Kamarajar Port Hires Banks for Initial Public Offering

Chennai-based Kamarajar Port has hired three investment banks to manage an initial public offering that will make it India's first listed state-backed port. The company picked SBI Capital Markets, IDBI Capital Markets and Securities, and ICICI Securities as book-running lead managers for the share sale. The public offer is likely to include an offer for sale of about 1,200 crore rupees, while a fresh issue of shares may be decided later. Valuation talks are still some time away, but the share sale is likely to be completed within calendar 2027. Chennai Port Authority, which wholly owns Kamarajar Port, began the process in September to seek up to three managers to structure the issue. Emails sent to the port and the three banks did not get a response by press time.

Background

Established in 1999 as Ennore Port, Kamarajar is one of India's 12 major ports and functions under the ministry of ports, shipping and waterways. It was later renamed after former Tamil Nadu chief minister Kumaraswami Kamaraj. Chennai Port Authority bought the central government's entire stake in 2020 to make Kamarajar its wholly owned subsidiary. Unlike other major state-owned ports that operate as statutory authorities, Kamarajar is incorporated under the Companies Act.

Financials

Kamarajar handled 49.08 million tonnes of cargo and a record 1,008 vessels in fiscal 2026. Net revenue rose 9 percent to 1,239 crore rupees in fiscal 2026 from 1,138 crore rupees a year earlier. Net profit increased by more than 10 percent to 596 crore rupees from 539 crore rupees. The company had 186 crore rupees in cash and cash equivalents at the end of fiscal 2026 against total assets of 4,492 crore rupees. Capital expenditure more than doubled to 478 crore rupees from 201 crore rupees a year earlier.

Context

State-backed ports in India are typically run directly as government statutory authorities rather than being listed on public stock exchanges. Bringing a state-owned port to the public markets through an initial public offering marks a major shift in how such public infrastructure assets raise capital. Existing listed port entities in India currently include private and joint-sector firms like Adani Ports, JSW Infrastructure, and Gujarat Pipavav Port.