JSW Infrastructure In Talks To Buy SP Group’s Port Arm Gopalpur Ports For Rs 3,000 Cr: Report

JSW Infrastructure is reportedly in talks to buy Shapoorji Pallonji’s (SP) ports arm Gopalpur Ports at an estimated cost of Rs 3,000 crore, including the company's debt.

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The divestiture of this unit is in compliance with commitments made by the Mistry family, the promoters of SP, under the terms of loan covenants established with financiers, as per insider sources as quoted by the Economic Times.

According to these covenants, the SP Group has pledged to complete the unit's divestment by March 31 of the upcoming year. JSW Infrastructure, which recently went public, views Gopalpur Ports in Odisha as a strategic addition that will synergize effectively with its steel production operations.

Gopalpur Ports manages a deep-draft port in Gopalpur town, Odisha. This port, strategically situated on the eastern coast of India, is positioned between the prominent Paradip and Vizag ports, and it remains accessible throughout the year, regardless of weather conditions.

JSW Infrastructure, the second-largest private port operator in India, following Adani Ports and Special Economic Zone, successfully generated Rs 2,800 crore through an initial public offering of shares in September. The shares garnered immense attention from both institutional and retail investors, with a subscription rate of 37 times the offering size.

JSW Infrastructure secured its inaugural port concession in Mormugao, Goa, in 2002. By December 31, 2022, the company had acquired nine port concessions, significantly expanding its presence in the sector. With this growth, JSW Infrastructure has effectively increased its cargo handling capacity to an impressive 153 million tonnes per annum.

The company now operates terminals not only at key ports along the west coast, including Goa and Karnataka, but also on the east coast, with a significant presence in states like Odisha and Tamil Nadu.

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If negotiations lead to an agreement, the port operated by SP Group at Gopalpur has the potential to augment JSW's ports portfolio by approximately 25 million tonnes per annum in capacity. The Mistry family has been actively engaged in the restructuring of SP Group's financial position and honing its business concentration on areas conducive to profitable expansion and debt repayment.