Impact of overturned JSW and Bhushan Steel resolution plan

Implications of recent SC order on liquidation of Bhushan Power & Steel Limited (BPSL)

Recently SC declared JSW Steel’s Rs 19,700 crore resolution plan for BPSL “illegal” and ordered the company’s liquidation due to many reasons, viz., Violation of IBC Section 30(2) – Use of OCDs instead of equity, Delay in implementation, Misrepresentation of facts by JSW Steel, Failure of CoC, and resolution professional.

JSW Steel had acquired a 49% stake in BPSL in 2021 through the IBC process, gaining access to a 2.75 MTPA steel manufacturing facility in Odisha. By October 2021, the company had increased its stake to 83%.

Key violations

1. The acquisition was executed through a mix of equity and optionally convertible debentures, despite the court’s earlier position that such takeovers must be conducted solely through equity to keep the process transparent.
2. The resolution plan was not implemented within the mandated timeline.

On JSW Steel Limited

1. JSW Steel shares fell 5.46% to ₹972.15 on BSE; the market cap dropped to ₹2.37 lakh crore post the order of the liquidation.
2. Loss of 2.75 mtpa capacity in Odisha’s manufacturing facility; This accounted for 12.5% of JSW Steel’s total capacity: jeopardizes plan to expand to 5 mtpa by FY27.
3. There will be of Rs 4,000–4,500 crore shortfall in FY25 (13% of JSW capacity, 10–11% EBITDA loss).
4. Potential lower recoveries than 41.03% offered under JSW plan; PSU banks like SBI & PNB affected.
5. BPSL contributed approximately ₹21,800 crore in revenue and ₹671 crore in profit for FY24. Its liquidation could result in a revenue loss of around ₹22,000 crore for JSW Steel.
6. JSW had planned to expand this to 5 MTPA via Phase II. The ₹4,488 crore capex earmarked for this is now at risk. Some expansion-related facilities have already been commissioned.
7. A likely write-down of nearly 25,000 crores (investment + capex already incurred).
8. Reversal of tax benefits amounting to approximately ₹7,000 crore that were availed during the BPSL acquisition.
9. Despite financial creditors agreeing to refund JSW Steel if the Supreme Court invalidates the resolution plan or denies immunity concerning money-laundering cases involving previous promoters, analysts believe JSW Steel could still incur substantial losses.
10. Need to see how the impact will unfold on rights over earnings and cash outflow on this asset for the past four years, on opportunity cost for JSW on acquisition value, and on legal recourse available with JSW. But as of now, even with the refund, it looks like a loss of about INR 15,000 crore for the company."

 

On Banks

1. SW Steel had also availed a loan of ₹10,800 crore from State Bank of India (₹7,300 crore) and Bank of Baroda (₹3,500 crore) to acquire BPSL.
2. BPSL itself also has total secured loans of around ₹4,000 crore.
3. With the resolution now overturned, these recoveries are at risk of being legally questioned or reversed during liquidation. If JSW Steel’s investment is deemed invalid, banks could be forced to reclassify the exposure as non-performing again, potentially triggering fresh provisions or write-downs.

On IBC law

1. Such reversals can deter potential investors and resolution applicants who may fear that their investments could be undone due to procedural lapses, even years after implementation.
2. Importance of adhering to the 330-day timeline for insolvency resolution processes, including time spent in litigation. This strict interpretation could lead to more companies being pushed into liquidation if resolutions are not completed within the stipulated timeframe, potentially resulting in value erosion and job losses.
3. The unpredictability introduced by this ruling may lead to a decline in investor confidence, particularly among foreign investors. Several international funds have reportedly reconsidered or paused their investment plans in Indian distressed assets, citing concerns over legal certainty and the enforceability of resolution plans.
4. Raises a serious question on the IBC law and its rules, finality of the judgements.

Conclusion

The Supreme Court's decision to liquidate BPSL has significant ramifications for JSW Steel, the banking sector, and the broader insolvency framework in India. It underscores the need for strict adherence to legal provisions and timelines under the IBC while highlighting the potential risks of procedural lapses. The ruling may prompt a reevaluation of the IBC's implementation and could lead to legislative or regulatory reforms to restore investor confidence and ensure the efficacy of the insolvency resolution process.

