The deal for International Cargo Terminals and Rail Infrastructure is likely to close in early April
Part of the proceeds of the stake sale will go towards retiring the Piramal debt
Mumbai-based logistics firm JM Baxi is in the final stages of discussions to raise ₹1,400 crore as equity investment from the Canada Pension Plan Investment Board (CPPIB), three people aware of these discussions said. The group houses several businesses such as logistics services, cold chain storage, cargo terminal handling at ports and managing inland container depots.
The investment will be for a 35% equity stake in International Cargo Terminals and Rail Infrastructure Pvt. Ltd (ICTRIPL), a Delhi-based subsidiary of the JM Baxi Group which handles certain port terminals and infrastructure business, one of the persons mentioned above said. The deal is likely to close in early April, the person said.
In June 2019, The Financial Express reported that the group was in talks with several investors to raise close to $200 million for a significant minority stake. It cited the group’s discussions with Multiples Private Equity, Bain Capital Private Equity, Warburg Pincus, IFC, and Caisse de dépôt et placement du Québec for the funding.
Mint did not receive a response to emails sent to the JM Baxi group, while a spokesperson for CPPIB chose not to comment.
The JM Baxi Group is one of India’s leading integrated logistics, services and transportation conglomerates, with a focus on port-based logistics. It operates international cargo terminals at several major ports in India, including Mumbai, Visakhapatnam, Haldia, Paradip, Kandla and Jamnagar, as well as an inland container terminal in Haryana. Other businesses of the group include JM Baxi & Co, United Liner Shipping Services Llp, Container Movement (Bombay) Transport Pvt. Ltd, Arya Offshore Services Ltd, K Steamships Agencies Pvt. Ltd, and Boxco Shipping Services Pvt. Ltd. The group also has a licence from Indian Railways to run private container rakes that connect the hinterland with gateway ports.
In 2017, the group raised ₹530 crore from Piramal Capital.
“Part of the proceeds of this stake sale will go towards retiring the Piramal debt," said another of the three persons aware of discussions within the group.