New Delhi, May 6 -- JSW Steel Ltd's shares have lost 7% after the Supreme Court rejected its insolvency resolution plan for Bhushan Power & Steel Ltd (BPSL), citing gross violation of provisions of the Insolvency and Bankruptcy Code (IBC) and 'mala fide' intentions on the part of the company. JSW acquired BPSL for Rs.19,700 crore in March 2021, which implied a recovery of about 40% for financial creditors.

As per the court's ruling, JSW is expected to receive its acquisition price, although this could be a long-drawn process.

What are the other implications? BPSL contributed 13% of JSW's consolidated volumes and 10% of Ebitda for the nine months ended December (9MFY25). Its capacity was ramped up to 4.5 million tonnes per annum (mtpa) b...