Billionaire Sajjan Jindal-led JSW Infrastructure Ltd has finalised a deal to acquire Mumbai-based Navkar Corp, in a transaction aimed at expanding its logistics business.
JSW Infrastructure, part of the JSW Group, is the country’s second-largest private-sector commercial port operator. It is acquiring Navkar, a multi-modal logistics company, through unit JSW Port Logistics Pvt Ltd.
According to the contours of the deal, JSW Port will acquire 70.37% of Navkar from its promoters at Rs 95.61 per share for a total of Rs 1,012.6 crore ($121 million). It will also make an open offer as per regulatory norms to buy up to 26% from public shareholders at a price of Rs 105.32 per share for a total of Rs 412 crore.
Navkar's enterprise value in this deal is Rs 1,644.03 crore, JSW said in a stock-exchange filing.
Navkar, which is listed both on the BSE and the National Stock Exchange, operates key facilities including a container freight station and a cargo terminal at Somathane, Panvel and two container freight stations at Ajivali, Panvel. It also runs an Inland Container Depot at Morbi, Gujarat. The ICD is part of a multimodal logistics park.
In addition, Navkar has a container train operator license. It has also established a foothold with facilities in the Western India industrial belt across Maharashtra and Gujarat.
JSW Infra said the acquisition aligns with its “strategy to pursue value-accretive organic and inorganic opportunities in the port and related infrastructure sector.”
“The acquisition will result in the company's foray into logistics and other value-added services. It will facilitate the business to offer improved port connectivity and streamlined supply chain solutions to its customers,” JSW said.
“The acquisition also marks a first step towards the company’s long-term vision of building and scaling an efficient pan-India logistics network for last-mile connectivity. Further, it complements the growth strategy of increasing the company’s share of port-related container cargo driven by India’s strong economic fundamentals,” it added.
JM Financial acted as exclusive advisor to JSW Infrastructure on the transaction.
JSW Infra ranks second to Adani Ports and Special Economic Zone among private port operators. It raised Rs 2,800 crore via an initial public offering in September 2023. Its share offering was subscribed 37 times, drawing interest from institutional and retail investors.
The company handles cargo volume of 153 million tonnes a year. It won its first port concession back in 2002. As of the end of December 2022, it had nine port concessions.
