The Indian government-backed National Investment and Infrastructure Fund will invest Rs 2,250 crore (about $300 million) in a local unit of DP World, expanding their partnership that began in 2018.
NIIF, via its Master Fund, will pick up a stake of 22.5% in Hindustan Ports Pvt. Ltd, a wholly owned subsidiary of DP World, the companies said.
This is the Master Fund’s single largest investment and increases NIIF’s investment under its partnership with DP World to about $500 million. The transaction is likely to close by the first quarter of 2023.
The move comes barely weeks after Canadian pension fund CDPQ agreed to invest $5 billion in DP World’s three UAE facilities, including the Jebel Ali port, through a new joint venture in which it will pick up a 22% stake.
Hindustan Ports is one of India’s top container terminal platforms. It operates five container terminals managing more than 5 million TEU of capacity and has a national market share of over 20%. The terminals are located in Mumbai, Mundra, Chennai and Cochin.
The new investment extends the existing DP World and NIIF partnership, formed through the creation of Hindustan Infralog Pvt. Ltd in 2018. Since its inception, Hindustan Infralog has invested in rail logistics, multi-modal logistics parks, container freight stations, economic zones, cold chain infrastructure and contract logistics to create an integrated logistics platform.
The companies said that the primary capital raised through this transaction will help Hindustan Ports develop new infrastructure, drive supply chain efficiencies and support future growth initiatives.
“The investment will enable NIIF’s domestic and international investors to have a meaningful exposure in the sector through a unique and scalable platform with a significant presence across sea-based container terminals and land-based container logistics infrastructure,” said Sujoy Bose, Managing Director and CEO, NIIF.