"JSW Infra in Negotiations to Acquire Gopalpur Ports, an SP Group Subsidiary, for ₹3,000 Crores"

JSW Infrastructure is currently engaged in negotiations to purchase Gopalpur Ports, an arm of the Shapoorji Pallonji (SP) Group, at an estimated enterprise value of ₹3,000 crores, which includes the company's outstanding debt. This development comes from sources familiar with the matter.

The divestiture of this unit is part of the commitments made by SP Group's promoters, the Mistry family, in accordance with loan covenants established with financiers. Under these covenants, the SP Group has pledged to divest this unit by March 31 of the coming year. JSW Infrastructure, which recently made its stock market debut, views Gopalpur Ports, located in Odisha, as a strategic complement to its steel manufacturing operations.

Gopalpur Ports operates an all-weather deep-draft port situated in Gopalpur town, Odisha, strategically positioned between the prominent Paradip and Vizag ports along the eastern coast of India. The port specializes in handling iron ore cargo, a crucial raw material in JSW's steel production. Nevertheless, it's essential to note that ongoing discussions may not necessarily culminate in a final agreement, as indicated by the sources.

When contacted, a senior JSW official declined to provide comments on the matter, and Shapoorji Pallonji had not responded to queries from ET at the time of this report's publication.

JSW Infrastructure, the second-largest private port operator in India, following Adani Ports and Special Economic Zone, successfully raised ₹2,800 crores through an initial public offering of shares in September. The offering witnessed significant interest from institutional and retail investors, with a subscription rate of 37 times the shares offered.

ET