Freight, Foresight, and Fortune: JSW Infra’s Winning Bid for NCR Rail Infra

Image Source: CNBCTV18

In a big development for India's logistics and infrastructure sector, JSW Infrastructure has been cleared by the Committee of Creditors (CoC) to acquire NCR Rail Infrastructure Limited under its resolution plan. The acquisition is likely to strengthen JSW Infra's hold on the fast-rising logistics corridor of North India.

Key Highlights

CoC Approval & Way Forward: The CoC has approved JSW Infra's resolution plan for NCR Rail Infrastructure under the Insolvency and Bankruptcy Code (IBC), 2016. The resolution professional has extended JSW Infra a Letter of Intent (LoI), a major milestone towards the acquisition. The plan now stands at the precipice of getting final approvals from the National Company Law Tribunal (NCLT) and other regulators.

Strategic Asset Acquisition: NCR Rail Infrastructure owns a Private Freight Terminal (PFT) at Khurja, Uttar Pradesh, strategically located about 90 kilometers from New Delhi and 40 kilometers from the new Jewar Airport. The terminal is equipped with six rail lines, two functional warehouses of 0.2 million sq. ft., and a land bank of 130 acres—to be integrated into JSW Infra's current portfolio.

Competitive Bidding: The insolvency process of NCR Rail Infrastructure drew active interest with 25 EoIs pouring in, including some of the biggies like Ambuja Cements (Adani Group).

Expansion Drive: JSW Infra's intensive expansion drive gets a boost with this acquisition, after a recent order win worth ₹740 crore at Kolkata Port. The company is keenly on the lookout for inorganic opportunities to grow its presence in India's terminal and logistics segment.

Market Impact: JSW Infrastructure shares closed at ₹312.20 on the BSE marginally lower, as the market displays cautious optimism awaiting regulatory approvals and integration news.

"Aquisition of NCR Rail Infra is a strategic move for JSW Infra in pursuing our vision to build a robust, pan-India logistics network," said JSW Infra Whole-Time Director and CFO Lalit Singhvi.

Source: Business Standard, CNBC-TV18, TradingView/Reuters