The Ministry of Ports, Shipping and Waterways has granted “in-principle” approval for the proposed listing of state-run Kamarajar Port Ltd through an Initial Public Offering (IPO), marking a significant step toward unlocking value in one of India’s key maritime assets.
The approval, conveyed last week to Kamarajar Port Ltd, sets the stage for India’s only major port structured as a company to enter the capital markets. Kamarajar Port is a wholly owned subsidiary of Chennai Port Authority.
Process to Take 12–15 Months
Vijay Kumar, Secretary, Ministry of Ports, Shipping and Waterways, confirmed that the listing process has commenced and is expected to take about a year.
“The IPO plan is at a very nascent stage; typically, the process takes as much as 15 months,” a government official said.
The port management will now seek approvals from its board and shareholders before formally initiating the process. It will also assess whether approval from the Department of Investment and Public Asset Management (DIPAM) is required.
Officials said that draft Request for Proposal (RFP) documents are being prepared for the appointment of merchant bankers to manage the share sale. The RFP is expected to be finalised within a month, with bankers to be appointed following board and shareholder approvals.
Financial Performance and Valuation
Kamarajar Port delivered a strong financial performance in FY25:
Cargo handled: 48.41 million tonnes
Cargo handled (April–December FY25): 36.28 million tonnes
Revenue: ₹1,138.42 crore
Net profit before tax: ₹837.54 crore
Based on an implied equity valuation range of ₹500–700 per share and 30 crore outstanding shares, the port’s estimated market capitalisation could range between ₹15,000 crore and ₹21,000 crore.
Unique Position Among Major Ports
Kamarajar Port is the only state-owned port in India incorporated under the Companies Act. The other 11 major ports owned by the Union government operate as statutory authorities under the Major Port Authorities Act, 2021.
Originally established as Ennore Port Ltd, the port was renamed Kamarajar Port Ltd in 2014. It was initially conceived to handle thermal coal for the Tamil Nadu Electricity Board (TNEB), aiming to reduce pollution levels in Chennai by diverting so-called “dirty cargo” away from the city.
Over time, the scope of operations expanded significantly. Spread across approximately 2,000 acres, the port’s master plan includes 20 berths designed to handle bulk, liquid, automotive, and container cargo.
In 2020, the Government of India sold its 67 per cent stake in Kamarajar Port Ltd to Chennai Port Authority for ₹2,383 crore through a government-to-government disinvestment deal. Following the transaction, the port ceased to be a public sector undertaking and became a 100 per cent subsidiary of Chennai Port Authority.
Expanding the Listed Port Universe
Currently, India has only three listed port companies:
Adani Ports and Special Economic Zone Ltd (APSEZ)
JSW Infrastructure Ltd
Gujarat Pipavav Port Ltd
If the IPO proceeds as planned, Kamarajar Port will become the first government-owned major port to be listed, potentially broadening investor participation in India’s port and maritime infrastructure sector.
