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Hans India
27-05-2025
- Business
- Hans India
SC orders status quo on Bhushan liquidation
New Delhi: The Supreme Court on Monday ordered a status quo on the liquidation proceedings of Bhushan Power and Steel Ltd (BPSL), giving interim relief to JSW Steel. The verdict came on a plea filed by JSW Steel seeking a stay on the liquidation process initiated by BPSL's former promoter, Sanjay Singhal. JSW Steel has been allowed to file a review petition against the Supreme Court's May 2 verdict that quashed its Rs 19,300 crore resolution plan, which had come as a major setback for the Sajjan Jindal-led company. A Supreme Court bench directed the National Company Law Tribunal (NCLT) to put the matter on hold until the apex court passes a verdict on the review plea. Asking JSW Steel to file the petition within the 30-day prescribed limitation period, the apex court noted that the 'status quo needs to be maintained in the interest of justice', meaning no further action on liquidation will proceed until the review petition is resolved. Sanjay Singhal, former promoter of the BPSL, had approached the NCLT seeking liquidation based on the Supreme Court's earlier judgment. The Supreme Court's May 2 judgment came as a huge setback for JSW Steel, which acquired the BPSL through the corporate insolvency resolution process more than five years ago and has made significant investments in the company. The apex court had set aside the resolution plan on grounds of non-compliance with key provisions of the Insolvency and Bankruptcy Code (IBC), which included the failure to adhere strictly to the plan's approved timeline. BPSL's steel plant in Odisha has a capacity of 4.5 million tonnes per annum (MTPA), forming a key part of JSW Steel's total domestic capacity of 34.2 MTPA.
Hans India
26-05-2025
- Business
- Hans India
Supreme Court puts Bhushan Steel liquidation on hold, allows JSW to file review plea
The Supreme Court on Monday ordered a status quo on the liquidation proceedings of Bhushan Power and Steel Ltd (BPSL), giving interim relief to JSW Steel. The verdict came on a plea filed by JSW Steel seeking a stay on the liquidation process initiated by BPSL's former promoter, Sanjay Singhal. JSW Steel has been allowed to file a review petition against the Supreme Court's May 2 verdict that quashed its Rs 19,300 crore resolution plan, which had come as a major setback for the Sajjan Jindal-led company. A Supreme Court bench directed the National Company Law Tribunal (NCLT) to put the matter on hold until the apex court passes a verdict on the review plea. Asking JSW Steel to file the petition within the 30-day prescribed limitation period, the apex court noted that the "status quo needs to be maintained in the interest of justice", meaning no further action on liquidation will proceed until the review petition is resolved. Sanjay Singhal, former promoter of the BPSL, had approached the NCLT seeking liquidation based on the Supreme Court's earlier judgment. The Supreme Court's May 2 judgment came as a huge setback for JSW Steel, which acquired the BPSL through the corporate insolvency resolution process more than five years ago and has made significant investments in the company. The apex court had set aside the resolution plan on grounds of non-compliance with key provisions of the Insolvency and Bankruptcy Code (IBC), which included the failure to adhere strictly to the plan's approved timeline. BPSL's steel plant in Odisha has a capacity of 4.5 million tonnes per annum (MTPA), forming a key part of JSW Steel's total domestic capacity of 34.2 MTPA. JSW Steel's Joint Managing Director, Jayant Acharya, said last week that the company had "implemented the resolution plan of the BPSL in compliance with the law and taken steps to successfully revive the company to its present state today". He said that JSW Steel expected its compensation rights to be upheld in the case.
