Kamarajar Port Initiates Banker Selection for Rs 1200 Crore IPO

State-backed Kamarajar Port Ltd has initiated the process of appointing investment bankers to steer its planned initial public offering (IPO), which is expected to feature an offer for sale (OFS) of around ₹1,200 crore. A fresh issue component could also be evaluated and determined at a subsequent stage.

The Chennai Port Authority, which holds a 100% equity stake in Kamarajar Port, is looking to select up to three bookrunning lead managers to structure and manage the transaction. A pre-bid meeting has already taken place with prospective investment banking institutions, and formal pitching for the mandate is scheduled to unfold over the coming weeks.

Landmark Milestone for Public Maritime Infrastructure

If successfully completed, Kamarajar Port will become the first government-owned major port in India to list on domestic stock exchanges. Currently, the listed port and terminal operating segment on the NSE and BSE is dominated by private players:

• Adani Ports and Special Economic Zone Ltd (APSEZ)
• JSW Infrastructure Ltd
• Gujarat Pipavav Port Ltd (backed by APM Terminals)

The proposed listing follows in-principle clearance granted by the Union Ministry of Ports, Shipping and Waterways. While the IPO process remains in its preparatory stages and will require subsequent regulatory clearances from the Securities and Exchange Board of India (SEBI), officials estimate the execution timeline could span 12 to 15 months, pointing toward an issue launch by calendar year 2027.

Unique Corporate Structure

Unlike India's other 11 major ports that function as statutory administrative bodies governed by the Major Port Authorities Act, 2021, Kamarajar Port holds a unique corporate structure. Originally developed in 1999 as Ennore Port Ltd to shift thermal coal handling out of Chennai city, it is the country's only major port incorporated under the Companies Act.

In 2020, the Central Government executed a government-to-government disinvestment deal, selling its entire 67% stake in Kamarajar Port to Chennai Port Authority for ₹2,383 crore. This transaction converted Kamarajar Port into a wholly owned subsidiary of Chennai Port Authority.

The monetisation through the upcoming OFS is expected to help the parent Chennai Port Authority retire debt incurred during that 2020 stake buyout, including loans from the State Bank of India, as well as address long-term pension liabilities.

Operating and Financial Track Record

Kamarajar Port operates primarily on a landlord port model, partnering with private terminal concessionaires under public-private partnerships (PPP) on a build-operate-transfer (BOT) basis. Its facilities handle bulk coal, petroleum, oil and lubricants (POL), automobiles, and container cargo.

Key Performance Indicators:

• Traffic Volumes: The port handled 48.41 million tonnes of cargo in FY25, rising to a record throughput of 49.08 million tonnes across 1,008 vessel calls in FY26.
• Financial Profile: For FY25, Kamarajar Port recorded total revenues of ₹1,138.42 crore and a profit before tax of ₹837.54 crore.
• Valuation Benchmarks: Analysts and government estimates place the implied equity valuation of the company in the range of ₹15,000 crore to ₹21,000 crore, based on roughly 30 crore outstanding equity shares.

For Indian capital market participants, the listing offers an avenue to gain equity exposure to a high-margin, dividend-generating port asset that combines public ownership with corporate management discipline.

Tags: Kamarajar Port Ltd Chennai Port Authority Ministry of Ports Shipping and Waterways SEBI Adani Ports and Special Economic Zone JSW Infrastructure