The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the amalgamation of Piombino Steel Limited with JSW Steel, paving the way for the consolidation of the two entities. According to reports from Informist Media, the tribunal pronounced its order on Friday, October 16, 2026, with the scheme becoming effective once the companies file the certified order with the Registrar of Companies, Mumbai. The appointed date for the merger is January 1, 2026. The merger will allow JSW Steel to directly own Bhushan Power & Steel and reduce the number of layers in its corporate structure.
The merger is aimed at aligning JSW Steel's long-term strategic interests by enabling it to directly hold its investment in Bhushan Power and Steel Limited (BPSL). As reported by Informist Media, this would facilitate transactions and investments related to BPSL's business without the involvement of minority shareholders. The consolidation is expected to provide JSW Steel with additional cash to fund its growth plans, reduce the number of entities and regulatory compliances, and lower administrative and overhead costs. It is also expected to simplify financial consolidation and eliminate duplication in record-keeping and management functions, while reducing the time and effort required to consolidate financial statements.
Under the share-swap arrangement, shareholders of Piombino Steel will receive 10 fully paid-up equity shares of JSW Steel, with a face value of ₹1 each, for every 156 fully paid-up equity shares of Piombino Steel, with a face value of ₹10 each. According to the tribunal order, the NCLT order directs the companies to file a certified copy of the order and the scheme with the Registrar of Companies within 30 days of receiving the order. Piombino Steel will be dissolved without winding up following the amalgamation. Both companies operate in similar businesses, making the merger strategically beneficial for operational synergies.
Piombino Steel Limited, the Transferor Company, was incorporated in September 2018 and operates in sectors such as steel and allied products, iron ore, coal, and metal scrap. Its authorised share capital stands at ₹1700 crore. Meanwhile, JSW Steel Limited, the Transferee Company, was initially established as Jindal Vijayanagar Steel Limited in 1994 and is listed on both BSE and NSE. The company has an authorised share capital of ₹1098 crore and is a major player in the steel industry both in India and globally. The Scheme of Amalgamation was approved by the boards of both companies in December 2025, with the NCLT's order granting judicial endorsement under Sections 230 to 232 of the Companies Act, 2013, along with other relevant provisions.
The merger scheme received strong shareholder support with 94.86% of valid votes cast by JSW Steel equity shareholders and 97.20% of valid votes cast by public shareholders approving the amalgamation, according to the tribunal order. Although the NCLT has sanctioned the scheme, the amalgamation is not yet effective. JSW Steel said the scheme will become effective after the certified NCLT order is filed by all the companies with the Registrar of Companies, Mumbai. The company will inform the stock exchanges once the effective date is determined. Shares of JSW Steel closed 1.3% higher at ₹1,216.30 on Friday on the National Stock Exchange, reflecting investor confidence in the strategic benefits of the merger.
