JM Baxi plans to file an IPO of Rs 2,500 crore, soon
The company is part of the 106-year-old JM Group, which operates container terminals, container freight stations and inland container depots. It also offers maritime agency services.
“Towards the end of June, we plan to file our DRHP (draft red herring prospectus) with the Securities and Exchange Board of India,” Kotak told ET. “Depending on approvals, we aim to hit the markets towards the end of the year,” he added.
The company, backed by Bain Capital, plans to use the money to fund disused port projects it would bid on as well as acquisitions, Kotak said. He added that Bain would take a partial exit through the stock issue, but would remain invested in the company.
The IPO will be managed by
Capital, Axis Cap, Bank of America Securities and Credit Suisse.
Kotak said the Department of Transportation has 30 projects to bid on the basis of build, operate and transfer, which is a contract spanning a few decades in which a company gets the license to develop and expand the facility by constructing new terminals and other facilities. Out of the total pipeline of projects worth ₹20,000 crore, JM Baxi aims to bid for projects worth up to ₹5,000 crore over the next few years.
These include projects at Tuticorin Port and Nava Sheva, or the Jawaharlal Nehru Port Trust. Kotak said the company is also looking for logistics acquisitions.
“The capital markets approach to funds is always needs-based. You must need the capital for some specific function. And we need that capital to be able to try to capture some of these growth opportunities that we see ahead of us in our industry,” Kotak said.
“I think we’re at an inflection point where we need to add more capacity to serve our customers, to make sure we scale with them to meet their logistics requirements to meet their supply chain requirements of end to end. And obviously, if we need capital, we have to exploit the market,” he added.
In March, JM Baxi agreed to acquire units from two logistics companies for ₹200 crore. He bought the heavy machinery moving business from a large logistics company
. It has also agreed to purchase a unit of Lift and Shift Private Limited which moves heavy equipment and components to places where large infrastructure or manufacturing projects are being installed, such as petrochemical plants.
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