CIAL collects Rs 478.21 crore through rights share issue, Infra News, ET Infra

[ad_1]

KOCHI: Cochin International Airport Limited, the company which owns and operates the country’s first airport built under a public-private partnership, collected Rs.478.21 crore from its investors through the rights share issue.

CIAL authorities said that they received good response from the investors as majority of them have opted for the rights issue plan offered by the company to mobilize resources for infrastructure development.

Before the rights issue scheme was 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, 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 showing interest in the development projects.

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 only Rs.478.21 crore could be collected as per norms. The remaining Rs. 86 crore was returned to the shareholders. All the right shares issued have been credited to the Demat account of the shareholders as on May 5, 2023.

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.

CIAL managing director S Suhas said that the fund received through the issuance of the rights shares will be utilized for funding the projects including the expansion of the International Terminal (T3), construction of an export cargo terminal and transit accommodation facility.