JSW Infra shares gain after acquiring slurry pipeline business for Rs 1,617 crore

Over the past month, shares of JSW Infra have skyrocketed by more than 20 percent

Shares of JSW Infrastructure gained mildly to Rs 318 apiece on March 27 after successfully acquiring the slurry pipeline business from JSW Utkal Steel, its wholly owned subsidiary, for Rs 1,617 crore.

Over the past month, shares of JSW Infra have skyrocketed by more than 20 percent, significantly outpacing the Nifty 50 index, which has seen a modest rise of just 4 percent.

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In a strategic move, JSW Infra has also entered into a long-term take-or-pay agreement with JSW Steel for transporting iron ore slurry via the newly acquired pipeline. This agreement, set for a 20-year duration, underscores the company’s commitment to strengthening its logistics operations. The acquisition received shareholder approval through a postal ballot on January 26.

This deal not only bolsters JSW Infrastructure’s logistics portfolio but also seamlessly aligns with JSW Steel’s raw material transportation strategy in Odisha.

As India’s second-largest commercial port operator, JSW Infra boasts an impressive operational capacity of 170 metric tonnes per annum (MTPA). The company operates three ports and seven terminals across the country, spanning both the east and west coasts, with a combined capacity of 165 MTPA. Additionally, it manages a 5 MTPA liquid storage terminal in Fujairah, UAE. Expanding its horizons, JSW Infra is actively exploring inorganic growth opportunities in the ports and logistics sector.

Looking ahead, analysts at Motilal Oswal foresee robust expansion in India’s ports sector. Between FY23 and FY28, the nation’s ports are projected to add 500-550 MTPA of capacity annually, driven by surging demand for petroleum, oil, lubricants (POL), coal, and containerized cargo.

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