JSW Infra to dilute 14% promoter stake for Rs 39,000 cr expansion, eyes acquisitions in logistics

Alongside its ongoing expansion, India’s second-largest private port operator aims to aggressively bid for privatised terminals and acquire stressed logistics assets through the NCLT process.

The promoter family, currently holding 85.61% of the company, will reduce its stake below 75% to comply with regulatory norms requiring a minimum public shareholding within three years of listing, according to the report.

JSW Infra, which went public in September 2023, will maintain a 70:30 debt-to-equity ratio for its capex plan.

The company also intends to fund part of its equity requirements through internal cash accruals.

"Existing cash will be used for equity in the Rs 39,000-crore expansion, covering 25-30% of the remaining debt," said Lalit Singhvi, Whole-time Director & CFO, JSW Infrastructure, reported The Economic Times.

Expansion & acquisitions

JSW Infra currently operates 10 port concessions in India, with a 174 MTPA capacity, and manages liquid storage and bulk terminals in Fujairah and Dibba, UAE.

The company is keen on expanding its logistics footprint, viewing it as a natural extension to enhance customer retention through last-mile connectivity.

“We will explore acquisitions in this space, including NCLT-bound companies or those struggling to scale,” Singhvi was quoted as saying by The Economic Times.

Additionally, JSW Infra will bid for upcoming ports and terminals.

Debt & funding strategy

JSW Infra plans to raise debt from both Indian and international lenders. Singhvi explained that rupee loans will fund domestic projects, while dollar-denominated debt may support overseas ventures like the UAE oil tank terminal, which was previously financed through a $400-million bond issue.

"The debt mix will depend on interest rates at the time. Currently, no hedging is required as dollar inflows exceed outflows, with 18% of revenue coming from vessel-related international charges," Singhvi added, the report said.

According to the report, the company has earmarked Rs 30,000 crore for port expansions and greenfield projects and Rs 9,000 crore for logistics. Key projects include:

Jatadhar Port (Rs 3,000 crore) – Ready by FY28
Keni Port (Rs 4,119 crore) – Completion by FY29
Rs 4,000-crore slurry pipeline – To be operational by April 2027
Navkar Corp logistics network expansion – Targeted for FY30

Ebitda & cargo growth

JSW Infra expects a 12-15% increase in Ebitda for FY26, alongside a 10% revenue growth, primarily driven by third-party cargo expansion.

"We anticipate over 10% revenue growth in FY26," Singhvi stated, adding that port margins are expected to remain stable at 52-53%, while logistics margins could improve from 11-12% to 15-16%, according to the report.

The company also aims to increase capacity utilisation from 66% to 75% by FY26. Notably, its container cargo segment will expand, with Mangalore’s capacity set to double from 200,000 TEUs to 400,000 TEUs, while new projects like Murbe terminal will further strengthen its position.

Shipbuilding ambitions

Following the government's budget push for shipbuilding, JSW Infra is exploring entry into the sector.

"We own 18 ships from China, Korea, and Bangladesh, but we want ships to be built in India too. Discussions are at an early stage," the company stated, according to the report.