JSW Steel block deal sees GQG, SBI MF as key buyers

GQG Partners and SBI Mutual Fund emerged as key buyers in a large block deal involving JSW Steel on Monday, May 18. Valued at approximately ₹3,150 crore, the JSW Steel block deal saw JSW Energy offload 2.5 crore shares, or about 1% equity, at an average price of ₹1,260 per share. GQG acquired 1.5 crore shares, while SBI Mutual Fund picked up the remaining 1 crore shares.

JSW Steel shares declined during the early session, touching an intraday low of ₹1,265.20 on the NSE. The block was executed at a roughly 1.5% discount to the previous closing price of ₹1,278.80.

JSW Energy stated that the stake reduction aligns with its disciplined capital allocation strategy. The company plans to redeploy the proceeds towards growth initiatives and improve its return on capital employed.

Following the transaction, JSW Energy continues to hold more than 4.5 crore shares in JSW Steel, maintaining a sizeable stake despite the recent selldown.

Brokerage firm Jefferies has reaffirmed its bullish stance on the stock, retaining a “buy” rating

while raising its price target to ₹1,650 from ₹1,400 earlier. The revised target is the highest on the Street and suggests a potential upside of around 29% from recent closing levels.

Jefferies highlighted JSW Steel’s ambitious expansion plans, with capacity expected to reach 80 million tonnes by FY32, which could place the company among the world’s top three steel producers.

The brokerage also pointed to the company’s strategic partnerships with global players such as JFE and Posco, stating that shared ownership of certain assets has strengthened the balance sheet and positioned the firm for faster growth in a favorable domestic demand environment.

Strong quarterly performance further supports the positive outlook.

JSW Steel reported a 14% year-on-year rise in revenue to ₹51,180 crore for the March quarter, while EBITDA jumped over 40% to ₹8,634 crore. Margins also improved significantly, exceeding market expectations and prompting Jefferies to raise its FY27 and FY28 earnings estimates.