JSW Steel Limited provided an update regarding its 50:50 joint venture with Japan’s JFE Steel Corporation concerning the steel business of Bhushan Power and Steel Limited. JFE Steel successfully completed its first tranche of investment, injecting Rs. 7,875 crores. This investment resulted in the allotment of 2,26,94,524 equity shares of JSW Kalinga, giving JFE a 25% fully diluted shareholding as of March 30, 2026. Consequently, JSW Steel and JFE have established joint control over JSW Kalinga and its subsidiary.
Joint Venture Investment Update
JSW Steel Limited announced a significant development concerning its strategic 50:50 joint venture with JFE Steel Corporation, Japan, aimed at integrating the steel business of Bhushan Power and Steel Limited. This update follows previous communications issued on December 3, 2025, and March 27, 2026.
First Tranche of Investment Completed
The company confirmed that JFE Steel has successfully completed the first tranche of its planned investment. JFE invested Rs. 7,875 crores into JSW Kalinga Steel Limited (“JSW Kalinga”).
- Allotment Details: Consequent to this investment, 2,26,94,524 equity shares of JSW Kalinga were allotted to JFE today (March 30, 2026).
- Shareholding Impact: This allotment results in JFE holding a 25% shareholding in JSW Kalinga on a fully diluted basis.
Establishment of Joint Control
As a direct result of this allotment and subsequent changes to the board composition of JSW Kalinga, as defined in the Joint Venture Agreement dated December 3, 2025, JSW Steel and JFE have officially established joint control over JSW Kalinga and its wholly owned subsidiary, JSW Sambalpur Steel Limited.
Future Commitments
The announcement reiterates that the acquisition of the subsequent 25% stake (also on a fully diluted basis) in JSW Kalinga by JFE for an additional Rs. 7,875 crores will be completed in accordance with the terms stipulated in the Joint Venture Agreement.
Source: BSE
