In a reversal of its earlier decision, India's Supreme Court has approved JSW Steel's US$2.3 billion acquisition of Bhushan Power and Steel (BPSL). The ruling is a significant victory for JSW Steel and is expected to boost investor confidence in India's bankruptcy resolution system.

This decision overturns a May 2025 ruling that had blocked the deal, a move which had previously shaken market faith in the country's Insolvency and Bankruptcy Code (IBC). In its latest judgment, the court recognized JSW Steel's substantial investments in modernizing BPSL and highlighted that the acquisition saved thousands of jobs by keeping the company operational.

The approval secures a major 3-million-ton steel plant for JSW. Analysts view the court's final endorsement as crucial for resolving a key distressed asset and for reinforcing the credibility of India's bankruptcy reforms, which could attract more global investment into the sector.