MUMBAI: Integrated logistics company JM Baxi plans to file its first document for its Rs 2,500 crore IPO scheduled for this month, its chief executive said.
The company is part of the 106-year-old JM Baxi Group, which operates container terminals, container freight stations and inland container depots. It also offers freight forwarding services.
“Sometime in late June we plan to submit our DRHP (Draft Red Herring Prospectus) to the Securities and Exchange Board of India (Sebi),” Dhruv Kotak told ET.
“Depending on the approvals, we would try to get to the market sometime towards the end of the year,” he added.
The Bain Capital-backed company plans to use the money to fund brownfield port projects it intends to bid for and corporate acquisitions, Kotak said. He added that Bain would make a partial exit through the share offering but would remain invested in the company.
The IPO will be managed by
Capital, Axis Cap, Bank of America Securities and Credit Suisse.
Kotak said the Ministry of Shipping has 30 projects that need to be tendered on a build, operate and transfer basis, which is a several-decade contract during which a company is licensed to develop the facility by building new terminals and other facilities and expand. From the entire pipeline of projects valued at Rs 20,000 crore, JM Baxi intends to bid for projects valued at up to Rs 5,000 crore in the next few years.
These include projects at the Port of Tuticorin and Nhava Sheva or the Jawaharlal Nehru Port Trust. Kotak said the company is looking for acquisitions in the logistics sector.
“The approach to the capital markets for funds is always needs-based. You need the capital for a certain specific function. And we need that capital to try and capture some of these growth opportunities that we see ahead in our industry, Kotak said.
“Whether it’s the national monetization pipeline or organic opportunities on the rail side or the logistics side, I think we’re at a tipping point now where we see a lot of great opportunities in India. And obviously we’re in the middle of bidding on a number of them. There are several acquisitions that we’ve made recently and a few others that we would look at.
“We need to add more capacity to serve our customers to ensure we scale together with them to meet their logistics needs and meet their end-to-end supply chain needs. And of course if we need the capital, we have to tap the market,” he added.
In March, JM Baxi purchased units from two logistic companies for Rs 200 crore. It bought the heavy equipment moving business of a large logistics company
. It has also been agreed to purchase a unit from Lift and Shift Private Limited that will transport heavy equipment and components to locations where large infrastructure or manufacturing projects such as petrochemical plants are being constructed.
In April, it bought the remaining 26% stake in Visakha Container Terminal in Vizag from DP World in Dubai. It now owns 100% of the terminal.
The company’s FY22 debt is estimated at around Rs 1,950 crore. Cash on hand is around Rs 540 crore.
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