The government-owned Temasek in Singapore, the Canadian fund CPP Investments (CPPIB), and the Swedish buyout company EQT AB, which owns Baring Private Equity Asia, are among a number of parties in separate negotiations to acquire a sizeable minority stake in JM Baxi Ports & Logistics, which is owned by the Mumbai-based JM Baxi Group.
According to two people with knowledge of the situation, the company intends to raise between Rs 3,000 and Rs 3,300 crores ($350 and $400 million), including Rs 1,200 to Rs 1,500 crores by selling new shares. The remaining shares will be sold, according to existing investor Bain Capital. Non-binding bids are awaited, the people said.
The Kotak family owns 60.8% of JM Baxi Ports & Logistics, and Bain Capital, which invested Rs 1,317 crore to acquire the shares last year, holds the remaining 39.20%. Of this investment, Rs 200 crore was added in FY22. This money would be utilized to buy two items under the JM Baxi Heavy unit and a 26% share in Visakha Container Terminal from DP World.
The promoters are receiving fundraising advice from Credit Suisse. CPP Investments, EQT, and Temasek spokespeople declined to comment, while JM Baxi Group managing director Dhruv Kotak did not return calls or emails sent to him as of Tuesday, October 12, 2022.
JM Baxi Ports & Logistics, formerly known as International Cargo Terminals and Infrastructure, was founded in 1947 and initially focused on providing stevedoring and other shipping support services. Container handling, cargo combining, shipping agency services, and ship chartering were all eventually added.
Currently, it runs a 90,000 TEU container freight station at JNPT Port, category-III licensed rail operations, a logistics park close to JNPT, Sonepat cold storage, pan-India bulk cargo operations, and bulk cargo handling operations at Rozi Jetty in Jamnagar, Gujarat.
The JM Baxi Group, established in 1916 by JM Baxi, Jayantilal Kotak, and Manilal Kotak, is one of the nation’s top players in port logistics.
