JSW Infrastructure to buy three rail logistics subsidiaries in ₹1,212-crore push into freight rake operations

JSW Infrastructure has announced a significant move to strengthen its presence in the rail logistics sector with the planned acquisition of three group-owned rail logistics companies for ₹1,212 crore. In a filing to the BSE, the company said its wholly owned subsidiary, JSW Port Logistics, has signed a Share Purchase Agreement to acquire full ownership of JSW Rail Infra Logistics, JSW Minerals Rail Logistics, and JSW (South) Rail Logistics.

The acquisition will give JSW Infrastructure immediate entry into two key Indian Railways programmes — the General-Purpose Wagon Investment Scheme (GPWIS) and the Liberalized Special Freight Train Operator (LSFTO) scheme. These schemes allow private operators to run freight rakes on designated routes and earn incentives. As of November 30, the group has a fleet of 21 rakes, with four additional rakes already in the pipeline, all backed by long-term licences under these government schemes.

According to the company, the transaction will be EPS accretive from day one and complements JSW Infrastructure’s broader strategy to build an integrated logistics platform. The company entered the last-mile logistics space in October 2024 with its acquisition of Navkar Corporation.

Once the deal is completed, all three acquired entities will become step-down wholly owned subsidiaries of JSW Infrastructure. The transaction is subject to regulatory clearances and fulfilment of conditions outlined in the SPA.

JSW Infrastructure highlighted that the rake operating business provides two stable revenue streams — railway rebates and premiums paid by customers. The business also benefits from strong visibility through 10-year transport contracts with anchor clients including JSW Steel and Bhushan Power & Steel.

The company expects the newly acquired entities to jointly generate an annualised EBITDA of ₹150 crore by FY27, valuing the acquisition at an EV/EBITDA multiple of 8.1x. JSW Infrastructure plans to expand its rake fleet from 25 rakes post-acquisition to 45 rakes by FY27, with an ambitious target of 110 rakes by FY30.

The deal will require approval from the Ministry of Railways and the shareholders of JSW Infrastructure. The company aims to close the transaction within 30 days of satisfying all conditions precedent.