Green Banks - A much needed push for suastinability

In the wake of increased Global-warming and environmental crises there is need of the hour and investments required in establishing financial institutions which will fund the environmental conservation, preservation and help in optimal utilization of resources.

So, fulfill this all around the world we can see increasing mobilization of resources.

What is Green Banks: The OECD (2016) defines a green investment bank as “a publicly capitalized entity established specifically to facilitate and attract private investment into domestic LCR [low-carbon and resilient] infrastructure and other green sectors such as water and waste management through different activities and interventions.”

Capitalisation sources of these banks: As of now these banks are funded by 70% from Government and 19% from Private capital.

Goals of Green Banks:

1.      Mobilize Private Capital

2.      Support Clean Energy

3.      Drive Down Costs

4.      Climate Impact

5.      Equity and Access

Focus areas of Green Banks

Green banks focus on accelerating the transition to a low-carbon economy by targeting sectors where clean technologies are commercially viable but underfunded due to market barriers. These includes,

1.      Renewable Energy

2.      Energy Efficiency

3.      Clean Transportation

4.      Green Buildings and Housing

5.      Climate Resilience and Adaptation

6.      Water and Waste Management

 

Which are the major Banks:

1.    United States: The New York Green Bank has mobilized over $1 billion in clean energy investments. The U.S. Environmental Protection Agency awarded $20 billion in green bank grants to support clean energy projects nationwide.

2.  Australia: The Clean Energy Finance Corporation (CEFC) has utilized over a third of a $1 billion Household Energy Upgrades Fund to provide green loans for energy-efficient home upgrades.

3.      United Kingdom: The UK Green Investment Bank, established in 2012, has played a significant role in financing renewable energy projects.

 

Green Banking in India

India is exploring the establishment of a dedicated national green bank to bridge the financing gap in the renewable energy sector. The NITI Aayog is examining possible structures for such an institution, considering models like the National Bank for Financing Infrastructure and Development.

All Green Banks have the mission to address climate change, though many also have additional objectives such as improving resiliency or serving low-income communities.

Green Banks make it easier to finance projects in new markets, geographies and technologies that otherwise couldn’t be built. This mean cheaper and cleaner energy for customers and more investment for private capital providers.

The world’s first green bank is widely recognized as the Connecticut Green Bank, established in 2011 in the United States.

There is a need for rapid expansion and establishment of new Green Banks across the world to finance the green initiatives, what you say?

For further reading:

What is a Green Bank - Coalition for Green Capital

Green Banks | US EPA

 

M&M acquires SML Isuzu

 Mergers & Acquisition in CV space: Mahindra to acquire 58.96% in SML Isuzu

Earlier in March 2025 there was a buzz that Ashok Leyland will acquire SML Isuzu but the company outrightly declined this report.

Now M&M announced acquisition of SML Isuzu at a price of Rs. 650 per share amounting to Rs. 555 crores.

The market price of the company stood at Rs. 1,773 per share on 25^th April 2025, seems like M&M got a deal at the good price.

The company holds a 16% market share in the Intermediate Light Commercial Vehicle (ILCV) bus segment. SML has a strong legacy, a loyal customer base and a great product portfolio which will help Mahindra to achieve its goal of increasing its market share in this segment to 6% by FY31 and over 20% by FY36.

Mahindra & Mahindra has a strong 52% market presence in the light commercial vehicles segment by this strategic acquisition not only increase market share in CV space but also improve its operating efficiency by consolidating platforms, unifying supplier and dealer networks, and optimising manufacturing capacity.

It will help M&M in to double its market share in the commercial vehicle segment and drive growth in its Trucks and Buses Division, positioning itself as a key player in the expanding Indian CV market.

Following this M&M will make a mandatory open offer to acquire up to 26% stake from public shareholders of SML in accordance with SEBI regulations.

This strategic acquisition will make M&M one of a dominate player.

 

What is Mandatory Open Offer Under SEBI SAST Regulations:

When a company undergoes a significant change in ownership, minority shareholders often face uncertainty (SEBI SAST Regulations) are designed to protect them by mandating an Open Offer in certain scenarios.

An open offer is triggered under the following conditions:

1. Acquisition of 25% or more voting rights (Regulation 3(1)).
2. Creeping acquisition beyond 5% in a financial year when holding is between 25%-75% (Regulation 3(2)).
3. Indirect acquisition of control of the company (Regulation 4).

