Bain Capital in talks to invest Rs 1,500 crore in JM Baxi Group

Global private equity fund Bain Capital is in advanced talks with JM Baxi Group to invest up to 1,500 crore ($ 200 million) in exchange for a 30% stake in the retired subsidiary International Cargo Terminals & Rail Infrastructure (ICTRIPL), according to people familiar with the matter. .

A portion of the proceeds can be used to reduce debt and expand funds. Mumbai-based JM Baxi Group increased Piramal Finance’s Rs 500 crore promoter-level debt in 2017 and expires in fiscal year 23.

ICTRIPL is a unit of International Freight Terminals and Infrastructure Pvt (ICTIPL), the group’s flagship company that deals with the logistics chain, port operations, cargo generation and handling activities. It has a container cargo terminal and an agricultural logistics park at JNPT port, container terminals at Visakhapatnam, Haldia, Kandla and Paradeep ports, container train operations and an inland container depot in Sunbat, Haryana.

JM Baxi Group’s promoter and promoter entities own a 64% stake in ICTIPL, while another Contfreight subsidiary owns about 36%.

A group of private equity and pension fund managers have also shown interest in investing in ICTRIPL. In February, the Canadian Pension Plan Investment Board was negotiating to acquire a stake in ICTRIPL. However, someone said the deal had yet to materialize after the Covid-19 outbreak and the promoters launched the process again.

The Bain Capital spokesman and Krishna B. Cuttack, Chairman of JM Baxi Group, declined to comment on the matter. JM Financial manages the official process for the company to raise capital.

ICTRIPL was established on February 20, 2006 as one of the first private railway operators in India. ICTIPL owns 99% of the shares of ICTRIPL. Under the recently approved restructuring plan, rail operations will be transferred to the main ICTIPL, while the onshore container depot business will continue with ICTRIPL.

On a consolidated basis, ICTIPL’s revenue was Rs 1,397 crore in fiscal year 2020 and Ebitda was Rs 386 crore.

Founded in 1916, JM Baxi Group is India’s leading freight forwarding company with a focus on port logistics. “The company has seen a healthy upward movement with continued strong performance from the terminal operations at Visakhapatnam and the rail operations at ICTIPL,” ICRA said in a recent report.

Additionally, the health investigation levels of the rail operations, as well as the ICT Kandla and Paradeep operations, are expected to enhance the overall profitability of the group.