Kamarajar Port Initiates Banker Selection for Rs 1,200 Crore IPO to Become India's Only Listed State-Backed Port

Kamarajar Port Ltd, India’s first corporate major port, has initiated the formal process to appoint investment bankers for an Initial Public Offering (IPO) anticipated to include an Offer for Sale (OFS) worth around Rs 1,200 crore. Once completed, the move will establish the Chennai-based port as the only government-backed port listed on Indian stock exchanges.

The Chennai Port Authority, which holds 100% of Kamarajar Port, is seeking up to three bookrunning lead managers to manage and structure the public issue. A pre-bid meeting has already taken place with prospective investment banks, with formal pitching rounds underway and market completion targeted within calendar 2027.

Expanding the Port Basket on Dalal Street

At present, public market investors on Indian bourses have exposure to only three listed port operating entities: Adani Ports and Special Economic Zone Ltd (APSEZ), JSW Infrastructure Ltd, and APM Terminals-backed Gujarat Pipavav Port Ltd. The listing of Kamarajar Port will bring a fourth player into the space and offer the market its first public-sector port asset.

Originally developed as Ennore Port near Chennai and later renamed after former Tamil Nadu Chief Minister K. Kamaraj, the facility is governed under the Companies Act rather than an operating trust framework. In 2020, the Union government sold its 67% stake in the entity to Chennai Port Authority for Rs 2,383 crore, transforming it into a wholly owned subsidiary of Chennai Port.

The Ministry of Ports, Shipping and Waterways previously granted in-principle approval for the public issue, paving the way for the monetisation process. Proceeds from the divestment will help Chennai Port Authority service debt obligations and bridge pension fund deficits.

Operational and Financial Footprint

Kamarajar Port enters the IPO preparation phase on the back of strong operational growth and steady profitability. In fiscal year 2026 (FY26), the facility registered a significant uptick across major business metrics:

• Cargo Throughput: The port handled 49.08 million tonnes of cargo and received a record 1,008 vessels during FY26.
• Revenue: Operating top line grew 9% year-on-year to Rs 1,239 crore, up from Rs 1,138 crore in FY25.
• Net Profit: Profit increased more than 10% to Rs 596 crore compared to Rs 539 crore in the preceding fiscal.
• Dividends and Balance Sheet: The port rewarded its parent entity with an interim dividend of Rs 3 per share and recommended a final dividend of Rs 7 per share for FY26. It held cash and cash equivalents of Rs 186 crore against total assets of Rs 4,492 crore and current liabilities of Rs 244 crore.
• Capital Outlay: Capex more than doubled during the year to Rs 478 crore from Rs 201 crore in FY25, highlighting continuing investments in capacity augmentation and berth infrastructure.

Market Implications for Investors

Key Takeaways for Port and Infrastructure Investors:

• Valuation Benchmarking: Kamarajar Port operates on corporate parameters with high operating margins, offering institutional and retail investors a direct benchmark against private peers such as JSW Infrastructure and Adani Ports.
• Fresh Issue Optionality: While the baseline offering is pegged as a Rs 1,200 crore OFS, the port authority retains the option to evaluate a fresh issue component depending on forward capital requirements.
• PSU Divestment Pipeline: The transaction marks an important milestone in the government's broader strategy to bring corporate discipline, governance transparency, and market pricing to state-owned infrastructure utilities.

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