JSW Group stock jumps 6 percent in the day’s after it receives a letter of award (LOA) from Karnataka Maritime Board, for the development of a port in Keni, Karnataka with an estimated cost of Rs. 4,119 Crores. 

At 9:58 a.m the shares of JSW Infrastructure Limited were trading at Rs. 213.70 up 5.37 percent from its previous day close price of Rs. 202.80 and its market capitalization is Rs. 44,908 Crores. 

JSW Infrastructure Limited has received a Letter of Award from Karnataka Maritime Board, Government of Karnataka for the development of all-weather, deep-water, greenfield port at Keni in Karnataka on Public Private Partnership basis and the estimated cost of the project is Rs. 4,119 Crores with initial capacity of 30 MTPA. 

The proposed project i.e, the Keni Port will have modern environment-friendly mechanised facilities for handling of cape-size vessels. It is meant to handle all types of the cargoes on the west coast in North Karnataka region to serve the industries in the area covering Bellary, Hospet, Hubballi, Kalaburagi and South Maharashtra. 

The capacity of the proposed port shall be 30 MTPA in the initial phase with a potential to increase it substantially in the future. As per the Karnataka Maritime Perspective Plan, Karnataka is currently having hinterland potential of 44 MTPA of cargo and the same is expected to increase to 117 MTPA by 2035. 

The keni port’s hinterland is primarily of coal and coke cargo which is being utilized for cement, steel and power plants. It is also further supported by limestone, iron ore, dolomite handlings and export of finished steel products. 

Rail connectivity to the Keni Port site is proposed to be on the southern side and will be connected with the existing Konkan line to north of the Ankola Station. The railway alignment will be developed with a total length of approximately 8 km. 

The company’s revenue grew 40.55 percent from Rs. 2,273.06 Crores in FY22 to Rs. 3,194.74 Crores, accompanied by increasing profits of Rs. 327.95 Crores to Rs. 739.83 Crores. 

It has reported a return on equity (ROE) of 20.63 percent and a return on capital employed (ROCE) of 17.68 percent, it is making good returns on its equity and capital employed. 

According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold 85.61 percent stake, the Domestic Institutional Investors hold 4.14 percent and the Foreign Institutional Investors (FII) hold 3.64 percent. 

JSW Infrastructure Limited which is part the famous indian conglomerate the JSW Group, it is the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2023 operating environment-friendly seaports & terminals. It currently operates nine state port concessions strategically located on the west and east coasts of India.

Written by: Bharath K.S


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