The US based Eton Park Capital Management LP, a hedge fund led by Eric Mindich, a former Goldman Sachs Group Inc partner, has invested $125 million in JSW Infrastructure Ltd (JSW Ports), an unlisted subsidiary of Sajjan Jindal-led JSW group, for a 10% stake.
The money raised will be used for the expansion of its port business, NK Jain, Chairman of JSW Infrastructure told reporters in Mumbai.
JSW Ports operates ports at Dhabol (Maharashtra) and Goa while it developed and also operates Jaigarh Port where the company has a 50 year licence on a Build, Own, Operate, Share and Transfer (BOOST) basis. Phase 1 of the project has been commissioned and is operational.
Phase 2 of the project is expected to commence shortly. JSW Ports has been the operator of Terminals 5A and 6A at the port of Mormugao, Goa from September 2004 and has since handled more than 22 million tons of dry bulk cargo.
Additionally, JSW Ports is exploring various opportunities to develop ports and port-related infrastructure in various parts of the country in order to meet the cargo requirements of the JSW Group and external clients.
JSW Infrastructure is into the development of infrastructure for ports, airports, ship repair, shipyard, township, roads, rail connectivity, inland waterways, water treatment plant and pipelines.
JSW Group is one of the fastest growing business conglomerates with a strong presence in core economic sectors of India such as steel, energy and infrastructure. The Sajjan Jindal led enterprise has grown from a single steel rolling mill in the early 1980s to a multi-line business conglomerate worth approximately $5 billion within a short span of time.
India is likely to invest $1 trillion in the infrastructure sector in the next decade which will give a major impetus to the overall GDP growth of the country, he said.
“Generally Indian cargo growth is 1.2 times GDP. This investment by Eton Park will help us in achieving the vision of reaching 180 million MT of cargo handling capacity by 2020,” said Capt. BVJK Sharma, Joint Managing Director & CEO from JSWIL.
JM Financial was the exclusive financial advisor on the transaction.
Eton Park is a global, multi-disciplinary investment organization dedicated to delivering superior risk-adjusted returns over a multi-year period and has offices in New York, London and Hong Kong. Started in November 2004 with $3.5 billion, it invests in the public equity, fixed income, ADRs and alternative investment markets across the globe, and has currently $13 billion under management.
Some of its investments in India include JSW energy, GMR Infrastructure Ltd, Jai Corp Ltd, JM Financial and a 5% stake in Reliance Capital Asset Management, a unit of Reliance Capital, which it bought for close to Rs 500 crore.
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