Thumping response from investors; CIAL collected Rs.478 Cr through the rights share issue

 Thumping response from investors; CIAL collected Rs.478 Cr through the rights share issue


Cochin International Airport Ltd (CIAL), the company which owns and operates the country’s first airport built under a public-private partnership has accorded
another thumping response from its huge investor base with the majority of them have opted for the rights issue plan offered by the company to mobilize resources
for infrastructure development. The whopping response from the investors has helped CIAL to collect Rs.478.21 Cr. which will be utilized for funding the already
announced projects including the expansion of the International Terminal; T3. Before the rights issue scheme has been announced, 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 for raising additional capital. The board of directors had earlier approved to issue 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 ( ie; one right share for the 4 existing
shares). 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. The state government is the largest investor in CIAL. It owns a 32.42% stake. The
government now invested Rs.178.09 crores in the rights share scheme and subscribed additional 3.56 crores shares. With this, the total share of the
government has increased to 33.38%.
CIAL has received a total of Rs. 564 crore from investors whereas 478.21 crore of which could be collected as per norms. The remaining Rs. 86 crore was returned
to the shareholders. 10.79% of the shares fell into the 'unsubscribed' category as only those holding a de-mat account are eligible for the right shares. 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). Since the Companies act-2013 mandated the use of demat account from the
prescribed time schedule, CIAL had requested the shareholders to dematerialize the shares way back in 2019 and many a time intimation about the process had
been sent officially to their registered contact tools. The number and percentage of shares held by all the investors of CIAL including the State Government has
increased proportionately after the right share was made available. In the last year and a half, CIAL has inaugurated three mega projects. These are
Payyannur and Aripara Power Projects and Business Jet Terminal. Managing Director S. Suhas IAS said that the fund received through the issuance of the
rights shares will be used for the projects which 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 ’’ Suhas added.
All the right shares issued have been credited to the Demat account of the shareholders as on 5th May 2023, Suhas informed.