Time of India
23-05-2025
- Business
- Time of India
JSW moves SC to halt BPSL liquidation
New Delhi: JSW Steel Friday asked the Supreme Court to keep the liquidation of Bhushan Power and Steel Ltd (BPSL) in 'abeyance' as this will be 'fatal' to the company and other stakeholders, including lenders and workers. Sajjan Jindal-led JSW said it was deciding on its legal recourse of review under Article 137. The company asked that any move by the National Company Law Tribunal (NCLT) to start liquidation proceedings be paused until it had exhausted all legal remedies. ET reported in its Friday edition that JSW Steel was seeking a 60-day pause on BPSL's liquidation. The SC move comes after BPSL's former promoter Sanjay Singhal asked the NCLT to start liquidation proceedings and appoint a liquidator. But if the NCLT initiates the process, it will lead to 'complicated litigation to reverse the damage', JSW told the Supreme Court Friday. The erstwhile promoters of BPSL have acted in unnecessary haste and without having any locus standi, JSW said. The apex court had on May 2 rejected JSW's 2019 resolution plan for BPSL citing non-compliance with rules and ordered the unit's liquidation. It also ordered that money be refunded to JSW. The company said the amount to be refunded was 'yet to be worked out.' JSW told the Supreme Court that BPSL's assets are significantly different from what they were before the resolution plan took effect due to value accretion. 'Any order for initiation of liquidation of BPSL must be passed in respect of BPSL as it stood prior to the date of implementation of the resolution plan,' JSW said in its plea to the Supreme Court. 'Consequently, the actions undertaken by JSW upon and after the implementation of the resolution plan need to be reversed and the position of BPSL and its stakeholders ought to be restored to the position they were in immediately prior to the date of implementation of the resolution plan for any liquidation proceedings to commence.' The court is likely to hear the appeal on Monday as JSW's counsel sought an urgent listing, saying the NCLT is moving 'ahead fast with the liquidation process'. To be sure, the NCLT is also scheduled to hear the Singhal plea on Monday. The May 2 ruling scrapped JSW Steel's acquisition of BPSL four years after it took place on the grounds that the resolution plan was 'illegal' and 'in gross violation' of the Insolvency and Bankruptcy Code (IBC). While directing the NCLT to initiate liquidation proceedings against BPSL, the court had directed that payments made to financial and operational creditors and the equity contribution by JSW be refunded within two months, as undertaken by the lenders to the bankrupt firm. JSW told the apex court in its fresh appeal the initiation of liquidation will cause irreparable damage to it and stakeholders at large--public sector banks being the new lenders, new operational creditors and around 20,000 employees. Therefore, the continuation of NCLT proceedings without addressing and appreciating the legal remedies available to JSW and various other stakeholders would 'frustrate the rights' of JSW, the appeal stated. However, this could be an attempt at reopening the case, experts told ET. JSW's appeal assumes importance as the Committee of Creditors had also asked the tribunal to grant more time to assess the impact of the Supreme Court judgment and assist it on the way forward. Economic Times WhatsApp channel )
Time of India
16-05-2025
- Business
- Time of India
JSW Paints Leads the Race for Akzo Nobel Prize
