Company planning Initial Public Offering of ₹2,500 crore

JM Baxi Ports & Logistics Limited (JMBPLL), an integrated maritime logistics services provider, is planning to bid for various upcoming port and related projects such as rail links, warehouses, roads and cold chain facilities worth ₹7,000 crore in five years.

“The National Monetisation Pipeline of the Government of India (GOI) is lining up 30-to-40 projects in the next 3-to-5 years,” said Dhruv Kotak, managing director, JMBPLL in an interview.

“Thanks to GOI’s initiatives such as National Infrastructure Pipeine, National Monetisation Pipeline, PM Gati Shakti as well as PLI scheme, the bidding opportunity for emerging projects with respect to the privatisation of major ports (including on a BOT basis) will be worth around ₹20,000 crore,” he said. 

“We are targeting to bid for major port projects valued at anything from ₹3,000 crore to ₹5,000 crore out of this huge pie subject to various feasibility and competitive bidding parameters,” he added.

JMBPLL will also target to bid an additional ₹1,500-to-₹2,000 crore in mostly brownfield projects in the port-linked land infrastructure side during the next five years, Mr. Kotak added. 

The proposed investment in these projects would be financed through a mix of debt, internal accruals and even the capital market, he further said.

The company is proposing an Initial Public Offering (IPO) of ₹2,500 crore wherein Private Equity player Bain Capital will exit partly. Bain Capital had invested ₹1,500 crore in the company during the pandemic. 

The IPO will comprise a fresh issue for organic growth initiatives, including creation of a strong balance sheet anticipating the future growth potentials. 

“We have an ‘Asset-Right’ approach – brownfield asset acquisitions followed by methodical ramp-up leading to superior returns. The capital-efficient model ensures that we have one of the highest ROCE amongst key competitors in container terminal industry,” Mr. Kotak said.

The company with 5 terminals and 4 logistics assets offers specialised logistics solutions to various stakeholders. It is working towards having one entire port terminal to be fully manned by women.   

According to Mr. Kotak, ports in eastern part of India comprising Paradip, Vishakhapatnam and Haldia are underserved markets at this point but are growing fastest in maritime logistics. “They have a huge potential due to natural minerals and resources in the region as well as their strategic locations as gateways to the Far East countries,” he said.  

JMBPLL is planning expansion of Paradip port, the second largest multipurpose major port in India and the first container handling facility of Odisha with significant growth potential. It has ramped up capacity utilisation to 70% and now Paradip exclusively handles clean cargo and containers.

Source: The Hindu