The shares of India’s second-largest commercial port operator gained 3 percent to Rs 170.75 a share on Monday’s early trade after the company in talks to buy the SP Group arm for Rs 3,000 crore.
At 12:22 p.m., JSW Infrastructure Ltd shares gained 1.96 percent of Rs 168.90 on the National Stock Exchange from the previous close price. The company has a market capitalization of Rs 35,689 crore.
As per the Economic Times report, JSW Infrastructure is in talks to buy Shapoorji Pallonji’s (SP) ports arm, Gopalpur Ports, at an estimated enterprise value of Rs 3,000 crore including the company’s debt.
Gopalpur Ports operates an all-weather deep-draft port in Gopalpur, Odisha, which is strategically located between the well-known ports of Paradip and Vizag on India’s eastern coast.
It specialises in handling iron ore cargo, a key raw material in JSW’s steel business. JSW Steel sees Odisha-based Gopalpur ports as a strategic fit that will complement its steel-making operations. Port at Gopalpur could add about 25 million tonnes per annum of further capacity to JSW’s ports portfolio.
JSW infrastructure shares have gained 7.5 percent since its first public offering on October 3, 2023.
JSW Infrastructure revenue has increased by 40 percent yearly, from Rs 2,273 crore in FY 22-23 to Rs 3,195 crore in FY 23-24. In the same time frame, the company’s net profit climbed by 127 percent, from Rs 330 crore to Rs 750 crore.
In the recent financial year, the company reported a net profit margin of 12.61 percent and an operating margin of 96.53 percent.
According to the recent shareholding pattern, the company promoters hold 85.61 percent of the company, while Foreign institutional investors hold 3.64 percent and retail investors hold a 3.43 percent stake in the company.
JSW Infrastructure Limited provides maritime-related services including, cargo handling, storage solutions, and logistics services
Written by Omkar Chitnis
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