JSW Infra zooms 4% after subsidiary picks up PNP Maritime for Rs 270 crore

Shares of JSW Infrastructure Limited advanced 4 percent to Rs 225 in early trade on December 5 after the company announced that it has entered into a share purchase agreement with SP Port Maintenance (a Shapoorji Pallonji Group company) to acquire 50 percent plus one share of PNP Maritime for about Rs 270 crore.

The agreement involves the acquisition of a majority stake in PNP Maritime Services (PNP Port), an operational port company in Shahbaj, Raigad district of Maharashtra.

Since its debut on the exchanges on October 3, the stock has gained nearly 40 percent.

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“The company aims to expand its cargo handling capacity and volume in all types of cargoes. Considering the same, this acquisition would help the JSW Infra to achieve its growth and expand its footprint,” it said in an exchange filing on December 4.

JSW added that it plans to enhance and upgrade the existing facilities at PNP Port, gradually increasing its capacity from 5 MTPA to 19 MTPA.

With this acquisition, the company will be well-placed to engage in the government’s Maritime Vision, aiding the movement of cargo through the rail-sea-rail route and coastal cargo. The development of port-based industries will be a primary focus at PNP Port, catering to multipurpose cargo including bulk, container, liquid, and more.

On completion of the transaction, PNP Maritime Services will become a  step-down subsidiary of JSW Infrastructure.

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