JSW Infra Block Deal: Sajjan Jindal Family Trust trims JSW Infra stake via Rs 1,239 crore block deal; stock slips 3%

JSW Infrastructure witnessed a major equity transaction on May 16 as 4.26 crore shares, or 2.03 per cent of the company’s equity, changed hands through a block deal worth Rs 1,239 crore. The shares were traded at Rs 290.6 apiece, only slightly above the floor price of Rs 288 set for the sale, and at a marginal discount to the previous day’s closing price. The development led to a 2 per cent decline in the stock during early trading hours.

Promoter group cuts stake to meet MPS norms

The Sajjan Jindal Family Trust—represented by trustees Sajjan Jindal and Sangita Jindal—initiated the sale. The trust held a dominant 80.72 per cent stake in JSW Infrastructure at the end of the March 2025 quarter. The block deal was a strategic move to comply with the Securities and Exchange Board of India’s (SEBI) minimum public shareholding (MPS) norms, which require promoters to gradually bring down their holdings to 75 per cent in listed entities.

Following the deal, a 60-day lock-in period has been imposed on the seller, during which no further shares can be offloaded. This clause aims to stabilise the stock and avoid further supply-led pressure in the near term. While the buyers have not been disclosed yet, market participants anticipate institutional interest given JSW Infra’s strong fundamentals.

Stock trades near floor price, slips on volumes

JSW Infra shares slipped over 2 per cent in early trade to hit an intraday low of Rs 288.1 before recovering slightly. The stock was last seen trading around Rs 290.85. So far in 2025, the stock has shed 8.5 per cent, underperforming key indices, though the company’s business performance remains resilient.

Analysts said the transaction was expected, as the company had disclosed on May 12 its intent to explore such a stake sale to improve float and align with listing regulations.

Financials remain solid despite promoter selling

Despite the stake dilution, JSW Infrastructure continues to post robust earnings. For the fourth quarter of FY25, the company reported a 57 per cent year-on-year rise in consolidated net profit at Rs 516 crore. Revenue increased 14 per cent to Rs 1,372 crore, while EBITDA rose 7 per cent to Rs 730 crore. Margins remained strong at 53.2 per cent.

For the full financial year, JSW Infra posted a 31 per cent rise in net profit at Rs 1,521 crore and a 20 per cent growth in revenue at Rs 4,829 crore. The company’s EBITDA came in at Rs 2,615 crore, with margins holding steady at 54.2 per cent.

Cargo volumes and third-party play a key role

JSW Infra’s operational performance is driven by steady cargo growth. The company handled 31.2 million tonnes of cargo in Q4 FY25, up 5 per cent year-on-year. Third-party cargo volumes grew 11 per cent and contributed 50 per cent to total cargo handled, compared to 47 per cent last year.

For the entire fiscal, cargo volumes increased 9 per cent to 117 million tonnes, with third-party volumes making up 49 per cent, a significant rise from 40 per cent in FY24. The company’s growing focus on third-party logistics is seen as a long-term driver for revenue diversification and margin protection.