Latest news with #SajjanJindal-led
Time of India
a day ago
- Business
- Time of India
Bhushan Power liquidation will hurt all stakeholders, JSW Steel and lenders tell SC
New Delhi: JSW Steel has transformed Bhushan Power & Steel Ltd (BPSL) into a viable and going concern after acquiring it out of bankruptcy in 2021, and its liquidation would have adverse ramifications on all stakeholders, the Sajjan Jindal-led steelmaker and BPSL's lenders told the Supreme Court . They also sought an "open court" hearing of their petitions seeking a review of the top court's May 2 order scrapping JSW's acquisition of BPSL under the bankruptcy law. While JSW filed the review petition on Wednesday, the lenders that include Punjab National Bank and State Bank of India approached the top court with their plea last week. JSW said it transformed the bankrupt firm's financial health and that its operational capacity has almost doubled to 4.5 million tonnes per annum now from 2.3 MTPA in 2017. BPSL's sales have since increased almost three times to ₹25,973 crore in the last fiscal year ended March 31 and exports have resumed with an annual average of ₹2,976 crore in the last four years, the company said in the review petition. BPSL contributed ₹16,900 crore in taxes to the exchequer since 2021, the petition stated. Also, JSW Steel , which acquired BPSL under a ₹19,350-crore resolution plan, has made a capital investment of ₹5,788 crore in it. In its order on May 2, the top court had termed JSW's resolution plan for BPSL 'illegal' and 'in gross violation' of the Insolvency and Bankruptcy Code (IBC). The court had also directed the National Company Law Tribunal (NCLT) to initiate liquidation proceedings against BPSL. The SC later ordered status quo on the liquidation proceedings, after JSW Steel and the lenders said they would file review petitions. About the allegation in the May verdict that JSW suppressed existence of a joint venture agreement with BSPL on the Rohne Coal block, the company's review petition said it had made due disclosures about it in the resolution plan and even the National Company Law Appellate Tribunal (NCLAT) had noted them. 'When the ED (Enforcement Directorate) first raised the issue before NCLAT to clarify the relationship further, the petitioner (JSW) voluntarily submitted the JV agreement before NCLAT, despite there being no requirement to do so under law, to explain the background of formation of the JV,' the review petition filed through Karanjawala & Company said. Supporting JSW's claims, the lenders said the resolution plan was successfully implemented by March 2021 and that the company had made an upfront payment of ₹19,350 crore. The banks in their review plea said the May 2 judgement suffered from 'patent errors' on the face of the record. '…the impugned judgment's observations with respect to the JSW's eligibility under Section 29A being doubtful, not being properly verified by inter alia the CoC (committee of creditors) or not being supported by documents on record constitute an error apparent on the face of the record,' the lenders said, adding that the issue was not argued before the SC and hence, the observations in relation that were in violation of the principles of natural justice. Section 29A of the IBC details conditions under which some individuals and entities are disqualified from submitting a resolution plan. With regard to the SC finding that equity infusion of ₹8,550 crore as mandated by the resolution plan was not complied with and there was no material on record to substantiate that, the banks submitted that this 'conclusion has been reached without adequately considering that there is in fact documentary evidence, particularly minutes of meeting of the reconstituted board on March 26, 2021, to substantiate infusion of ₹8,550 crore equity.' The May judgement failed to consider the factors that contributed to the delay in equity infusion, according to the banks' review plea filed through law firm Cyril Amarchand Mangaldas. The petition also noted that the ED order for provisionally attaching BPSL assets had been issued on October 10, 2019, about 35 days after the NCLT approved the dent resolution plan on September 5 that year. 'The attachment by the ED was effectively released approximately five years later' on December 11, last year, the banks said in the petition. The lenders told the SC that the May 2 judgement will likely have significant ramifications on future resolution plans because it might create uncertainty with respect to their implementation. Also, implementation of plans may effectively come to a standstill pending final adjudication of all legal challenges to the plan, which can take several years, they said. BSPL owed more than ₹47,000 crore to lenders when the Reserve Bank of India put it on a list of companies for bankruptcy resolution in 2017. The NCLT began the resolution process in July that year, based on a petition filed by lead lender Punjab National Bank , which also initiated criminal proceedings in 2019 against former directors of the company after unearthing a ₹3,800 crore alleged fraud. JSW Steel acquired BPSL in March 2021 after its proposal was approved by the CoC and the NCLAT. The NCLT had approved JSW Steel's offer in 2019, while holding that the successful bidder could not be held responsible for any alleged misdeeds of the previous promoters at any stage. The NCLAT upheld that decision in February 2020.
