JSW Infrastructure is in talks to buy Shapoorji Pallonji’s (SP) ports arm, Gopalpur Ports, at an estimated enterprise value of 3,000 crore that includes the company’s debt, according to people familiar with the matter.
The unit is being divested as part of commitments that SP’s promoters, the Mistry family, have made to financiers in loan covenants entered into with them, according to the sources. As per the covenants, SP Group has committed to divest the unit by March 31 next year. JSW Infrastructure, whose shares were listed on bourses earlier this month, sees Odisha-based Gopalpur Ports as a strategic fit that will complement its steel-making operations.
Gopalpur Ports operates an all-weather deep-draft port in Gopalpur town of Odisha, which is strategically located between the well-known Paradip and Vizag ports on the eastern coast of India.
It specialises in handling iron ore cargo, a key raw material in JSW’s steel business. Port at Gopalpur could add about 25 million tonne per annum of further capacity to JSW’s ports portfolio.
