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Kamarajar Port Ltd has received in-principle approval from the Ministry of Ports, Shipping and Waterways to proceed with an initial public offering, a move that could make it India�s first state-owned port company to be listed. The port, now fully owned by the Chennai Port Authority following a government stake transfer in 2020, will next seek board and shareholder approvals. With consistent cargo volumes and strong profitability, the port�s proposed listing may open a new route for capital access in the government-owned ports sector.
Kamarajar Port Ltd has taken a key step towards a public listing after receiving in-principle approval from the Ministry of Ports, Shipping and Waterways. The approval was conveyed to the port?s management in the past week and places the company on course to become the first state-run port in India to access capital markets through an IPO. Advertisement
Located at Ennore near Chennai, Kamarajar Port operates as a corporate entity under the Companies Act, a structure that sets it apart from other major ports governed under the Major Port Authorities Act, 2021. This legal framework has allowed greater operational flexibility and made the listing proposal feasible at this stage.
The port became a wholly owned subsidiary of the Chennai Port Authority in 2020 after the government transferred its 67 per cent stake through a government-to-government transaction valued at INR 2,383 crore. The transfer marked a shift in ownership and laid the foundation for future strategic decisions, including the proposed IPO.
Before moving ahead, Kamarajar Port will place the listing proposal before its board and shareholders for formal approval. The company is also assessing whether separate clearance from the Department of Investment and Public Asset Management is required. Following these steps, the port plans to invite bids to appoint investment bankers, a process expected to begin within the next couple of months.
The IPO process itself is still at an early stage. Officials indicate that completing regulatory procedures, documentation, and market preparation could take around a year, though timelines may extend depending on approvals and market conditions.
Operationally, Kamarajar Port has reported steady performance. In FY 2024?25, it handled 48.41 million tonnes of cargo, while cargo volumes stood at 36.28 million tonnes in the current financial year up to December. During FY 2024?25, the port posted a profit before tax of INR 837.54 crore on revenue of INR 1,138.42 crore.
Based on internal estimates, the port?s equity valuation is expected to range between INR 500 and INR 700 per share, with around 30 crore shares outstanding. This places the implied market capitalisation between INR 15,000 crore and INR 21,000 crore.
Originally incorporated as Ennore Port Ltd and renamed Kamarajar Port Ltd in 2014, the port has expanded its cargo profile over time. It now handles bulk, liquid, automobile, and container cargo across its nearly 2,000-acre land bank, moving beyond its initial focus on coal imports for power utilities.
Currently, India has only three listed port operators Adani Ports and Special Economic Zone Ltd, JSW Infrastructure Ltd, and Gujarat Pipavav Port Ltd. A successful listing of Kamarajar Port would add the first state-owned port entity to this list.
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