JSW Energy sells shares worth ₹3,150 crore in JSW Steel as part of monetisation strategy

Shares of JSW Steel Ltd. changed hands in a block deal window on Monday, May 18, a few days after the company reported its March quarter results last week.

As many as 2.5 crore shares of JSW Steel, or 1% of its outstanding equity changed hands in the block deal transaction, according to available data.

Shares changed hands at an average price of ₹1,260 per share, marginally lower than Friday's closing price, taking the total transaction value to ₹3,150 crore.

Promoter The Seller

In an exchange filing, promoter JSW Energy said that it had divested 2.5 crore shares of the company through a block deal.

"The monetization of a part of the shareholding in JSW Steel not only releases capital for pursuing the company's growth strategy, but also improves Return on Capital Employed (RoCE) for the company, reinforcing the company's commitment to disciplined capital allocation and long-term value creation for shareholders," JSW Energy's release said.

After this transaction, JSW Energy has over 4.5 crore shares of JSW Steel.

Jefferies Raises Earnings Estimates

Brokerage firm Jefferies maintained its "buy" rating on JSW Steel and raised its price target to ₹1,650 from ₹1,400 earlier. This is the highest price target on the street for JSW Steel.

Jefferies' revised price target implies an upside potential of 29% from Friday's closing levels.

According to the brokerage, JSW Steel's new capacity target of 80 MT by financial year 2032 is likely to position the stock among the top three global steel producers.

"Its strategy of joint ownership of certain capacities with JFE and Posco has bolstered its balance sheet, enabling accelerated growth at a time when India is one of the few countries with rising steel demand," Jefferies wrote in its note.

As a result, the brokerage has increased its financial year 2027-2028 earnings per share (EPS) estimates by 8% and 21% respectively.

JSW Steel In Q4

JSW Steel's operating performance in the March quarter was ahead of expectations, while an exceptional gain from the BPSL-JFE slump sale aided its profitability growth.

The company's net debt-to-EBITDA fell to 3x from 3.75x earlier, while Net debt-to-equity fell to 1.25x from 1.75x earlier.

Buy Or Sell

38 analysts have coverage on JSW Steel, of which 21 have a "buy" rating, nine say "hold" and eight have a "sell" rating.

Shares of JSW Steel ended 1.4% lower on Friday at ₹1,279. The stock is up 10% so far in 2026.