Time of India
2 days ago
- Business
- Time of India
JSW Paints' Rs 12,915-cr proposed acquisition of Akzo Nobel India among topdeals this year
Sajjan Jindal-led JSW Paints ' Rs 12,915-crore deal to acquire Dutch paint maker Akzo Nobel's India unit is among the biggest transactions in the country so far this year. JSW Paints on Friday announced that it will buy a 74.76 per cent stake in Dulux paint-maker Akzo Nobel India for Rs 8,986 crore, followed by an open offer to buy another 25 per cent from open market for up to Rs 3,929.06 crore, totalling tad over Rs 12,915 crore. It is slightly behind Japan's Sumitomo Mitsui Banking Corp's acquisition of a 20 per cent stake in Yes Bank for Rs 13,483 crore announced last month. State Bank of India (SBI) along with seven other lenders, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank, agreed to sell their combined stakes aggregating 20 per cent in Yes Bank to Sumitomo Mitsui. The Sumitomo-Yes Bank deal was the largest cross-border investment in the Indian banking sector. Live Events Yet, the biggest so far this year is Bajaj group's deal to acquire long-time partner Allianz' 26 per cent stake in Bajaj Allianz life and general insurance for a total of Rs 24,180 crore announced in March. Under their share purchase agreements, Bajaj Finserv agreed to acquire a 26 per cent stake owned by Allianz SE of Germany in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company for Rs 13,780 crore and Rs 10,400 crore, respectively. The second biggest transaction this year is ONGC-NTPC Green's deal to acquire Ayana Renewable Power for an enterprise value of Rs 19,500 crore (USD 2.3 billion) announced in February. ONGC-NTPC Green Pvt Ltd (ONGPL), a 50:50 joint venture between ONGC Green Ltd and NTPC Green Energy Ltd, signed a share purchase agreement to acquire a 100 per cent stake in Ayana Renewable Power. Singapore-headquartered global investment firm Temasek's 10 per cent stake acquisition in Haldiram's for reported USD 1 billion is also among the top deals of 2025 so far. JSW Paints' acquisition of Akzo Nobel India will help JSW group expand its play in the paint segment, which it entered in 2019. It will make the company the fourth largest paints maker after Asian Paint, Berger and Kansai Nerolac. In last 5-6 years, several new players have entered the market, including Pidilite with Haisha Paints, Grasim with its Birla Opus. Besides, pipes and fittings manufacturer Astral acquired Gem Paints, and JK Cements entered the paints sector by acquiring Acro Paints.
Time of India
2 days ago
- Business
- Time of India
Govt signs agreements for Rs 18k-cr investments in maritime trade infra
Bhubaneswar: Odisha govt on Thursday signed two major concession agreements, promising a combined investment of over Rs 18,000 crore in maritime trade infrastructure which is expected to create 8,450 jobs. Gopalpur Ports Limited committed to a Rs 16,554 crore investment to expand and develop the Adani Group-controlled Gopalpur Port. This will increase the port's cargo handling capacity to 50 million metric tonnes (MMT) — from the current 20MMT — and generate approximately 5,000 jobs, further solidifying Odisha's position as a key player in maritime trade, a govt statement said. JSW Utkal Steel Limited, a subsidiary of Sajjan Jindal-led JSW Group, is likely to invest Rs 2,100 crore for the construction of a 52 million tonne cargo handling jetty at Jatadhara river mouth near Paradip in Jagatsinghpur district. This project is expected to generate 3,450 direct and indirect jobs, significantly enhancing the region's economic landscape, the statement added. Chief minister Mohan Charan Majhi, who was present at the signing ceremony, emphasised the state's focus on development of maritime trade, highlighting plans for new ports at Inchudi and Bahuda, alongside development initiatives for Subarnarekha and Astaranga ports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo The agreements were signed in the presence of key industry leaders, including Anil Kumar Singh, president of JSW Utkal Steel Limited, and Sandeep Jaiswal, business head of Gopalpur Ports Limited. The CM expressed confidence that these projects, led by globally renowned companies, will usher in a new era of port-led development in Odisha. Commerce and transport minister Bibhuti Bhushan Jena reiterated the importance of developing ports and jetty in the state's overall growth strategy, aiming to leverage Odisha's extensive coastline for further infrastructural development. The government's vision for 2036 and 2047 includes ensuring adequate port capacity to support coastal shipping operations. Plans are underway to increase Paradip Port's capacity from its current 289 MMTPA to 300 MMTPA, while also expanding non-major port capacity in the state to 200 MMTPA by 2036. To enhance coastal connectivity, the govt intends to develop eight new non-major ports in addition to the existing Dhamra and Gopalpur ports. Furthermore, there are strategic plans to transform Gopalpur and Paradip into green energy hubs, with a focus on developing green hydrogen, ammonia, and integrated port-based industrial ecosystems.
