JSW Steel shares decline after entering into 50:50 JV partnership with Japan’s JEF Steel Corp

Shares of JSW Steel slumped as much as 4.91% to an intra-day low of ₹1,104.90 apiece on the National Stock Exchange (NSE).

Under the partnership, the steel business undertaking of JSW Steel’s subsidiary, Bhushan Power and Steel Ltd (BPSL), will be transferred to a 50:50 joint venture (JV) with JEF, by way of a slump sale for a cash consideration of ₹24,483 crore, it added.

BPSL owns an iron ore mine and an integrated steelworks in eastern India with crude steel production capacity of 4.5 million tons per year, JEF said in a separate regulatory filing.

The regulatory filing stated that JEF will invest a total of ₹15,750 crore in two tranches for a 50% stake in the JV.

JSW Steel acquired BPSL in 2021 through the Insolvency and Bankruptcy Code (IBC) process.

Commenting on the development, Jayant Acharya, Joint Managing Director and CEO of JSW Steel, said: “Today’s announcement brings together JSW’s expertise in India with JFE’s technological strengths and will enable the joint venture to realise its growth potential and produce a variety of value‐added steels. India is the fastest-growing major economy as well as steel market in the world, and this transaction enables JSW to accelerate its growth in a financially prudent manner and create further value for its stakeholders.”

JFE said that the JV aims to expand crude steel production at the integrated steelworks to 10 million tonnes by 2030.

“Since we signed the strategic comprehensive alliance agreement with JSW in 2009, we have engaged in various collaborations and partnerships, including capital participation; licensing of manufacturing technology for automotive steel and non‐oriented electrical steel sheets; and a joint venture for the manufacturing of grain‐oriented electrical steel sheet,” said Masayuki Hirose, President and CEO of JFE Steel Corporation.

JSW Steel has a total market capitalisation of ₹2.9 lakh crore, as of December 3, 2025, according to data on the NSE.