New Delhi, March 30 JSW Steel, led by Sajjan Jindal, announced on Monday that Japan's JFE Steel Corporation has invested ₹7,875 crore to acquire a 25 per cent stake in JSW Kalinga Steel Ltd.
The investment is the first tranche of JFE's planned stake in JSW Kalinga, with 2,26,94,524 equity shares allotted to the Japanese firm on Monday, JSW Steel said in a BSE filing.
"JFE Steel Corporation (JFE) has invested ₹7,875 crore, being the first tranche of JFE's investment in JSW Kalinga Steel Ltd (JSW Kalinga) and 2,26,94,524 equity shares of JSW Kalinga have been allotted to JFE today (i.e. March 30, 2026), resulting in JFE holding 25 per cent shareholding on a fully diluted basis in JSW Kalinga," the filing said.
Following the recent allotment and board changes at JSW Kalinga under the joint venture agreement (JVA), JSW Steel and JFE Steel have established joint control over JSW Kalinga and its wholly owned subsidiary, JSW Sambalpur Steel Ltd.
JFE's acquisition of an additional 25 per cent stake in JSW Kalinga for ₹7,875 crore will be completed as per the JVA, the filing said.
JSW Steel had earlier said JFE Steel Corporation will invest ₹15,750 crore to form a joint venture with the steel major.
The joint venture (JV) will include JSW Steel's arm, Bhushan Power & Steel Ltd's (BPSL) integrated steel plant in Odisha.
In a BSE filing, JSW Steel had said it has "entered into a strategic joint venture partnership with JFE Steel Corporation, Japan (JFE)".
The steel business undertaking of Bhushan Power and Steel Ltd (BPSL) will be transferred to a 50:50 joint venture with JFE through a slump sale, with a cash consideration of ₹24,483 crore.
JFE will invest ₹15,750 crore in two tranches to acquire a 50 per cent stake in the joint venture, it had added.
JSW Steel had acquired BPSL in 2021 through the Insolvency and Bankruptcy Code (IBC) process and transformed it from a 2.75 million tonnes per annum (MTPA) distressed unit into a profitable company with an expanded capacity of 4.5 MTP, currently employing 25,000 people.
