Shares of JSW Infrastructure, one of India’s leading commercial port companies, rose nearly 8.5% to hit an all-time high of ₹220 apiece in early trade on Friday after the company received LoA value ₹4,119 crores. In an exchange filing on Thursday, the company said it has emerged as the winning bidder for the development of an all-weather, deep water, green port at Keni in Karnataka under a public-private partnership.
“The Karnataka Maritime Board, Government of Karnataka, has issued the Letter of Award (LOA) to JSW Infrastructure. According to the RFP document, the estimated cost of the project is ₹4,119 crore with an initial capacity of 30 MTPA,” the company said in a regulatory filing.
Also Read: JSW Infra targets 50% external biz
The proposed Keni Port would have modern, environmentally friendly mechanized facilities for handling Cape-sized ships. It is envisioned as an all-weather, green field, multi-cargo, direct berth, deep water commercial port for handling all types of cargoes on the west coast of the North Karnataka region to serve the industries in the area covering Bellary, Hosapete. , Hubballi, Kalaburagi, and South Maharashtra, according to the company.
Commenting on the development, Mr. Arun Maheshwari, Joint MD and CEO of JSW Infrastructure, said, “Karnataka is targeting impressive industrial growth, and there has been increased emphasis on the expansion and growth of maritime infrastructure in the region. Once the concession agreement is signed, we will begin working to develop the Keni Port as an integral part of the state’s maritime infrastructure and commercial gateway.Through the development of this green port.
“We are cooperating with the Karnataka Government’s mission to meet the logistics demand of a rapidly growing state and the region’s economy. Once developed, the Keni port is expected to significantly address the growing import and export trade momentum of the region,” he added.
Read also: JSW Infra Q2 Results: Net profit up 85% to ₹256 crore, revenue up 25% YoY
JSW Infrastructure Limited is part of the JSW Group. JSW Infrastructure Limited is the second largest commercial port operator in India in terms of cargo handling capacity in fiscal 2023, operating environment-friendly seaports and terminals. It operates nine state port concessions.
The company shares were listed on the exchanges on October 03, 2023 at ₹143 per piece compared to the issue price of ₹119 per, and they kept the positive momentum further and crossed the ₹200 mark in the next 24 sessions. At current levels, the stock is trading 80% higher than its issue price.
Read also: IPO performance summary for H1 2023-24
Meanwhile, the broader Indian market saw a weak start to today’s session, with both the key indices, the Nifty 50 and the S&P BSE Sensex, opening on a flat note. Notably, NBFC stocks emerged as significant laggards, reacting to the RBI’s decision to raise the risk weights for consumer credit exposure of commercial banks. This includes 25%, bringing the risk weight to 125% for outstanding personal loans.
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Updated: 17 Nov 2023, 10:17 IST