JSW Infrastructure acquires rail rakes business, expanding logistics segment

JSW Infrastructure Limited, through its wholly-owned subsidiary JSW Port Logistics Private Limited, announced the acquisition of 100% equity shares in JSW Rail Infra Logistics Private Limited, JSW Minerals Rail Logistics Private Limited, and JSW (South) Rail Logistics Private Limited from JSW Shipping & Logistics Private Limited. The transaction, with an enterprise value of ₹1,212 crore (subject to working capital adjustments), is part of JSW Infrastructure’s strategy to build an end-to-end multimodal logistics platform.

This acquisition provides immediate access to 21 operational rail rakes, with plans to scale to 45 rakes by FY27 and 110 rakes by FY30. The acquired entities benefit from existing licenses under the Indian Railways’ General Purpose Wagon Investment Scheme (GPWIS) and Liberalized Special Freight Train Operator (LSFTO) schemes, providing a competitive advantage due to a moratorium on new GPWIS licenses until February 2027. The deal includes 10-year agreements with anchor customers like JSW Steel, BPSL, and JSW Cement, ensuring predictable revenue streams.

Financially, the acquisition is expected to be EPS accretive, with an annualized EBITDA of ₹150 crore by FY2027, and aligns with JSW Infrastructure’s target of achieving a ₹8,000 crore topline by 2030. The company anticipates completing the transaction within 30 days from the completion of conditions precedents, including necessary approvals from shareholders and the Ministry of Railways by Q4 FY2026, with full financial integration by Q1 FY2027.