IPO: JM Baxi plans to file DRHP in June, listing in 2022

Mumbai: Integrated logistics company JM Baxi plans to file its initial document for its planned Rs 2,500 crore IPO this month, its managing director has said.

The company is part of the 106-year-old JM Baxi Group, which operates container terminals, container freight yards 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 (Sebi),” Dhruv 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 brownfield port projects it hopes to bid on as well as corporate 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. installation by constructing new terminals and other facilities. Out of the total pipeline of Rs 20,000 crore of projects, JM Baxi aims to tender for projects worth up to Rs 5,000 crore over the next few years.

These include projects at Tuticorin Port and Nhava Sheva or the Jawaharlal Nehru Port Trust. Kotak said the company is looking for acquisitions in the logistics space.

“Approaching the capital markets for funds is always needs-based. You have to need the capital for some specific function. And we need that capital to be able to try and capture some of these growth opportunities that we see ahead. us in our industry,” Kotak said.

“So whether it’s the national monetization pipeline, or the organic opportunities on the rail side, or the logistics side, I think we’re now at an inflection point where we see a lot of big opportunities in India. And obviously we’re in the process of bidding on a number of them. There are several acquisitions that we’ve made recently and a few more that we’d like to look at.”

“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 end-to-end supply chain requirements. And obviously, if we need capital, we have to exploit the market,” he added.

In March, JM Baxi acquired units of two logistics companies for Rs 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.

In April, it bought the remaining 26% of the Visakha Container Terminal in Vizag from DP World of Dubai. It now owns 100% of the terminal.

The company’s debt for FY22 is estimated to be around Rs 1,950 crore. Cash is around Rs 540 crore.


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