JSW Port Logistics to acquire 70.37% stake in Navkar Corporation, to launch open offer

JSW Port will acquire over 10.59 crore shares of the company at a share price of ₹95.61. Since the company will have voting rights over 25% following the transaction, an open offer will be triggered under which the company will acquire over 3.91 crore equity shares, constituting 26% of Navkar’s total share capital at a price of ₹105.32.

Navkar Corporation is a logistics service provider, offering a range of services across the logistics supply chain, ranging from transportation services, and consolidation/de-consolidation before export or import, to storage and warehousing services. It has one container freight station (CFS) and a Gati Shakti cargo terminal at Panvel. The company also has two CFS at Ajivali, Panvel as well as an inland container depot (ICD) at Morbi, Gujarat which is part of the Multimodal Logistics Park (MMLP). Additionally, Navkar Corporation possesses Category 1 and Category 2 container train operator licenses.

JSW Infra said the acquisition is in line with the company’s strategy to pursue organic and inorganic opportunities within the port and related infrastructure sector. The acquisition will allow the company to expand its business in the logistics sector and other value-added services. In addition, the company will also be able to provide better port connectivity and enhanced supply chain solutions to its customers.

The company said that the acquisition also marks a first step towards its long-term vision of building and scaling an efficient pan-India logistics network for last-mile connectivity and complements the growth strategy of increasing its share of port-related container cargo.

Shares of the company have risen by nearly 52% since the beginning of the year. The stock has gained over 103% in the last one year.