Kamarajar Port Initiates IPO Process With ₹1,200 Crore Share Sale Plan

Kamarajar Port Ltd, India's first corporate major port, has officially commenced the process of appointing investment banks to manage its upcoming initial public offering. The Chennai-based entity, which is wholly owned by the Chennai Port Authority, is seeking up to three bookrunning lead managers to structure the issue. According to internal documents, the proposed IPO is expected to feature an offer for sale valued at approximately ₹1,200 crore, with decisions regarding a potential fresh issue of shares deferred to a later stage.

If successful, the listing would mark a significant milestone for the Indian maritime sector, establishing Kamarajar Port as the country's only listed state-backed port. While India's public markets currently host three other port entities, including Adani Ports and Special Economic Zone Ltd, JSW Infrastructure Ltd, and the APM Terminals-backed Gujarat Pipavav Port Ltd, all are privately managed. Kamarajar Port occupies a unique position as the only major state-owned port incorporated under the Companies Act, whereas the other 11 major ports operate as statutory authorities under the Major Port Authorities Act, 2021.

Investment banks are slated to begin pitching for the mandate next week, following a pre-bid meeting held by the port to address potential queries. While specific valuation discussions remain pending, the company aims to complete the IPO process within the 2027 calendar year.

Originally developed as Ennore Port and later renamed after former Tamil Nadu chief minister Kumaraswami Kamaraj, the facility was conceived as a satellite to the Chennai Port to handle thermal coal. Its operational mandate has since expanded to include petroleum, oil, lubricants, automobiles, and containers, though coal remains its primary cargo. The port operates under a landlord model, utilizing build-operate-transfer agreements with private operators for terminal development.

Financial disclosures for fiscal year 2026 indicate a robust performance, with revenue rising 9% to ₹1,239 crore and profit increasing by over 10% to ₹596 crore. The company concluded the fiscal year with ₹186 crore in cash and cash equivalents against total assets of ₹4,492 crore. During the same period, the port handled 49.08 million tonnes of cargo and a record 1,008 vessels. The company has maintained a dividend policy, having paid an interim dividend of ₹3 per share and recommended a final dividend of ₹7 per share for FY26. The port's capital expenditure also saw a significant increase, more than doubling to ₹478 crore from ₹201 crore in the previous year.