KOCHI: In a clear indication of its bullishness on Kochi airport’s prospects, the Kerala government has hiked its stake in Cochin International Airport Ltd (CIAL), India’s first airport built under a public-private partnership, by nearly 1 % from 32.42% to 33.38% after the recently concluded rights issue by the airport company.
The rights issue, in the ratio of 1:4 (ie., one right share for 4 existing shares), was an overwhelming success with CIAL mobilising Rs 478.21 crore, an official release said. The money will be utilised for funding CIAL’s already announced projects, including the expansion of the International Terminal, T3, it said.
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), thereby marginally hiking its stake in the airport company.
Before the rights issue, CIAL had a total of 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 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,” the release said.
CIAL has received a total of Rs 564 crore from investors, whereas Rs 478.21 crore will be collected as per norms.
Some shareholders, who do not hold the CIAL shares in demat account, were denied the rights issue, and this accounted for 10.79% (worth Rs 86 crore). Only those holding a de-mat account are eligible for the right issue. Such ‘ineligible’ shares were re-allotted to the existing eligible shareholders in proportion to their holdings as per the terms already announced, the release said.
CIAL said the funds received through the issuance of rights shares will be used for 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,” said S Suhas, managing director of CIAL.