Board approves sale of liquid storage tank and rail logistics businesses for INR 1,154 Crores to KKR-backed buyer

Board approved sale of the liquid storage tank (LST) business at JNPT, Cochin and Goa on a slump sale basis, plus the Daund rail logistics business (via subsidiary ILSL), to Cisternina Logistics Private Limited.

Tue 29 Sep 2026

Aggregate Consideration

INR 1,154 Crores

LST Business Revenue Contribution

INR 1,616.52 million (39.29% of consolidated revenue)

LST Business Net Worth Contribution

INR 2,577.90 million (41.72% of consolidated net worth)

Rail Logistics Revenue Contribution

INR 276.70 million (6.73% of consolidated revenue)

Rail Logistics Net Worth Contribution

INR 196.32 million (3.18% of consolidated net worth)

What was approved

The Board, based on the Audit Committee's recommendation, approved a two-part transaction at its meeting held on September 29, 2026.

• Sale of the liquid storage tank business at JNPT, Cochin and Goa terminals (LST Undertaking) as a going concern on a slump sale basis under a Business Transfer Agreement to Cisternina Logistics Private Limited (CLPL).
• Transfer of the rail logistics business at Daund, currently under material subsidiary Infrastructure Logistic Systems Limited (ILSL), to ILSL Rail Logistics Private Limited (a wholly owned subsidiary of ILSL), and thereafter transfer of ILSL's entire shareholding in that subsidiary to CLPL.

CLPL is engaged in bulk liquid and gas storage and logistics in India, and is an entity in which an entity owned by funds and vehicles managed and advised by Kohlberg Kravis Roberts (KKR) has entered into definitive documents to invest. The buyer is not part of the promoter or promoter group.

Consideration

Aggregate consideration is INR 1,154 Crores (INR 1154,00,00,000), which may be adjusted or increased based on conditions and milestones set out in the definitive documents.

What is being sold, in size terms (FY ended 31st March, 2026, consolidated)

• LST Undertaking revenue: INR 1,616.52 million, being 39.29% of revenue
• LST Undertaking net worth: INR 2,577.90 million, being 41.72%
• Rail Logistics Undertaking revenue: INR 276.70 million, being 6.73%
• Rail Logistics Undertaking net worth: INR 196.32 million, being 3.18%

The Company states it is engaged in various business activities including the LST business, chemical manufacturing and EPC services.

Approvals and timeline

Definitive documents were executed on September 29, 2026. Completion is subject to conditions precedent, including shareholder approval and approvals from regulatory authorities. The transactions fall within Section 180(1)(a) of the Companies Act, 2013 and Regulation 37A of the Listing Regulations, and shareholder approval will be sought through a postal ballot, with disclosures in the explanatory statement.

Related party angle

The sale of the Rail Logistics Undertaking by ILSL to its wholly owned subsidiary on a slump sale basis is a related party transaction done on an arm's length basis. The sale of the LST Undertaking to the buyer, and the sale of shareholding by ILSL to the buyer, are not related party transactions.

How investors may read it

Management's stated rationale is that the sale will unlock significant value for stakeholders. The perception is of a large cash-generating divestment relative to the Company's size, since the two units together accounted for a meaningful share of consolidated revenue and net worth. Against that, the transaction removes these businesses from the Company's future revenue base, and it is not yet complete — shareholder and regulatory approvals remain pending, and the consideration itself is subject to adjustment. The Board meeting commenced at 5:15 PM and concluded at 6:00 PM.

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