JSW Steel's Market Shock: Supreme Court Rejects Resolution Plan

JSW Steel's shares fell over 5% following a Supreme Court ruling against its resolution plan for Bhushan Steel and Power Ltd. This decision, deemed illegal under the Insolvency and Bankruptcy Code, led to a significant market valuation loss for JSW Steel.

In a dramatic turn of events, shares of JSW Steel fell more than 5% on Friday after the Supreme Court overturned its resolution plan for Bhushan Steel and Power Ltd (BSPL) as it violated the Insolvency and Bankruptcy Code (IBC).

The stock dropped 5.46% to close at Rs 972.15 on the BSE. During intraday trading, the price further sank by 7.77% to hit Rs 948.35.

The court's ruling, supported by a bench of Justice Bela M Trivedi and Justice Satish Chandra Sharma, also ordered BSPL's liquidation, criticism aimed at all major stakeholders involved in the resolution process, for what it highlighted as a 'flagrant violation' of the IBC.

(With inputs from agencies.)