Economic Times
2 days ago
- Business
- Economic Times
JSW Steel seeks 'open hearing' in BPSL liquidation review plea
New Delhi: JSW Steel has transformed Bhushan Power & Steel Ltd (BPSL) into a viable and going concern after acquiring it out of bankruptcy in 2021, and its liquidation would have adverse ramifications on all stakeholders, the Sajjan Jindal-led steelmaker and BPSL's lenders told the Supreme Court. They also sought an 'open court' hearing of their petitions seeking a review of the top court's May 2 order scrapping JSW's acquisition of BPSL under the bankruptcy law. While JSW filed the review petition on Wednesday, the lenders that include Punjab National Bank and State Bank of India approached the top court with their plea last week. JSW said it transformed the bankrupt firm's financial health and that its operational capacity has almost doubled to 4.5 million tonnes per annum now from 2.3 MTPA in 2017. BPSL's sales have since increased almost three times to ₹25,973 crore in the last fiscal year ended March 31 and exports have resumed with an annual average of ₹2,976 crore in the last four years, the company said in the review contributed ₹16,900 crore in taxes to the exchequer since 2021, the petition stated. Also, JSW Steel, which acquired BPSL under a ₹19,350-crore resolution plan, has made a capital investment of ₹5,788 crore in it. In its order on May 2, the top court had termed JSW's resolution plan for BPSL "illegal" and "in gross violation" of the Insolvency and Bankruptcy Code (IBC). The court had also directed the National Company Law Tribunal (NCLT) to initiate liquidation proceedings against BPSL. The SC later ordered status quo on the liquidation proceedings, after JSW Steel and the lenders said they would file review petitions. About the allegation in the May verdict that JSW suppressed existence of a joint venture agreement with BSPL on the Rohne Coal block, the company's review petition said it had made due disclosures about it in the resolution plan and even the NCLAT had noted them. Supporting JSW's claims, the lenders said the resolution plan was successfully implemented by March 2021 and that the company had made an upfront payment of ₹19,350 banks in their review plea said the May 2 judgement suffered from "patent errors" on the face of the record. "...the impugned judgment's observations with respect to the JSW's eligibility under Section 29A being doubtful, not being properly verified by inter alia the CoC (committee of creditors) or not being supported by documents on record constitute an error apparent on the face of the record," the lenders said.
Time of India
2 days ago
- Business
- Time of India
JSW Steel seeks 'open hearing' in BPSL liquidation review plea
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: JSW Steel has transformed Bhushan Power & Steel Ltd (BPSL) into a viable and going concern after acquiring it out of bankruptcy in 2021, and its liquidation would have adverse ramifications on all stakeholders, the Sajjan Jindal-led steelmaker and BPSL's lenders told the Supreme Court They also sought an 'open court' hearing of their petitions seeking a review of the top court's May 2 order scrapping JSW's acquisition of BPSL under the bankruptcy law. While JSW filed the review petition on Wednesday, the lenders that include Punjab National Bank and State Bank of India approached the top court with their plea last said it transformed the bankrupt firm's financial health and that its operational capacity has almost doubled to 4.5 million tonnes per annum now from 2.3 MTPA in 2017. BPSL's sales have since increased almost three times to ₹25,973 crore in the last fiscal year ended March 31 and exports have resumed with an annual average of ₹2,976 crore in the last four years, the company said in the review contributed ₹16,900 crore in taxes to the exchequer since 2021, the petition stated. Also, JSW Steel , which acquired BPSL under a ₹19,350-crore resolution plan, has made a capital investment of ₹5,788 crore in its order on May 2, the top court had termed JSW's resolution plan for BPSL "illegal" and "in gross violation" of the Insolvency and Bankruptcy Code (IBC). The court had also directed the National Company Law Tribunal (NCLT) to initiate liquidation proceedings against BPSL. The SC later ordered status quo on the liquidation proceedings, after JSW Steel and the lenders said they would file review the allegation in the May verdict that JSW suppressed existence of a joint venture agreement with BSPL on the Rohne Coal block, the company's review petition said it had made due disclosures about it in the resolution plan and even the NCLAT had noted them. Supporting JSW's claims, the lenders said the resolution plan was successfully implemented by March 2021 and that the company had made an upfront payment of ₹19,350 banks in their review plea said the May 2 judgement suffered from "patent errors" on the face of the record. "...the impugned judgment's observations with respect to the JSW's eligibility under Section 29A being doubtful, not being properly verified by inter alia the CoC (committee of creditors) or not being supported by documents on record constitute an error apparent on the face of the record," the lenders said.
