a power plant and several downstream units across north India.

Image Source


Also read: JSW Steel to raise Rs 7k cr for BPSL acquisition

West Wave Maritime and Allied Services Pvt Ltd, a promoter group entity belonging to JSW Group, has raised Rs 2,500 crore via non-convertible debentures, tying up the last mile funding for the acquisition of Bhushan Power and Steel Ltd (BPSL). JSW Steel plans to close the Rs 19,700 crore deal by March 31. The process will involve transferring the amount articulated in the resolution plan to the creditors, largely consisting of state-run banks and financial institutions. Sources told the media that the entire acquisition would be funded by borrowing, at least for now. JSW would look to bring in equity only at a later date. The entire bulwark will be done by JSW alone, unlike in the case of Monnet Ispat, where it was only a minority equity partner. BPSL is one of the 12 large companies which were sent to the bankruptcy court by a diktat of the Reserve Bank of India (RBI) in 2017. After an event of twists and turns, JSW emerged as the highest bidder for the company, which operates a 2.8 million tonne steel plant in Odisha. Monnet Ispat, which was also on the list of the 12 companies, was acquired by JSW in association with AION Capital, which picked up a 74% stake. However, the Jindals appear to be going alone for BPSL. The arrangement to finance the entire transaction by debt comes in the background of the conditional payment JSW will make to the financial creditors. At least two court cases, one by the Enforcement Directorate and another by erstwhile promoter Sanjay Singhal, are still pending in the Supreme Court, which may throw a spanner to the resolution plan. The committee of creditors agreed on March 5 that they would return the money paid by JSW in the case of an adverse judgment by the apex court, which may restrain the execution of the resolution plan. Financial creditors with a share of 97% of the total debt exposure voted in favour of this arrangement. The State Bank of India (SBI) will be the biggest beneficiary having Rs 9,825.67 crore admitted claim, followed by Punjab National Bank’s Rs 4,399 crore. An asset reconstruction firm has a debt of Rs 5,275 crore, while Canara Bank and Allahabad Bank have Rs 2,244 crore and Rs 2,130 crore debt, respectively. Apart from the steel plant in Odisha, unlisted BPSL owns a power plant and several downstream units across north India. Image Source Also read: JSW Steel to raise Rs 7k cr for BPSL acquisition

Next Story
Infrastructure Transport

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

A new greenfield highway connecting Kharagpur in West Bengal and Visakhapatnam in Andhra Pradesh, passing through Odisha, is set to be constructed soon. This expressway is poised to become a vital logistics corridor, enhancing high-speed transportation in the region. Works Minister Prithviraj Harichandan shared that preliminary preparations for the project have already commenced. He emphasised that the expressway would play a crucial role in the Gati Shakti Framework of the Central government, describing it as a groundbreaking initiative in road construction for Odisha. Greenfield roads typi..

Next Story
Infrastructure Urban

LTTS wins project to develop smart cities in Colorado USA

Mid-sized Indian IT services company L&T Technology Services (LTTS) announced on Monday a strategic partnership with the Colorado Smart Cities Alliance (CSCA) to develop smart city projects across Colorado by integrating innovation and technology. In a regulatory filing, LTTS stated that the collaboration would utilize its advanced engineering expertise to support CSCA's mission of enhancing urban living and creating sustainable ecosystems through smart city solutions. The partnership aims to develop sustainable, efficient, and technologically advanced communities by pooling resources and exp..

Next Story
Infrastructure Transport

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Bengaluru’s metro network is set for a major expansion, aiming to extend its total length to 175 km by 2026. This ambitious project is part of the Namma Metro initiative, designed to improve connectivity across the city, alleviate traffic congestion, and promote sustainable urban mobility. The expansion involves constructing new metro corridors, such as the Purple Line and the Outer Ring Road-Airport Line, which will link major city hubs, commercial centres, and residential areas. This development is expected to enhance accessibility for commuters throughout Bengaluru. A key highlight of t..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000