Financial Daily from THE HINDU group of publications
Tuesday, Sep 14, 2004
Financial Daily from THE HINDU group of publications Tuesday, Sep 14, 2004 |
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Corporate
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Rights Issue CIAL to allot Rs 35-cr shares as rights issue G.K. Nair
Kochi , Sept. 13 COCHIN International Airport Ltd (CIAL), the promoter and operator of the first-ever international airport in the country at nearby Nedumbassery, is to allot shares worth Rs 35 crore to its around 10,000 shareholders as rights issue. A sub-committee constituted by the company's board of directors during its meeting held here on September 10 would be submitting its recommendations on these lines to the board soon, Mr C.V. Jacob, Chairman of the Sub Committee, told Business Line on Monday. The rights issue would be available soon to its shareholders at 3:1, he said. The shares aggregating Rs 52 crore have become available for allotment following the board's decision last week. The company had been keeping the shares for long to be converted in to equity of the Housing and Urban Development Corporation (Hudco), and repay Rs 52 crore to the corporation, he said. Under a one-time settlement, CIAL had repaid Rs 120 crore to Hudco out of the total outstanding dues amounting to Rs 172 crore and set aside Rs 52 crore for converting in to its equity. The company's decision to enhance its capital base to Rs 200 crore had been pending for about two years for want of a positive response from the Hudco, he said. He said that the sub-committee would also recommend to the board to set aside the remaining shares worth Rs 17 crore for a public issue after two or three years. After the completion of the rights issue, the paid-up capital of the company would go up to Rs 183 crore against the authorised capital of Rs 200 crore, he said. The company is in the process of raising Rs 52 crore as loan at 6 per cent interest from a bank for settling the outstanding dues of the Hudco, Mr Jacob said. CIAL had been in the red ever since it was commissioned in June 1999. The company had for the first time posted a net profit of Rs 12.54 crore in 2002-03 and that had gone up to Rs 22.11 crore last fiscal. He said that the dividend of eight per cent would be disbursed this month. The airport has been developed in the private sector at a total cost of Rs 230 crore financed by an equity of Rs 90 crore and term loan of Rs 140 crore, mainly from Hudco. The major stake holders in the company is the State Government and the state public sector undertakings with 26 per cent and the rest is held by State Bank of Travancore, Federal Bank, BPCL, Air India, NRIs and the public.
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