The Big Forge: JSW and JFE Steel Strike ₹32,000 Crore JV Deal

JSW Steel is seeking shareholder approval for a strategic joint venture with Japan’s JFE Steel Corporation aimed at strengthening its balance sheet and supporting its long-term expansion plans.

As part of the proposal, the steel-making assets of Bhushan Power & Steel Ltd (BPSL), which JSW Steel acquired through insolvency proceedings in 2021, will be transferred to a new 50:50 joint venture. JFE Steel will invest ₹15,750 crore to acquire its stake. The transfer of assets will be executed through a slump sale to a JSW subsidiary valued at ₹24,483 crore.

The transaction is expected to generate cash inflows of ₹32,350 crore, leading to a significant reduction in JSW Steel’s consolidated net debt by ₹37,250 crore. This deleveraging will provide the company with greater financial flexibility to accelerate its domestic capacity expansion plans through 2031.

JSW Steel will retain a 50 percent ownership in the joint venture, allowing it to participate in the future growth of the BPSL business while benefiting from JFE Steel’s global expertise. Company management has described the move as strategically sound and aligned with its long-term growth objectives.

News by Rahul Yelligetti.