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New Delhi: JSW Infrastructure, a part of the JSW Group, said on Monday it has acquired a stake in PNP Maritime Services (PNP Port) in Maharashtra’s Raigad through its subsidiary, JSW Dharamtar Port. The company entered into a share-purchase agreement with SP Port Maintenance, a Shapoorji Pallonji Group Company, to acquire its holdings in the strategic port.
According to a statement released on Monday, JSW acquired 10,00,001 shares from SP Port Maintenance Pvt with the aim of expanding its cargo handling capacity and volume, setting a 15-day deadline to complete the acquisition. The transaction is subject to the completion of conditions outlined in the agreement. The rest of the equity in the port will be held by Nrupal Patil family, sources said.
“The estimated enterprise value of PNP Port is around ₹700 crore. Currently, the port has a capacity of 5 million tonnes per annum (MTPA), with potential expansion to 19 MTPA. JSW Infrastructure intends to enhance and upgrade the facilities and capacity of PNP Port from 5 MTPA to 19 MTPA in a phased manner,” the company said in a statement.
PNP Port a vital operational port. Situated about 20 nautical miles from Mumbai Anchorage, it operates multi-purpose jetties and has good road and rail connections to industries in Maharashtra, Madhya Pradesh, Karnataka, and other states.
JSW’s acquisition of PNP Port is seen as a strategic move due to its favorable location on the west coast. It provides JSW direct access to major cargo centers such as Mumbai, Pune, Palghar, Thane, Solapur, Bhiwandi and Nasik.
The port’s connectivity to the Central & Konkan Railway network will also facilitate efficient cargo evacuation for the company. The acquisition aligns with JSW’s plan to enhance its network and streamline cargo operations in key industrial areas.
JSW has been acquiring strategic ports through its subsidiaries of late. Recently, its subsidiary Masad Infra Services Private Limited struck a concession agreement with the Karnataka Maritime Board to develop an all-weather, deep-water, greenfield port at Keni through a public-private partnership.
JSW Infrastructure also issued a corporate guarantee of $126 million for term facilities availed by its wholly owned subsidiary JSW Terminal (Middle East) FZE from Axis Bank. This financial assistance supports the subsidiary’s acquisition of shares in Marine Oil Terminal Corp.
In November, JSW Infrastructure received a letter of award for the development of the Keni greenfield port in Karnataka at a total cost of ₹4,119 crore and an initial capacity of 30 million tonnes a year.
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Updated: 04 Dec 2023, 08:09 PM IST
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