MUMBAI : Mumbai-based logistics firm JM Baxi Group plans to raise ₹2,000-2,500 crore through an initial public offering, people aware of the development said JM Baxi, backed by global private equity fund Bain Capital, may be valued at ₹8,500-9,000 crore in this public offering, they said. Bain will make a partial exit, while the proceeds to the company from the sale of fresh equity will be used for funding expansion.
Three investment bankers – Axis, Kotak Mahindra Capital and Credit Suisse – have been hired to run the process. The IPO is likely to hit the market by early next year, said one of the people.
Founded in 1916, the JM Baxi Group is India’s premier shipping services company, and is one of the largest integrated logistics services and transportation conglomerates, with a focus on port-based logistics.
In December, Bain Capital acquired about a 35% stake in its step-down subsidiary, International Cargo Terminals & Infrastructure (ICTIPL), for Rs 1,317 crore, handling services, handling of container & bulk cargo, containerised rail freight, inland container depot and other ancillary services through six subsidiaries and three joint ventures.
ICTIPL on a standalone basis operates container freight stations with a capacity to handle 120,000 TEUs a year. The company also has a presence in the rail business by providing container train operations through 19 rakes (12 owned and seven leased), majorly between Sonipat, Visakhapatnam, Kandla and Pipavav. Additionally, ICTIPL has a fertiliser handling facility and bulk cargo handling arrangement at Rozi Jetty in Jamnagar, Gujarat, and cold storages.
On a consolidated basis, the company posted revenue of ₹1,800 crore in the financial year ended March 31, 2021.