 

 

Sustainability reporting

Sustainability reporting gaining a huge traction due to the global push and investors demand, to keep up with these requirements SEBI also making required changes and mandating the disclosure requirements, in this regard new amendments introduces is explained here,

Now Entities may opt for the third-party assessment or assurance and this assessment must follow standards by the Industry Standards Forum (ISF). And now CA firms can provide these services provided they have a requisite expertise and no conflict of interest.

Day by day the requirements for disclosure with respect to ESG and undertaking the activities to curb environmental pollution and diligent usage of the resources is becoming mandatory for the entities.1. 

Given an option to undertake ‘assessment’ or ‘assurance’ for BRSR Core and ESG disclosures for value chain.

Green credits:

In Principle 6 of BRSR, an additional 8^th leadership indicator included for disclosures on green credits.

How many Green Credits have been generated or procured:

a. By the listed entity

b. By the top ten value chain partners (by value of purchases/sales)

Applicable for BRSR disclosures for FY 2024-25 and onwards.

 

Assessment & Assurance

New KPIs included which are as follows;

a.      Job creation in small towns

b.      Open-ness of business

c.       Gross wages paid to women

And for better global comparability intensity ratios based on revenue adjusted for Purchasing Power Parity (PPP) have been included.

Listed entities shall mandatorily undertake assessment or assurance of the BRSR Core as per the following timelines:

Financial Year   Applicability of BRSR Core to top listed entities (by market capitalization)

2023 – 24 Top 150 listed entities

2024 – 25 Top 250 listed entities

2025 – 26 Top 500 listed entities

2026 – 27 Top 1000 listed entities

 

Note the following for assessment provider:

The listed entity shall ensure that there is no conflict of interest with the assessment or assurance provider appointed for assessing or assuring the BRSR Core. For instance, it shall be ensured that the assessment or assurance provider or any of its associates do not sell its products or provide any non-audit / non-assessment / non assurance related service including consulting services, to the listed entity or its group entities.”

Value chain disclosure and assessment or assurance is deferred by one year and to revise the threshold for values chain partners.

Value chain shall include individually comprising 2% or more of the listed entity's purchases and sales (by value) respectively. However, the listed entity may limit disclosure of value chain to cover 75% of its purchases and sales (by value) respectively.”

ESG disclosures for the value chain shall be applicable to the top 250 listed entities on a voluntary basis from FY 2025 26.

The assessment or assurance of the above shall be applicable on a voluntary basis from FY 2026-27

For the first year of reporting ESG disclosures for value chain, reporting of previous year numbers shall be voluntary.

How these requirements of disclosures and assessment will shape up the company's image in the public eyes is interesting in coming years.  

 

Vantara - Aim towards sustainable living

Vantara: A Vision for Sustainability and Wildlife Conservation

In a world where nature and wildlife face constant threats, Vantara stands as a beacon of hope and a testament to human commitment toward ecological harmony. Spearheaded by Anant Ambani, a director at Reliance Industries and Reliance Foundation, Vantara is not just a wildlife rescue operation—it’s a revolution in sustainability and conservation.

A Sanctuary Like No Other

Vantara is the world’s largest and most advanced wildlife rescue center, providing a safe haven for over 25,000 rescued animals spanning more than 48 species. It is home to the world's largest Animal Wildlife Quarantine Centre, India’s only facility of its kind, ensuring rescued animals receive the best possible care before reintegration into suitable habitats.

Pioneering Wildlife Healthcare

Vantara is home to Asia’s first wildlife hospital equipped with cutting-edge medical technology, including CT scans and MRI facilities tailored specifically for animals. It also houses the world’s largest Leopard Rescue Centre, caring for over 300 leopards, and an Elephant Care Centre that provides specialized treatment for more than 250 elephants.

The centre also boasts Asia’s largest veterinary pharmacy and operates a fleet of over 75 animal ambulances, ensuring rapid emergency response and medical aid for wildlife in distress. With 22 hospitals, 17 clinics, and 103 dedicated veterinarians, Vantara has revolutionized veterinary care for rescued animals.

