Centre Approves In-Principle Listing of Kamarajar Port, First for a State-Run Port.

The Ministry of Ports, Shipping and Waterways has granted “in-principle” approval for the Initial Public Offering (IPO) of Kamarajar Port Ltd, a wholly owned subsidiary of the Chennai Port Authority. This marks the first time a state-run port in India is set to be listed.

The approval, conveyed in writing last week, allows Kamarajar Port, India’s only major port among the dozen owned by the Union government that operates as a company, to move forward with the IPO process. The port management will now seek board and shareholders’ approval and determine whether clearance from the Department of Investment and Public Asset Management (DIPAM) is required.

“That process is on; it will take about a year,” Vijay Kumar, Secretary of the Ministry of Ports, Shipping and Waterways, told ET Infra on February 6. A government official added, “The IPO plan is at a very nascent stage; typically, the process takes as much as 15 months.”

Kamarajar Port’s management is currently drafting the request for proposal (RFP) to hire bankers for the share sale, which is expected to be finalised within a month. Bankers will be appointed after board and shareholder approval.

The port became a 100% subsidiary of the Chennai Port Authority in 2020, following a government-to-government disinvestment deal in which the Centre sold its 67% stake for ₹2,383 crore.

In FY25, Kamarajar Port handled 48.41 million tonnes of cargo, and between April and December of the current fiscal, it handled 36.28 mt. It reported a net profit before tax of ₹837.54 crore on revenue of ₹1,138.42 crore in FY25. Based on an implied equity valuation of ₹500–700 per share and 30 crore outstanding shares, its market capitalisation is estimated at ₹15,000–21,000 crore.

Kamarajar Port, originally established as Ennore Port Ltd and renamed in 2014, is India’s only state-owned port set up under the Companies Act. The other 11 major government-owned ports operate under the Major Port Authorities Act, 2021. Initially designed to handle thermal coal for the Tamil Nadu Electricity Board, the port now handles a wide range of bulk, liquid, automotive, and container cargo across its 2,000-acre facility and plans 20 berths under its master plan.

Currently, India has three listed port companies: Adani Ports and Special Economic Zone Ltd (APSEZ), JSW Infrastructure Ltd, and Gujarat Pipavav Port Ltd, which is 43.01% owned by A P M Terminals Management B V of Denmark’s A P Moller-Maersk.

This IPO is expected to make Kamarajar Port the first state-run port in India to go public, reflecting growing government efforts to unlock value from its assets while enhancing transparency and capital access.