JSW Infrastructure to Buy 3 Rail Logistics Companies for ₹1,212 Crore

JSW Infrastructure has taken a major step into the railway rakes business by purchasing 3 JSW-owned rail logistics companies for ₹1,212 crore. Its subsidiary, JSW Port Logistics, has signed a Share Purchase Agreement (SPA) to acquire full ownership of:

• JSW Rail Infra Logistics
• JSW Minerals Rail Logistics
• JSW (South) Rail Logistics

Instant Access to Key Railway Schemes

Through this deal, JSW Infrastructure will gain access to 2 major Indian Railways programmes:

• General Purpose Wagon Investment Scheme (GPWIS)
• Liberalised Special Freight Train Operator (LSFTO)

The group already has 21 operational rakes as of November 30, with 4 more coming soon. These rakes come with long-term licenses under these schemes, giving the company a ready operational platform.

Builds on Last-Mile Logistics Expansion

JSW Infrastructure said the acquisition will be EPS-accretive from day one, meaning it will immediately add to earnings. 
This move also follows the company’s October 2024 acquisition of Navkar Corp, which marked its entry into last-mile logistics.

After the acquisition is completed, all 3 logistics entities will become step-down wholly owned subsidiaries. The deal is subject to regulatory and shareholder approvals.

Dual Revenue Model for Steady Income

The rake operator business provides:

• Rebates from Indian Railways
• Market premiums from customers

This dual-income model ensures stable, annuity-like revenue, supported by high-volume industries such as steel and cement.

Key Transaction Highlights

The acquired companies come with:

• Valid licences and approved routes under GPWIS and LSFTO
• 10-year contracts with major clients including JSW Steel and Bhushan Power & Steel
• Expected annualised EBITDA of ₹150 crore by FY27, implying an EV/EBITDA of 8.1x

JSW Infrastructure plans to expand its rake fleet from 25 rakes after acquisition to 45 rakes by FY27, and further to 110 rakes by FY30.

Approvals and Timeline

The deal requires approvals from:

• Ministry of Railways
• JSW Infrastructure shareholders

The company aims to finish the transaction within 30 days after all conditions are met.

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JSW Infra Share Price Movement

JSW Infrastructure share price (NSE: JSWINFRA) is trading at ₹261.50, down ₹1.45 (0.55%) as of 10:56 am on December 9. The stock opened at ₹264.20, touched a high of ₹265.60, and slipped to a low of ₹258.10 during the session. The company has a market capitalisation of ₹54,13 crore and a P/E ratio of 34.56. JSW Infrastructure’s 52-week high stands at ₹349, while the 52-week low is ₹218.20. The stock offers a dividend yield of 0.31%, with a quarterly dividend payout of ₹0.20.

Conclusion

JSW Infrastructure’s ₹1,212 crore acquisition marks a strong push into the rail logistics sector. With access to railway schemes, a ready fleet, long-term contracts, and stable revenue streams, the company is positioning itself for major growth in rail-based freight logistics over the next few years.

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