JSW Steel shares see choppy moves after Supreme Court overturns decision on BPSL acquisition

Shares of JSW Steel Ltd. surged from the lows of the day, gaining as much as 1.5% on Friday, September 26, after the Supreme Court overturned its own order with regards to the former's acquisition of Bhushan Power and Steel.

The Supreme Court has rejected the Committee of Creditors' plea, seeking ₹6,100 crore in additional dues. "Purpose of the IBC of turning the company around has been achieved, and it cannot be penalised for that," according to the judgment.

The Supreme Court judgement stated that it will be rejecting the arguments of the Committee of Creditors, and that the results will be 'disastrous' if contentions of past promoters were accepted.

JSW had invested huge amount in to Bhushan Power and Steel and turned it into a profitable entity with thousands of people, the apex court judgment added, stating that there has to be some sanctity to the financial plan provided by JSW Steel.

JSW Steel had acquired a 49% stake in Bhushan Power and Steel through the Insolvency & Bankruptcy Process in 2021, getting a 2.75 MTPA steel-making capacity in Odisha. By October 2021, JSW Steel had increased that stake to 83%.

The stock had declined over 7% on May 2,

when the Supreme Court had first announced its judgment, from where, the stock has already recovered over 15%.

Shares of JSW Steel are back to the lows of the day, after witnessing a brief spike of as much as 1.5% after the verdict was announced.