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The government is preparing to launch an Initial Public Offering of Kamarajar Port Ltd, which will be the first public listing of a state-owned port in India. The proposed IPO is expected in the next financial year and could value the port between INR 15,000 crore and INR 21,000 crore, based on indicative pricing discussions. Kamarajar Port's corporate structure, steady cargo volumes and strong operating margins set it apart from other major ports. The listing is aimed at unlocking value and introducing market discipline in port operations.
The government has taken concrete steps towards listing Kamarajar Port Ltd through an Initial Public Offering, marking a first for India's state-owned port sector. The IPO is expected to be launched in the coming financial year, subject to market conditions and regulatory approvals. Officials involved in the process indicated that this move aligns with the Centre's broader strategy to monetise mature infrastructure assets while retaining public ownership. Advertisement
The proposed offering is expected to be priced in the range of INR 500 to INR 700 per share. With nearly 30 crore shares outstanding, the implied valuation of the port is estimated at around INR 15,000 crore to INR 21,000 crore. This would place Kamarajar Port among mid-sized listed infrastructure companies and make it the first government-owned port to be accessed by public investors.
Kamarajar Port has demonstrated consistent cargo handling performance. It handled about 48.41 million tonnes of cargo in the last completed financial year and around 31.96 million tonnes during the first part of the current year. Despite fluctuations in global trade and commodity movement, the port has maintained stable throughput, supported by diversified cargo and long-term user agreements.
A key differentiator for Kamarajar Port is its corporate structure. Unlike the other 11 major ports that function as statutory bodies under the Major Port Authorities Act, Kamarajar Port is incorporated under the Companies Act. Originally established as Ennore Port Ltd, it was renamed in 2014 and later became a wholly owned subsidiary of Chennai Port Authority after the Centre transferred its stake in a government-to-government transaction valued at INR 2,383 crore.
Financially, the port has reported strong operating efficiency. Its EBITDA margins are higher than several listed private port operators, supported by a landlord port model that keeps operating costs relatively low. The port's balance sheet reflects healthy cash generation and limited debt, which has strengthened its investment appeal ahead of the proposed listing.
Located close to Chennai, Kamarajar Port plays a strategic role in handling coal, automobiles, containers and liquid cargo for southern India. Its proximity to Chennai Port also allows operational synergies, contributing to overall cargo movement in the region.
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