JSW Infrastructure finalises ₹1,212 crore deal for three rail logistics arms, boosting its multimodal capabilities.
A significant strategic expansion into the railway rake industry has been announced by JSW Infrastructure. A Share Purchase Agreement (SPA) has been executed by its wholly-owned subsidiary, JSW Port Logistics (JSWPLPL), to purchase 100 per cent of three rail logistics companies from JSW Shipping & Logistics. The transaction has an enterprise value of ₹1,212 crore.
Important Acquisition Information: JSW Port Logistics, a fully owned subsidiary of JSW Infrastructure, is the acquiring entity.
Acquired organisations include Rail Infra Logistics, JSW, Rail Logistics, JSW Minerals, and Rail Logistics, JSW (South) ₹1,212 crore was the transaction value.
Post-Acquisition Status: JSW Infrastructure will acquire the three businesses as step-down wholly-owned subsidiaries. Shareholder and regulatory clearances, including a crucial Ministry of Railways approval, are required for the transaction. After all requirements are satisfied, the business anticipates closing the deal in 30 days.
JSW Infrastructure’s objective of creating an integrated end-to-end multimodal logistics platform is significantly advanced by the acquisition.
Two significant Indian Railways programmes are immediately accessible through the agreement:
General Purpose Waggon Investment Scheme (GPWIS): Since Indian Railways has placed a ban on issuing new GPWIS licenses until February 2027, the acquired enterprises’ valid GPWIS licenses are especially valuable.
The Special Freight Train Operator (LSFTO) programme has been liberalised.
The acquired companies now have a fleet of 21 rakes (four more are on the way), and they have long-term transport contracts with clients like JSW Steel and Bhushan Power and Steel that last up to ten years.
JSW Infrastructure intends to grow its rail fleet quickly:
By FY27, increase the fleet of rakes from 25 (after acquisition) to 45.
By FY30, expand the fleet to 110 rakes.
Rebates from Indian Railways and market premiums from clients make up the rake operator business’s advantageous dual-revenue model, which generates steady, annuity-like profits. By FY27, the acquired companies are expected to generate an annualised EBITDA of ₹150 crore.
SOURCE – ET INFRA
