Kamarajar Port invites bankers for Rs 1,200 crore IPO, set to become India’s only listed state-backed port

Kamarajar Port Ltd, the first corporate major port in India, is gearing up for an initial public offering, having started the process of appointing investment banks for an issue likely to include an offer for sale worth around Rs 1,200 crore. A successful listing would make Kamarajar the only listed state-backed port in the country.

The Chennai Port Authority, the sole owner of Kamarajar Port, is looking for up to three bookrunning lead managers to structure and manage the issue, with investment banks expected to start pitching for the mandate shortly. A pre-bid meeting has already been held with potential bankers to address queries regarding the upcoming IPO process. While valuation discussions are yet to begin, the IPO is likely to be completed by calendar year 2027.

The listing marks a landmark moment for India’s maritime sector. Located at Ennore near Chennai, Kamarajar Port operates as a corporate entity under the Companies Act, a structure that sets it apart from the other 11 major ports governed under the Major Port Authorities Act, 2021. This legal framework has allowed greater operational flexibility and made the listing proposal feasible. The port became a wholly owned subsidiary of the Chennai Port Authority in 2020, after the Centre transferred its 67% stake through a government-to-government transaction valued at Rs 2,383 crore.

The Ministry of Ports, Shipping and Waterways had earlier granted in-principle approval for the IPO, following which the company placed the listing proposal before its board and shareholders and assessed whether separate clearance from the Department of Investment and Public Asset Management was required.

Named after freedom fighter, social reformer and former Tamil Nadu Chief Minister K. Kamaraj, the company was originally set up as Ennore Port Ltd and renamed Kamarajar Port Ltd in 2014. The listing is being timed to coincide with the port’s silver jubilee year.

Financially, Kamarajar Port displays robust fundamentals ahead of its market debut. The port handled a record 49.08 million tonnes of cargo and 1,008 vessels in FY26, with revenue rising 9% to Rs 1,239 crore from Rs 1,138 crore in FY25. Based on an implied equity valuation range of Rs 500-700 per share and 30 crore outstanding shares, the company’s market capitalisation is estimated at Rs 15,000-21,000 crore, placing it in the mid-cap infrastructure segment.

The IPO push comes even as Kamarajar Port advances a separate Rs 4,288 crore expansion, having invited bids to develop a second container terminal under a public-private partnership on a Design, Build, Finance, Operate and Transfer basis, expected to add 2 million TEUs of annual capacity in two phases.