HighlightsJSW Paints has signed an exclusivity agreement to acquire Akzo Nobel India, surpassing the competing bid from a consortium of Advent International and Indigo Paints. If the acquisition is successful, JSW Paints will rise to the fourth position in the Indian decorative paints market and enhance its presence in the industrial paints sector. The acquisition deal, valued at approximately ₹11,854.63 crore ($1.39 billion), will trigger an open offer and is expected to help JSW Paints approach the ₹10,000 crore revenue mark, making it a candidate for a possible Initial Public Offering. JSW Paints has emerged as the frontrunner to acquire Akzo Nobel India , trumping the only competing bid from a consortium of Advent International and Indigo Paints, said people aware of the development. Ending weeks of intense negotiations, the two have signed an exclusivity agreement for negotiations to finalise terms and documentation for a share purchase agreement before making a formal announcement. If successful, this will catapult JSW to fourth position in India from lower down in the pecking order, inching closer to third-placed Kansai Nerolac in the decorative segment and putting it in No 2 slot in industrial paints space. It also will help JSW Paints inch closer to the `10,000 crore revenue mark, putting it in line for a possible IPO . Decorative paints account for 75 per cent of the total demand in the country, led by repainting and new construction. Asian Paints leads the segment, followed by Berger and Kansai Nerolac. Both bidders for Akzo Nobel India had submitted binding offers late last month, ET was first to report April 24. Deal may Trigger Open Offer | page 12 Hectic deliberations have been underway in the past few weeks, starting at a significant discount to the current market value , keeping in mind the fast-changing competitive landscape of the Indian paints business. The bid-ask gap is said to have shrunk significantly over this period. Akzo Nobel India's current market value is at ₹15,857.14 crore, the stock having closed Thursday at ₹3,482, down 25 per cent from its 52-week high of ₹4,649 on October 9. To be sure, it surged about 36 per cent in the past 12 months in anticipation of a sale. Parent AkzoNobel NV holds a 74.76 per cent stake as promoter and JSW's offer will trigger an open offer. JSW's offer is said to be at a 5-8 per cent discount to the market price, valuing the promoter stake at ₹11,854.63 crore ($1.39 billion). Privately held JSW Paints is expected to reverse merge with the listed Akzo Nobel India, according to the people cited. It's not yet clear if AkzoNobel will retain a small stake in the combined business. Citi and Morgan Stanley are advisors to the transaction. Sri Lanka operations For the moment, JSW is looking to buy the India operations with an understanding that it will eventually take over operations in Sri Lanka, where Akzo already has a local joint venture partner. Sajjan Jindal-led JSW has been in discussions with several global banks and financial institutions including Standard Chartered Bank, MUFG and Barclays for acquisition funding, said the people cited. It's also said to be in talks with Ares Capital, KKR, Goldman Sachs and Apollo Global Management for ₹4,000-4,500 crore of structured financing. Apollo is already an investor in the group's cement business. The financing consortium is yet to be finalised. The promoters, the Sajjan Jindal family, are expected to infuse ₹2,500-₹3,000 crore as equity. The deal size will depend on the success of the open offer. JSW was not available for comment. AkzoNobel NV declined to comment on market speculation. Emails sent to Ares Capital and Goldman Sachs didn't elicit a response till press time. KKR declined to comment. AkzoNobel had announced plans to review its business operations in the Indian subcontinent in October 2024. In February, Akzo Nobel India hived off and agreed to sell its powder coatings business — its most profitable stream that contributes 12-14 per cent of sales — to its Dutch parents. That took the shine off the deal for several potential suitors, industry executives said. JSW Paints hasn't been able to break into the decorative top three since it was set up six years ago. On the other hand, newcomer Birla Opus, from Grasim Industries, has managed to gain a 3-4 per cent market share in Q3 alone, said industry executives. Given that Akzo Nobel India's Dulux Paints is present in the luxury and uber-luxury category and in urban markets, a deal will give JSW Paints significant heft in the market.
