JSW Infra to acquire 3 rail logistics arms for ₹1,212 crore
The deal is for the 100% acquisition of JSW Rail Infra Logistics, JSW Minerals Rail Logistics, and JSW (South) Rail Logistics through a Share Purchase Agreement.;
JSW Infrastructure announced that its subsidiary, JSW Port Logistics, will acquire three rail logistics companies from JSW Shipping & Logistic for an enterprise value of ₹1,212 crore. The deal involves purchasing a 100% stake in JSW Rail Infra Logistics, JSW Minerals Rail Logistics, and JSW (South) Rail Logistics via a Share Purchase Agreement (SPA).
This strategic acquisition grants JSW Infrastructure immediate access to the Indian Railways’ two crucial freight programs: the general purpose wagon investment scheme (GPWIS) and the liberalised special freight train operator (LSFTO) scheme.
The acquired entities come with a ready fleet of 21 rakes as of November 30, with four more slated for delivery, all operating under long-term licenses granted by the railway schemes.
This move is a direct build-out of JSW Infrastructure’s strategy to create an end-to-end logistics platform, following its entry into last-mile logistics with the acquisition of Navkar Corp in October 2024.
According to the company’s BSE filing, the transaction is expected to be EPS accretive from the first day of operations. The rake operator business is particularly attractive, offering a dual revenue stream, rebates from Indian Railways and market premiums from customers, which provides stable, annuity-like earnings backed by core industries like steel and cement.
JSW Infrastructure projects the acquired businesses to deliver an annualised EBITDA of ₹150 crore by FY27, which translates into an attractive EV/EBITDA multiple of 8.1x.
Looking ahead, the company aims to scale its rake fleet substantially, from 25 post-acquisition to 45 by FY27, and further to 110 rakes by FY30.
The transaction, which will result in the three companies becoming step-down wholly owned subsidiaries of JSW Infrastructure, is contingent upon the fulfilment of conditions in the SPA, including regulatory approvals.
Specifically, the acquisition requires the green light from the Ministry of Railways and the shareholders of JSW Infrastructure, with the company expecting the deal to close within 30 days of meeting all conditions precedent.