JSW Steel on Friday said it has completed the acquisition of bankrupt Bhushan Power & Steel Ltd (BPSL).
The company paid Rs 19,350 crore to the financial creditors of BPSL, JSW Steel said in an exchange filing.
The acquisition will help JSW Steel establish its presence, especially in flat steel business, in the eastern region of India.
BPSL has an integrated steel unit with liquid steel capacity of more than 2.5 million tonnes per annum in Jharsuguda, Odisha. It also has downstream facilities in Kolkata and Chandigarh. Its turnover during the year ended March 31, 2020 stood at Rs 8,635.14 crore.
JSW Steel's resolution plan for BPSL, which was admitted for insolvency proceeding under the Insolvency and Bankruptcy Code, was approved by the National Company Law Tribunal in September 2019 and National Company Law Appellate Tribunal in February 2020. However, the case was stuck in courts as the Enforcement Directorate had attached BPSL's properties.
However, earlier this month, JSW Steel had reached an agreement with BPSL's lenders that they would refund the amount to the company in case of an adverse ruling against it by the Supreme Court, where BPSL case is being heard.
SBI is the largest lender to BPSL, followed by PNB, ACRE, Canara Bank, among others.