Cochin International Airport Ltd has garnered ₹478 crore through rights issue aimed at mobilising resources for infrastructure development including the expansion of T3 international terminal.

Before the rights issue 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 ₹50 per equity share (including a premium of ₹40 per share) aggregating to ₹478,21,84,350 to the existing shareholders of the CIAL in the ratio 1:4 ( ie; one right share for four existing shares).

Five mega projects

S.Suhas, Managing Director, CIAL said the fund raised through rights issue will be used for the projects which will be implemented soon. The company has earmarked five big projects and the major 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.

Last year, CIAL has inaugurated three mega projects which are Payyannur and Aripara Power Projects and Business Jet Terminal, he said.  

Kerala Government is the largest investor in CIAL, owning 32.42 per cent stake. The Government now invested ₹178.09 crore in the rights issue and subscribed additional 3.56 crore shares. With this, the total share of the Government has increased to 33.38 per cent.

CIAL has received a total of ₹564 crore from investors whereas ₹478.21 crore of which could be collected as per norms. The remaining ₹86 crore was returned to the shareholders.