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JSW Steel will transfer ₹19,300 crore into the escrow account created with Punjab National Bank to end its the three-year wait to acquire the stressed Bhushan Power and Steel, in the insolvency driven process.
The company will execute the deal through a special purpose vehicle, sources said.
It has already raised a debt of ₹11,000 crore and the rest would be sourced from internal accruals, it added.
State Bank of India and Bank of Baroda have funded the debt portion for executing deal, said a source.
Interestingly, the Supreme Court is still hearing the objections raised against Enforcement Directorate decision to attach BPSL plant as part of its investigation.
Earlier, JSW Steel had expressed intention to get private equity investment in the SPV once the deal is done.
It will be interesting to see if JSW Steel will bring in the private equity investors even before the Apex Court delivers its verdict or wait for the final judgement.
Lenders would return the amount paid by JSW Steel with two months, if the Apex court verdict goes against it, as per the agreement signed by JSW Steel with the bankers.
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