Kamarajar Port Receives In-Principle Nod for IPO; Listing Process to Take About a Year

By Admin

12 Feb, 2026

India’s maritime sector is set for a landmark development as Kamarajar Port Ltd receives “in-principle” approval for an Initial Public Offering (IPO). The nod from the Ministry of Ports, Shipping and Waterways marks a significant move toward unlocking value in one of the country’s key maritime assets.

If the plan moves ahead as expected, Kamarajar Port will become the first government-owned major port in India to be listed on the stock exchanges.

In-Principle Approval Granted

The Ministry has formally communicated its approval to Kamarajar Port Ltd, setting the groundwork for the listing process.

Currently, Kamarajar Port is a wholly owned subsidiary of Chennai Port Authority and holds a unique position as India’s only major port incorporated under the Companies Act.

This approval signals the government’s intent to deepen capital market participation in the maritime sector while enhancing transparency and governance standards.

Listing Timeline: 12–15 Months

According to Vijay Kumar, Secretary, Ministry of Ports, Shipping and Waterways, the IPO process has begun but remains at a nascent stage.

Typically, the entire process may take 12 to 15 months, considering regulatory approvals, documentation, valuation exercises, and market conditions.

Key Steps Ahead:

• Board approval from Kamarajar Port
  
  

• Shareholder approval
  
  

• Assessment of whether clearance from DIPAM is required
  
  

• Preparation and finalisation of draft Request for Proposal (RFP)
  
  

• Appointment of merchant bankers
  
  

Officials have indicated that the RFP for merchant bankers is expected to be finalised within a month.

Strong Financial Performance in FY25

Kamarajar Port’s financial strength adds credibility to its IPO ambitions.

Operational Highlights:

• Cargo handled (FY25): 48.41 million tonnes
  
  

• Cargo handled (April–December FY25): 36.28 million tonnes
  
  

Financial Highlights:

• Revenue: ₹1,138.42 crore
  
  

• Net Profit Before Tax: ₹837.54 crore
  
  

These numbers underline the port’s operational efficiency and profitability, positioning it as an attractive infrastructure asset for investors.

Estimated Valuation and Market Capitalisation

Based on an implied equity valuation of ₹500–700 per share and approximately 30 crore outstanding shares, the port’s estimated market capitalisation could range between:

₹15,000 crore to ₹21,000 crore

Such a valuation would place it among India’s significant listed infrastructure players in the maritime domain.

A Unique Position Among Major Ports

Kamarajar Port stands apart from other major ports in India.

While 11 major ports operate as statutory authorities under the Major Port Authorities Act, 2021, Kamarajar Port is the only one incorporated under the Companies Act.

Originally established as Ennore Port Ltd, the port was renamed in 2014. It was initially developed to handle thermal coal for the Tamil Nadu Electricity Board (TNEB), helping reduce pollution levels in Chennai by shifting “dirty cargo” operations away from the city.

Today, the port spans nearly 2,000 acres and has a master plan that includes 20 berths, handling:

• Bulk cargo
  
  

• Liquid cargo
  
  

• Automobiles
  
  

• Containers
  
  

Ownership Structure and Strategic Shift

In 2020, the Government of India sold its 67% stake in Kamarajar Port Ltd to Chennai Port Authority for ₹2,383 crore through a government-to-government disinvestment deal.

Post-transaction:

• The port ceased to be a Public Sector Undertaking (PSU)
  
  

• It became a 100% subsidiary of Chennai Port Authority
  
  

This restructuring paved the way for more flexible corporate governance and potential capital market participation.

Expanding India’s Listed Port Universe

Currently, only three port companies in India are publicly listed:

1. Adani Ports and Special Economic Zone Ltd
   
   

2. JSW Infrastructure Ltd
   
   

3. Gujarat Pipavav Port Ltd
   
   

If the IPO materialises, Kamarajar Port will join this exclusive group — and notably, become the first government-owned major port to be listed.

What This Means for India’s Maritime Sector

The proposed IPO is more than just a financial event. It represents:

• Increased transparency and market discipline
  
  

• Broader investor participation in port infrastructure
  
  

• Potential benchmarking for other government-owned ports
  
  

• Strengthening India’s maritime infrastructure financing ecosystem
  
  

With robust financials, strategic location, and diversified cargo handling capabilities, Kamarajar Port’s listing could become a milestone in India’s port sector reforms.

As the 12–15 month journey unfolds, the maritime and investment communities will closely watch how India’s only corporatised major port navigates its transition into the capital markets.