Integrated transport company JM Baxi plans to submit its first draft of its Rs 2,500 crore scheduled for this month, its chief executive said.
The company is part of the 106-year-old JM Baxi Group, which operates terminals, freight stations and inland depots. It also provides shipping agency services.
“Somewhere in late June is where we plan to submit the DRHP (red herring prospectus) to the Securities and Exchange Board of India (Sebi),” Dhruv Kotak told ET.
“According to the approval, we intend to hit the markets at some point by the end of the year,” he added.
The company, backed by Bain Capital, plans to use the money to fund brownfield port projects in hopes of bidding and acquiring the company, Kotak said. He further added that Bain would come out a little bit on the issue of shares but would continue to invest in the company.
The IPO will be managed by Kotak Mahindra Capital, Axis Cap, Bank of America Securities and Credit Suisse.
Kotak said the Department of Transport has 30 projects that must apply for construction, operation, transfer, which is a contract that lasts for decades when the company gets a license to develop and expand the facility by building new terminals and other facilities. Of all the Rs 20,000 million projects underway, JM Baxi aims to bid for up to Rs 5,000 crore in the next few years.
This includes projects at Tuticorin port and Nava Sheva or Jawaharlal Nehru Port Trust. Kotak said the company is looking for acquisition in the transportation area.
“Approaching major financial markets is always necessary. You need money to do some work. And we need that money so that we can try to meet some of the growth opportunities that we see ahead of us in our sector,” said Kotak.
“So, whether it is a national pipeline, or a natural opportunity on the railway side, or on the transport side, I think we are now in a situation where we see a lot of good opportunities in India. And we are obviously in the middle of tendering their value. which we will look at. ”
“We need to add more capacity to assist our customers, to ensure that we comply with them in order to meet their transportation needs in order to meet their goal of eliminating supply chain requirements. And obviously, if we need money, we need to enter the market, ”he added.
In March, JM Baxi acquired units of two transport companies for Rs 200 crore. Purchased heavy equipment that runs the business of Allcargo Logistics’ big business. It also agreed to purchase a Lift and Shift Private Limited unit that delivers heavy equipment and parts to areas where major infrastructure or production projects are being set up such as petrochemical industries.
In April, it purchased the remaining 26% of the Visakha Container Terminal in Vizag at Dubai’s DP World. It now has 100% terminal.
The company’s FY22 debt is estimated at Rs 1,950 crore. Cash is estimated at Rs 540 crore.
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