Kamarajar Port IPO set for FY27, poised to become India’s first listed government-wwned port

By Admin

12 Jan, 2026

India is set to witness a landmark moment in its maritime and capital markets landscape with the proposed Initial Public Offering (IPO) of Kamarajar Port Ltd in FY27. Once listed, the port will become the first government-owned port in India to be traded on stock exchanges and only the fourth port company in the country to go public, marking a significant shift in how public infrastructure assets access capital markets.

A historic listing timed with a milestone year

Kamarajar Port Ltd, a wholly owned subsidiary of the Chennai Port Authority, is nearing the final stages of approval for its IPO, according to a government official familiar with the development. The timing of the listing is particularly symbolic, as it coincides with the port’s silver jubilee year, underlining 25 years of operational evolution and growth.

Named after freedom fighter, social reformer, and former Tamil Nadu Chief Minister K. Kamaraj, the port holds a unique position in India’s port ecosystem. Unlike the 11 other major Union government ports that operate as statutory authorities under the Major Port Authorities Act, 2021, Kamarajar Port is the only state-owned port incorporated under the Companies Act, giving it a distinctly corporate structure.

Strong operational and financial performance

Operationally, Kamarajar Port has demonstrated consistent performance. In FY25, it handled 48.41 million tonnes (mt) of cargo. During April–November of the current fiscal year, throughput stood at 31.96 mt, reflecting stability even amid volatility in global trade flows.

Financial fundamentals further strengthen its IPO case. The port reports a trailing twelve-month EPS of ₹18, EBITDA of ₹968 crore, and net debt of just ₹286 crore. These numbers highlight strong cash generation, operational efficiency, and a conservative balance sheet—key attributes for attracting long-term infrastructure investors.

Valuation points to a mid-cap infrastructure debut

Based on an implied equity valuation range of ₹500–700 per share and approximately 30 crore outstanding shares, Kamarajar Port’s estimated market capitalisation stands between ₹15,000 crore and ₹21,000 crore. This places it firmly in the mid-cap infrastructure segment.

Three valuation approaches have been used to triangulate fair value:
• P/E multiple method suggests ₹396–576 per share
• EV/EBITDA method indicates ₹442–797 per share
• PEG-based valuation points to ₹497–720 per share

Taken together, these converge around a fair value band of ₹500–700 per share, aligning closely with the government’s internal assessment.

A rare PSU with private-sector economics

According to officials, the IPO represents more than just a listing. For the government, it signals a structural shift—introducing market discipline, transparency, and investor scrutiny to a port that already operates under corporate law. For investors, it offers a rare proposition: a state-owned asset with private-sector-level margins, low leverage, and predictable cash flows.

As India’s port sector continues to modernise and deepen private participation, Kamarajar Port’s listing could set a powerful precedent. It may redefine how public infrastructure assets are valued and accessed through capital markets, potentially reshaping investor perception of PSU-led infrastructure in the years ahead.