Jindal Infra hits new high

India’s second largest private commercial port operators, Sajjan Jindal led – Jindal Infrastructure acquired majority stake, 70.37% to be precise in Navkar Corporation (Listed on BSE & NSE) for Rs.1012 crore.

This is a win-win for Jindal as it aligns with its objective of foraying into logistics, offer improved port connectivity and provide long-term vision of building and scaling an efficient pan-India logistics network for last-mile connectivity. Further, it complements the growth strategy of increasing the company’s share of port-related container cargo.

And now to abide as per SEBI rules the company will soon have to make an open offer to the shareholders of Navkar.

Additionally, the company announced receipt of contract from Southern Railway, Chennai Division for construction & operation of Gati Shakti Multi-Modal Cargo Terminal (GCT) at Arakkonam, Chennai, Tamil Nadu.

The company will commence construction within three months of receiving approval of construction, and complete construction within 18 months of the grant of approval of construction of GCT. The Railway land shall be licensed for a period of 35 years.

The stock price is reacting very positively to these news, especially the takeover of Navkar. Opening over 5% higher at Rs.335.55, the stock surged to a new 52-week high at Rs.336 and is currently trading at Rs.328 levels.  Navkar rose almost 12% to Rs.124.79, which is just a tad away from its 52-week high of Rs.125.40.