JFE Steel Invests ₹7,875 Crore in JSW Kalinga Steel
New Delhi, March 30 – JFE Steel Corporation, a leading Japanese steel manufacturer, has invested ₹7,875 crore in JSW Kalinga Steel Ltd, a subsidiary of JSW Steel, led by Sajjan Jindal. This investment represents the first tranche of JFE’s planned 25 per cent stake in the company.The investment, comprising 2,26,94,524 equity shares, was allotted to JFE Steel on March 30, 2026, according to a BSE filing by JSW Steel. This transaction establishes joint control over JSW Kalinga and its wholly owned subsidiary, JSW Sambalpur Steel Ltd.
Following the allotment and subsequent board changes at JSW Kalinga, as per the joint venture agreement (JVA), JFE Steel is set to acquire an additional 25 per cent stake in JSW Kalinga for ₹7,875 crore, completing the planned investment.
Earlier this year, JSW Steel announced a strategic joint venture partnership with JFE Steel Corporation, Japan (JFE). This collaboration will incorporate JSW Steel’s arm, Bhushan Power & Steel Ltd’s (BPSL) integrated steel plant in Odisha.
As part of the agreement, JFE will invest ₹15,750 crore in two tranches. The initial tranche of ₹7,875 crore covers the 25 per cent stake acquisition. A slump sale of ₹24,483 crore will transfer the steel business undertaking of Bhushan Power and Steel Ltd (BPSL) to a 50:50 joint venture with JFE.
JSW Steel acquired BPSL in 2021 through the Insolvency and Bankruptcy Code (IBC) process. The company has since transformed the 2.75 million tonnes per annum (MTPA) distressed unit into a profitable operation with an expanded capacity of 4.5 MTP, currently employing 25,000 people.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.