JSW Infrastructure to acquire 70.3% stake in Navkar Corporation to expand logistics network

JSW Infrastructure Limited, a key player within the JSW Group and India‘s second-largest private commercial port operator, has announced its acquisition of a 70.37% shareholding in Navkar Corporation Limited. This acquisition, executed through its wholly owned subsidiary JSW Port Logistics Private Limited, represents a significant expansion of JSW’s logistics operations across key industrial regions in India.

The agreement entails the acquisition of the majority stake held by the promoters and promoter group of Navkar Corporation, a firm listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India. This move is contingent upon receiving the necessary regulatory approvals and fulfilling certain conditions precedent as outlined in the definitive agreements signed by both parties.

Navkar Corporation operates several critical logistics facilities within the Western India industrial belt, notably in Maharashtra and Gujarat. These include:

– One Container Freight Station (CFS) and Gati Shakti Cargo Terminal at Somathane, Pavnel.

– Two additional CFS at Ajivali, Panvel.

– An Inland Container Depot (ICD) at Morbi, Gujarat, part of the Multimodal Logistics Park (MMLP).

Additionally, Navkar holds a Container Train Operator License of Category 1 and Category 2, enabling it to extend its logistics services across India via rail.

The acquisition is aligned with JSW Infrastructure‘s strategy to pursue value-accretive opportunities both organically and through acquisitions within the port and related infrastructure sectors. By integrating Navkar’s operations, JSW Infrastructure will enhance its capabilities in logistics and value-added services, offering better port connectivity and more efficient supply chain solutions to its customers.

This move also represents a step towards JSW Infrastructure’s long-term vision of building a scalable and efficient pan-India logistics network, crucial for improving last-mile connectivity. The acquisition is poised to increase the company’s share of port-related container cargo, leveraging India’s robust economic fundamentals.

Following this transaction, JSW Infrastructure will be required to make an open offer as per the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. JM Financial Limited has served as the exclusive financial advisor to JSW Infrastructure for this transaction.

This acquisition by JSW Infrastructure not only marks its significant entry into the logistics sector but also strengthens its position as a major infrastructure player in India. By expanding its logistics services, JSW Infrastructure is set to offer comprehensive and integrated supply chain solutions across one of the fastest-growing markets in the world.