KOCHI: The Kerala government has hiked its stake in Cochin International Airport Ltd (CIAL), India's first airport built under a public-private partnership, from 32.42% to 33.38% in the recently-concluded rights issue by the airport.
The rights issue, in the ratio of 1:4 (i.e., one right share for the 4 existing shares), was an overwhelming success with CIAL mobilising Rs 478.21 crore.
The funds will be utilised for funding CIAL's already announced projects, including the expansion of the International Terminal, T3, an official release said here.
The state government, the largest investor in CIAL, invested Rs 178.09 crore in the rights share and subscribed to an additional 3.56 crore shares (including an additional Rs 23 crore after buying a portion of the unallotted shares). This saw the Kerala government's stake going up to 33.38% from the earlier 32.42%.
Before the rights issue, CIAL’s total share volume was 380 million shares owned by 22,000 investors from 25 countries. Being an unlisted company, CIAL can issue rights shares under Section 62(1) of the Companies Act to raise additional capital.
The board of directors had earlier approved the issue of 9,56,43,687 equity shares at Rs 50 per equity share (including a premium of Rs 40 per share), aggregating to Rs 478,21,84,350 to the existing shareholders of the CIAL in the ratio 1:4. The majority of the shareholders applied and paid for the right shares, as they have shown great interest in the development projects that the management is currently implementing and intends to implement in the future.
CIAL has received a total of Rs 564 crore from investors, whereas Rs 478.21 crore will be collected as per norms. The remaining Rs 86 crore was returned to the shareholders after 10.79% of the shares fell into the 'unsubscribed' category, as only those holding a de-mat account are eligible for the right to share. Such shares were re-allotted to the existing eligible shareholders in proportion to their holdings as per the terms already announced. For this, the state government has provided an additional Rs 23 crore (included in the amount mentioned earlier).
With the Companies Act-2013 mandating the use of the Demat account from the prescribed schedule, CIAL requested the shareholders dematerialize the shares in 2019. The number and percentage of shares held by all the investors in CIAL, including the state government, increased proportionately after the right share was made available.
In the last year and a half, CIAL has inaugurated three mega projects-- Payyannur and Aripara Power Projects and the Business Jet Terminal.
The funds received through the issuance of the rights shares will be used for the projects that will be implemented soon. "CIAL has earmarked five big projects for the coming years. The main one is the expansion of International Terminal T-3; projects like constructing an export-cargo terminal and transit accommodation facility also need to be completed on time. The Hon'ble Chief Minister and the Board of Directors have prepared a clear outline for these projects ’’ said S Suhas managing director of CIAL. "All the right shares issued have been credited to the demat account of the shareholders as of May 5, 2023," he added.