Time of India
15-05-2025
- Business
- Time of India
JSW Paints set to add lustre with Akzo India buy
Mumbai: JSW Paints has emerged as the frontrunner to acquire Akzo Nobel India , trumping the only competing bid from a consortium of Advent International and Indigo Paints , said people aware of the development. Ending weeks of intense negotiations, the two have signed an exclusivity agreement for bilateral negotiations to finalise terms and documentation for a share purchase agreement before making a formal announcement. If successful, this will catapult JSW to fourth position in India from lower down in the pecking order, inching closer to third-placed Kansai Nerolac in the decorative segment and putting it in No. 2 in industrial paints . It also will help JSW Paints inch closer to the Rs 10,000 crore revenue mark, putting it in line for a possible IPO. Decorative paints account for 75% of the total demand in the country, led by repainting and new construction. Asian Paints leads the segment, followed by Berger and Kansai Nerolac. (Yes) although margins are shrinking owing to increased competition from new entrants such as Birla Opus. Both bidders for Akzo Nobel India had submitted binding offers late last month, ET was first to report April 24. Hectic deliberations have been underway in the past few weeks, starting at a significant discount to the current market value , keeping in mind the fast-changing competitive landscape of the Indian paints business. The bid-ask gap is said to have shrunk significantly over this period. Akzo Nobel India's current market value is at Rs 15,857.14 crore, the stock having closed Thursday at Rs 3,482, down 25% from its 52-week high of Rs 4,649 on October 9. To be sure, it surged about 36% in the past 12 months in anticipation of a sale, making it the most expensive paint stock in the world. Parent AkzoNobel NV holds a 74.76% stake as promoter and JSW's offer will trigger an open offer. JSW's offer is said to be at a 5-8% discount to the market price, valuing the promoter stake at Rs 11,854.63 crore ($1.39 billion). Privately held JSW Paints is expected to reverse merge with the listed Akzo Nobel India, according to the people cited. It's not yet clear if AkzoNobel will retain a small stake in the combined business. Citi and Morgan Stanley are advisors to the transaction. For the moment, JSW is looking to buy the India operations with an understanding that it will eventually take over operations in Sri Lanka, where Akzo already has a local joint venture partner. Sajjan Jindal-led JSW has been in discussions with several global banks and financial institutions including Standard Chartered Bank, MUFG and Barclays for acquisition funding, said the people cited. It's also said to be in talks with Ares Capital, KKR, Goldman Sachs and Apollo Global Management for Rs 4,000-4,500 crore of structured financing. Apollo is already an investor in the group's cement business. The financing consortium is yet to be finalised. The promoters, the Sajjan Jindal family, are expected to infuse Rs 2,500-3,000 crore as equity. The deal size will depend on the success of the open offer. JSW was not available for comment. AkzoNobel NV declined to comment on market speculation. Ares, Goldman Sachs XXXX. KKR declined to comment. AkzoNobel had announced plans to review its business operations in the Indian subcontinent in October 2024. In February, Akzo Nobel India hived off and agreed to sell its powder coatings business—its most profitable stream that contributes 12-14% of sales--to its Dutch parents. That took the shine off the deal for several potential suitors, industry executives said. JSW Paints hasn't been able to break into the decorative top three since it was set up six years ago. On the other hand, newcomer Birla Opus, from Grasim Industries , has managed to gain a 3-4% market share in the third quarter alone, said industry executives. Given that Akzo Nobel India's Dulux Paints is present in the luxury and uber-luxury category and in urban markets, a deal will give JSW Paints significant heft in the market. JSW Paints managing director Parth Jindal had described the Akzo Nobel India stake sale as an 'exciting opportunity' in January. 'There is no choice... I have to give everything I've got for Akzo Nobel India,' he had said at the time. Grasim, part of the Aditya Birla Group, marked one year of its paints operations in February. It's completed the construction of four plants and is looking to set up two more. It has invested Rs 9,000 crore so far in advertising and marketing besides capacity expansion and dealer incentives. An additional Rs 1,000 crore is earmarked for new plants and its eyeing a network of 50,000 dealers by the end of March. Paint company operating profitability margins, which shrank to 16% in H1FY25 from 20% in the year before, are expected to further contract to 14% by FY26, according to Care Ratings, after a sustained CAGR of 14-15% between FY19 and FY23. Earlier this week, ET had reported Reliance Industries Ltd's plan to divest its 5% holding in Asian Paints for over $1 billion. Akzo Nobel India, like most in the industry, has been bracing for sectoral headwinds. The company has about 7% market share in India and is one of the most profitable in the segment with an annual production capacity of 250 million litres, focused on high-end decorative paints. It has experienced low single-digit growth in value while profits in Q3FY25 were down by 5%, partly due to a special dividend issued in the previous year. But the automotive and vehicle refinish segments as well as the coil coating part of industrial paints faced challenges, impacting overall business performance.
