JSW Infrastructure has announced a major expansion into the railway rake business by buying three JSW-owned rake companies for Rs 1,212 crore. The company in its BSE filing said that JSW Port Logistics, it’s wholly owned subsidiary, has signed a Share Purchase Agreement (SPA) to buy 100% stake in JSW Rail Infra Logistics, JSW Minerals Rail Logistics and JSW (South) Rail Logistics.
Agreement gives access to railway schemes and ready fleet
With this acquisition, JSW Infrastructure will get immediate access to the Indian Railways’ General Purpose Wagon Investment Scheme (GPWIS) and the Liberalized Special Freight Train Operator (LSFTO) scheme. The group has already secure a fleet of 21 rakes as of November 30, with four more on the way. These assets come with long-term licenses under the railway schemes.
The company said the move is EPS accretive from the first day and builds on its October 2024 acquisition of Navkar Corp, which marked its entry into last-mile logistics.
Dual-revenue model to support stable income
After the completion of the deal, all three companies will become step-down wholly owned subsidiaries of JSW Infrastructure. The transaction remains subject to fulfilment of conditions mentioned in the SPA, including regulatory approvals.
JSW Infrastructure noted that the rake operator business offers dual revenue streams — rebates from Indian Railways and market premiums from customers. This model ensures stable and annuity-like earnings supported by industries such as steel and cement.
Key highlights of the transaction
The company said the acquired entities have valid licences and approved routes under GPWIS and LSFTO, licences that allow private players to operate freight rakes on approved routes and earn incentives. It also has revenue visibility through 10-year contracts with customers like JSW Steel and Bhushan Power and Steel.
JSW Infrastructure expects the acquired businesses to deliver an annualised EBITDA of Rs 150 crore by FY27, translating into an EV/EBITDA of 8.1x.
The company aims to scale its rake fleet from 25 after acquisition to 45 rakes by FY27, and further to 110 rakes by FY30.
The acquisition requires approval from the Ministry of Railways as well as shareholders of JSW Infrastructure. The company expects the transaction to close within 30 days after meeting all conditions precedent.
Share price of JSW Infrastructure
The share price of JSW Infrastructure has declined 18.88% so far this year.