Ennore Port to approach Shipping Min for IPO nod

The Ennore Port will approach the Ministry of Shipping by the end of this month for approval of a plan to raise funds for business expansion through an IPO, a top government official said.

"Ennore Port may go for an IPO... They were asked to raise finances through this route, they would approach us... maybe in a month's time," a Shipping Ministry official said.

However, the percentage of disinvestment by the government and the amount of fresh equity to be raised through the IPO is yet to be decided.

The decision was taken at an Ennore Port board meeting last month.

The Centre holds a stake of about 68 per cent in the Ennore Port and the remaining 32 per cent is held by the Chennai Port Trust.

The Department of Disinvestment (DoD) had asked the Shipping Ministry to opt for an initial public offer rather than raise funds through private placement and the ministry informed the Ennore Port regarding the same.

The Ennore Port is the only corporatised major port and is registered as a company. The port has been able to attract an investment of Rs 2,600 crore by private entrepreneurs on various terminals and harbour craft.

Construction of a car export terminal at the Ennore Port is in progress, which Japanese car-maker Nissan Motors will use to export 1,80,000 cars per year once fully executed, though exports are expected to commence this month.

Construction of the terminal will cost Rs 110 crore and the facilities will include a berth, a 12-metre draft after dredging of the basin and a parking yard of 1,75,000 square metres.

A coal terminal and iron ore terminal are also being developed at a total investment of Rs 880 crore.