JSW acquires Bhushan Power & Steel; creditors get Rs19,350 crore

  • BPSL has an integrated steel unit with a capacity of 2.5 million tonnes per annum in Jharsuguda, Orissa
  • JSW informed that as part of the payment, a sum of 8,614 crore in PSL, a subsidiary of the company, was arranged through a mix of equity, optionally convertible instruments and debt

Swaraj Singh Dhanjal
Published26 Mar 2021, 07:54 PM IST
Photo: Reuters
Photo: Reuters

Mumbai: Sajjan Jindal led steelmaker JSW Steel Ltd on Friday said that it has closed the acquisition of bankrupt Bhushan Power & Steel Ltd (BPSL) in a transaction that will see payment of Rs19,350 crore to BPSL's lenders, the company said in a filing to stock exchanges.

BPSL has an integrated steel unit with a capacity of 2.5 million tonnes per annum in Jharsuguda, Orissa. The company had a turnover of Rs8.635 crore in fiscal 2020. The company manufacturers billets, hot rolled and cold rolled coils.

JSW informed the stock exchanges that as part of the payment, a sum of 8,614 crore in Piombino Steel Limited (PSL), a subsidiary of the company, was arranged through a mix of equity, optionally convertible instruments and debt. The PSL funds included an infusion of Rs5087 crore by JSW Steel through a mix of equity and optionally convertible instruments, the company said.

Of this, an amount of 8,550 crore was invested in a special purpose vehicle (SPV), Makler Private Limited, the bidding company. The balance was funded by short term loans.

"This is an important milestone as it is the largest acquisition in the history of JSW Steel," write Sajjan Jindal in an email to BPSL employees.

"This acquisition not only aligns with our core business and purpose but also establishes our presence and accelerates our growth vision in eastern India, he added.

Also on Friday, another group company JSW Hydro Energy Ltd will raise up to $750 million in debt through issuance of bonds in the international market.

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Business NewsCompaniesNewsJSW acquires Bhushan Power & Steel; creditors get Rs19,350 crore
MoreLess
First Published:26 Mar 2021, 07:54 PM IST
Most Active Stocks
Market Snapshot
  • Top Gainers
  • Top Losers
  • 52 Week High
Recommended For You
    More Recommendations
    Gold Prices
    • 24K
    • 22K
    Fuel Price
    • Petrol
    • Diesel
    Popular in Companies