KOCHI: In a move seen as the Kerala government’s plan to increase its stake in Cochin International Airport Ltd (CIAL), which manages the Kochi airport, the annual general meeting of the firm on September 26 will seek the shareholders’ approval to hike CIAL’s authorised share capital from Rs 400 crore to Rs 500 crore.
This would be done through a rights issue of one share for every four shares held by a shareholder.
The increase in authorised share capital is expected to increase Kerala government’s stake in CIAL from the current 32.43%.
“Shareholders will be offered one extra share for every four shares of CIAL they hold. It is up to them to decide whether or not to buy the extra share(s). Shares not purchased by stakeholders will be bought by the Kerala government,” said a board member of CIAL.
It is learnt that there will be a premium on the Rs 10 face-value shares of CIAL. The board member said the shares will likely be priced at Rs 50 each.
State’s move comes amid pvt takeover of airports
The government’s move to consolidate its stake in CIAL, considered one of the most profitable airports in the country, comes at a time when biggies like the Adani Group are acquiring airports across the country. The group is currently managing six airports in India, including Thiruvananthapuram airport.
As per the notice issued to shareholders for the AGM, an increase of Rs 100-crore equity shares will be given to existing shareholders of CIAL. The decision has been taken to support the firm’s plans for growth. A CIAL spokesman said, “Our paid-up capital is Rs 482 crore as of now.
As a matter of caution, a provision is included to add more shares (Rs 18 cr) issued either to present shareholders or to the government. This doesn’t mean that we are issuing the shares right now. It’s just a precautionary step.”
Some of the biggest stakeholders in CIAL are NRI billionaire Yusuf fali M A (9.74%), Kochi-based Synthite Industries (6.53%), BPCL (3.43%), Housing and Urban Development Corporation (3.285%), Air India/ Tata Group (3.267%) and Stat e Bank of Indi a (3.267%).