The Hindu Business Line : CIAL board okays maiden public issue

THE board of directors of Cochin International Airport Ltd (CIAL) has approved its maiden public issue, which is slated to hit the market early next year. The airport plans to raise Rs 51 crore from the market: Rs 25 crore from public issue and the remaining through rights issue.

"We are at a very preliminary stage of the issue and the first task will be to identify the consultants, registrars and bankers to the issue," Mr V.J. Kurian, Managing Director of CIAL, told Business Line.

Infrastructure companies need to issue only 10 per cent of their capital base to the pubic for listing in the stock markets. The board has also decided on a 10 per cent dividend, up two per cent from last year, which will involve a cash outflow of Rs 17 crore.

The company has plans for a 6:1 rights issue, which will be issued at the face value. According to some of the consultants, the shares can command a substantial premium. The overwhelming success of the Jet Airways public issue has given greater heart to the company, Mr Kurian said.

In lieu of the outstanding Rs 55 crore owed to HUDCO, the board has also approved allocation of shares worth Rs 8.67 crore.

For the first time, the company's turnover had crossed Rs 100 crore in 2004-05 and its profit before tax rose to Rs 48 crore, wiping out all its accumulated losses. The net profit has grown to Rs 28 crore.

The company now has a paid-up capital of Rs 149 crore. The authorised capital of the airport is Rs 200 crore and through this rights/public issue, the total authorised capital will be subscribed.

At present, the Government of Kerala holds 32 per cent of the equity, while NRIs and promoters hold another 32 per cent.

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