Ennore Port (EPL) in Chennai, India, has received approval from its board of directors to go public.
The company will forward its proposal to the Disinvestment Commission for further clearance.
The port is seeking approval to raise INR5bn ($109.8m) from the IPO and divest up to 10% of its equity.
EPL may require INR8bn ($175.7m) to carry out infrastructure projects.
Union Minister for Shipping GK Vasan said EPL has 14 projects worth INR4.4bn ($1.42bn), which include dredging, the construction of terminals and developing rail and road connectivity.
The government has a 68% stake in Ennore Port and the remaining 32% of EPL is owned by the Chennai Port Trust.