JSW Steel Share Price Dips 2% After Lenders Seek BPSL’s EBITDA Share

Market Performance

JSW Steel share price declined by 2% on August 8, following a new development in the Bhushan Power & Steel Ltd (BPSL) case.

• At 12:45 PM, shares were trading at ₹1,042 apiece.
• The fall was triggered by a legal dispute concerning BPSL's resolution process under the Insolvency and Bankruptcy Code (IBC).

Main News

The decline in JSW Steel’s share price came after banks involved in the BPSL case approached the Supreme Court. They argued that the EBITDA generated during the insolvency process should be directed to creditors, not retained by JSW Steel.

• Banks claimed that the EBITDA during the IBC process was in 'thousands of crores'.
• The demand includes interest payments for the delay in the implementation of the resolution plan.

Company Details

JSW Steel Ltd had emerged as the successful resolution applicant for Bhushan Power & Steel Ltd.

• The deal was previously finalized under the IBC framework.
• However, legal disputes continue to emerge over the financial entitlements during the resolution process.
• The Supreme Court, last week, recalled its May 2025 judgment, which had earlier scrapped JSW Steel’s resolution plan for BPSL.

Summary

The recent dip in JSW Steel share price is directly linked to the ongoing legal proceedings involving Bhushan Power & Steel Ltd. Lenders are seeking their share of the company’s EBITDA generated during the insolvency period, which may impact the final financial settlements. As the case progresses, the market continues to react to these legal uncertainties.