The Exchange has sought clarification from JSW Steel Limited with respect to recent news item captioned Setback for JSW Steel as SC directs liquidation of Bhushan Power and Steel. The response from the Company is awaited.
JSWSTEEL · price
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Awaiting price reaction for this filing.
The NSE has asked JSW Steel to clarify a news report that the Supreme Court has directed the liquidation of Bhushan Power and Steel (BPSL). JSW Steel had earlier won the bid to acquire BPSL under India's insolvency resolution process. The Supreme Court order means JSW Steel may not be able to retain control of BPSL's assets and will likely lose the value it had paid for the acquisition. The company's official response is still awaited. This is being treated as material news because BPSL was a major acquisition for JSW Steel and the liquidation will impact its plans and financials.
Negative for JSW Steel shareholders — the SC liquidation order is a major setback that could lead to a financial loss on the BPSL acquisition and uncertainty around future capacity and earnings from those assets.