JSW Steel Share Price: Why Sajjan Jindal-Led Firm's Stock Jumped Nearly 3% Today?

The shares of steel manufacturer JSW Steel led by Sajjan Jindal gained as much as 2. 68 per cent to Rs 979.75 after the Supreme Court ordered to maintain the status quo on the Bhushan Power and Steel Ltd.

This marked the biggest intraday gain since May 12 this year.

The counter has risen 14.5 per cent this year, compared to a 5.6 per cent advance in the benchmark Nifty50. JSW Steel has a total market capitalisation of Rs 2.5 trillion.

JSW Steel's resolution plan for Bhushan Power

The Supreme Court on Monday directed that the status quo be maintained on Bhushan Power & Steel for now. The court issued the direction following a plea filed by JSW Steel, as it seeks a stay on liquidation proceedings for Bhushan Power.

Earlier this month, India's apex court set aside a resolution plan submitted by JSW Steel for BSPL, holding it illegal and in violation of the Insolvency and Bankruptcy Code (IBC).

JSW had acquired BPSL through the corporate insolvency resolution process (CIRP) more than five years ago for nearly Rs 20,000 crore. and has since made substantial investments in the company.

The review petition is significant for JSW Steel, not just from a legal standpoint but also due to the financial and strategic importance of BPSL to its domestic operations. 

A bench comprising Justices Bela M Trivedi and Satish Chandra Sharma had criticised the conduct of all key stakeholders in the resolution process, the resolution professional, the Committee of Creditors (CoC) and the National Company Law Tribunal (NCLT), for enabling what it dubbed as "flagrant violation" of the IBC and ordered the liquidation of BSPL under the IBC.

The bench mentioned that the CoC was found to have approved JSW's resolution plan without proper application of its commercial wisdom.

As of 2:48pm on Monday, the shares of JSW Steel was trading 2.13 per cent higher at Rs 1,030.