Holistic Healing Beyond Medicine

At Vantara, treatment goes beyond physical healing—it focuses on mental well-being too. Innovative therapies like music therapy, hydrotherapy, and even Jacuzzi pools aid in the rehabilitation of rescued animals. Ayurveda is also integrated into treatment plans, blending traditional wisdom with modern medicine to ensure holistic recovery.

A Global Force for Wildlife Rescue

Vantara’s impact extends beyond India, with over 250 international rescue operations successfully conducted. The centre has saved 50-60 endangered species from captivity, circuses, and starvation, offering them a second chance at life. It is also actively involved in breeding programs for seven critically endangered species, playing a crucial role in their survival.

The Ambitious Genome Project

One of Vantara’s most groundbreaking initiatives is its Genome Project, an ambitious effort to safeguard biodiversity at the genetic level. This pioneering program positions India at the forefront of global biodiversity conservation, ensuring the preservation of species for generations to come.

Sustainability and Community Development

Vantara is not just about wildlife—it also nurtures the environment and uplifts local communities. Its sprawling campus is home to over 25 million trees, creating a thriving ecosystem for both animals and nature. The facility sources food for the animals from local farmers, promoting organic farming and sustainable agriculture. In return, organic manure from Vantara supports local farmers in growing crops, creating a self-sustaining cycle.

Additionally, Vantara has provided employment to over 3,500 people, including 3,000 to 4,000 animal caretakers, empowering local veterinary professionals and fostering economic growth.

A Call to Action

Vantara is more than just a conservation center—it’s a movement that reminds us that Earth belongs not only to humans but to all living beings. By saving wildlife, protecting the environment, and fostering ecological balance, Vantara sets an example for the world.

Save the environment. Protect wildlife. Preserve our ecology. 

New REIT listing

Blackstone is coming up with the Indias first retail mall REIT IPO,

This is the third REIT listing, and it will be called as Nexus Select Trust,

It include assets of premium mall Select City Walk from Delhi and Bangalore's developer Prestige Group.

Where Nexus mall is the largest mall operator in India has acquired 17 malls in 13 cities.

Retail sales in Indian malls are set to grow at a CAGR of 29% in FY22-28 to touch $39 billion by FY28 and footfalls is increasing and people are increasing their purchases from malls.

Already listed Embassy REIT is planning to invest 2200 cr to develop new office buildings in next 3-4 years.

Recently Blackstone sold 7.7 cr shares of Embassy REIT amounting to Rs 2650.

Blackstone is the most agressive institutional investor which is the largest office space owner in India with an office portfolio of around 100 million sq ft across 38 assets in 7 cities. Of this, around 13 million sq ft offices are under construction and 16 million sq ft for future development. 

It's AUM is estimated to be odd 60 billion of which Real estate is major one.

India's real estate sector is witnessing a growth post COVID.

and Blackstone being in the main lead in this sector acting quick.

RIL's new Acquisition in Renewable energy space

 

New day new Acquisition…

RIL to acquire a 79.4% stake in SenseHawk, a company that digitizes and helps solar equipment and sites.

Acquiring at $32 million including research, Development of products, and future growth.

SenseHawk helps in process automation, defect identification, yield improvements, cost reduction, and data management throughout the solar lifecycle.

Acquiring this will help to bring down the cost which is required to manage solar assets and sites with more efficiently and at a minimal cost.

Surely this shows that Mukesh Ambani is building an eco-system that will integrate the entire renewable energy front.

Now RIL’s almost 60% revenue comes from Petroleum and petrochemicals, in future which will be replaced by Renewable energy in a big way as now RIL imports crude oil but renewable energy will be an in-house generation with its solar plants so it will be a future cash-cow for RIL.

This company already assisted over 140 customers in different countries and 600 solar plants.

If we look into the recent RIL acquisition in renewable energy space shows why this will be a front-face of RIL in coming years.

•  Acquired NexWafe GmbH for 25 million euros.
•  Acquired Norway’s REC solar holdings for $771 million.  
•  RIL acquired a 40% stake in Sterling and Wilson solar.
•  In April RIL agreed to purchase 8 high-efficiency production lines for heterojunction cells (HJT), with each 600 MW capacity, to produce 4.8 GW of HJT cells annually.

RIL is on its way to create a Renewable Energy giant with its new plans to build 4 new giga factories  next to its refinery in Gujarat.