The proposal for a stake sale in the Adani Group-owned Vizhinjam Seaport is learnt to have been forwarded to the Kerala State Law Department for legal vetting. After scrutiny, it will be examined by a high-level committee headed by the Chief Secretary, whose recommendations will be placed before the State Cabinet for a final decision.

The stake sale reports had triggered a political controversy after the Chief Minister VD Satheesan announced in the State Assembly that the Adani Group had not informed the government about the transaction. The Group is since learnt to have submitted a formal proposal to the Ports Department and Managing Director of Vizhinjam International Seaport Limited (VISL) as well.

Sources privy to latest developments says the transaction requires approval from the Kerala government under the concession agreement since the purchaser will acquire more than 25 per cent of the concessionaire’s equity. As the terminal has completed one year of commissioning in December 2025, Adani Vizhinjam Port Pvt Ltd (AVPPL) is eligible to sell 74 per cent of its stake. But it is now planning 49 per cent only, the sources said. 

Meanwhile, the Adani Group is reported to have intimated the Kerala government that proposed stake dilution in the Vizhinjam Seaport is a strategic partnership with the MSC Group to strengthen the State’s position on the global maritime map and to support its Mission Samudra initiative.

Sources said the collaboration with the MSC Group—the world’s largest transport and logistics conglomerate—for development and operation of Vizhinjam Port, reflects growing investor confidence in Kerala’s maritime sector. With MSC Group subsidiary TiL joining as a substantial minority shareholder, the port and the State are expected to benefit from increased business opportunities and global connectivity.

Since AVPPL is a listed company, it is mandatory not to disclose the developments before informing and getting approval from SEBI. Sources also added there is also a need to secure clearances from the Centre, including approvals related to foreign investment and security. The final agreement for the stake transaction will be executed only after all statutory approvals are obtained.

It is pointed out that similar collaborations already exist between the two groups. MSC Group holds a 49 per cent stake in Adani Ennore Container Terminal Private Limited, while MSC Group and APSEZ are equal partners in Adani International Container Terminal Private Limited, which operates a container terminal at Mundra.

The investments in the Phase I development of Vizhinjam Port is among the largest private sector investments in Kerala. The proposed Phase II expansion, estimated at ₹16,000 crore, is expected to become the largest-ever private sector investment in the State.

Published on July 2, 2026