JSW Steel.
JSW Sambalpur Steel Limited Wins ₹12,000 crore SBI Funding for Bhushan Power & Steel Limited: Mumbai: In a significant boost to India’s steel sector, JSW Sambalpur Steel Limited has secured a ₹12,000 crore term loan facility from State Bank of India to part-finance its acquisition of the steel business of Bhushan Power & Steel Limited. The transaction was advised by Khaitan & Co.
The financing marks a major milestone in the company’s expansion strategy, enabling it to acquire Bhushan Power & Steel’s operations through a slump sale on a going concern basis. This structure ensures that the business is transferred as a fully operational entity, allowing continuity in production and workforce integration.
Major Financing Milestone
The ₹12,000 crore facility underscores the scale and strategic importance of the acquisition. As competition intensifies in India’s steel industry, access to large institutional funding remains critical for companies seeking to expand capacity and market share.
Industry observers note that the deal reflects a broader trend of consolidation within the sector, driven by rising infrastructure demand, rapid urbanisation, and policy support for domestic manufacturing.
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Khaitan & Co’s Legal and Advisory Teams
Khaitan & Co acted as legal counsel to the borrower, with the transaction team comprising advocate Manisha Shroff, advocate Arijit Sarkar, advocate Siddhant Shetty, advocate Nilanjan Kumar, and advocate Shivansh Jain.
They worked alongside advocate Ravishankar Jayaraman, advocate Kunal Raval, advocate Keshav Anand, advocate Nitesh Sanghi, and advocate Khushnaaz Anklesaria, who also represented the borrower.
On behalf of the lender, State Bank of India was advised by advocate Reema Mudgal, advocate Mahesh Wanegaonkar, advocate Jaymon George, and advocate Diwakar.
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State Bank of India.
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Strategic Acquisition Structure
The slump sale mechanism adopted for the transaction allows JSW Sambalpur Steel Limited to acquire the entire business undertaking of Bhushan Power & Steel Limited as a single unit, rather than through fragmented asset purchases. This approach is particularly effective in preserving operational continuity and streamlining post-acquisition integration.
Such deal structures are commonly employed in large industrial acquisitions where maintaining uninterrupted production and workforce stability is crucial.
India’s steel industry is undergoing a phase of transformation, with increased consolidation and expansion activities shaping its future. Strategic acquisitions backed by strong financial arrangements are expected to remain a defining feature of the sector.
With the loan facility now secured, JSW Sambalpur Steel Limited is well-positioned to advance its acquisition plans and strengthen its standing in the domestic steel market, reinforcing its role as a key player in the industry.
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