JSW Steel Proposes Mega JV with JFE, Aims to Raise ₹32,350 Crore

New Delhi: JSW Steel Limited has taken a major step to strengthen its finances and fund its expansion plans by seeking shareholder approval for a strategic joint venture with Japan’s JFE Steel Corporation. The deal involves the steel-making assets of Bhushan Power & Steel Ltd (BPSL), which JSW acquired through insolvency proceedings in 2021.

Under the proposed arrangement, these assets will be transferred to a new 50:50 joint venture company, with JFE investing ₹15,750 crore to acquire its half stake. The transfer of assets will be executed through a slump sale to a JSW subsidiary for a total consideration of ₹24,483 crore.

This move is expected to bring significant financial benefits for JSW Steel. The company anticipates total cash inflows of around ₹32,350 crore, which, combined with the deconsolidation of BPSL’s existing debt, could reduce JSW Steel’s consolidated net debt by nearly ₹37,250 crore. Such a reduction will substantially strengthen the company’s balance sheet, giving it the financial flexibility to accelerate its domestic production capacity expansion plans through 2031. Importantly, JSW Steel will continue to retain a 50% stake in the joint venture, allowing it to share in the future growth of the BPSL business, now backed by JFE’s technology and global expertise.

Company management has described the transaction as strategic and financially prudent. By creating this joint venture, JSW Steel aims to establish “two engines of growth”: a leaner, debt-light JSW Steel focused on its own projects, and a high-growth BPSL business powered by JFE’s technical know-how and investment. The partnership is expected to unlock value, accelerate production, and support the company’s long-term growth objectives.

Shareholders whose names appear in the company’s records as of January 2, 2026, will be able to vote electronically from January 6 to February 4, 2026. They will be asked to approve three key resolutions related to the joint venture and asset transfer. The results of the postal ballot are expected to be announced on or before February 6, 2026.