CIAL to issue rights shares from July 24 onwards

The issue of rights shares for the 18,000-odd shareholders of the Cochin International Airport Limited will be held between July 24 and August 22.

According to officials, the airport company has already begun despatching the letter of offer and share application form to the shareholders, settled in about 30 countries. “The proposal is to allot 7.65 lakh equity shares at a proportion of 4:1 (one share per holding of four shares) and at a price of Rs.50 (issue price at 10 and 40 rupees as premium) and raise an amount aggregating to Rs. 382.65 crore,” they said.

The State government, which holds about 32 per cent stake in the company, is slated to make a contribution of Rs.138 crore towards the rights issue. The total number of subscribed shares of the CIAL stands around 30.61 crore as on March 31, 2014.

A formal decision with regard to the rights issue was taken during the 20{+t}{+h} annual general meeting of the company held last year in Kochi. The company has 9.4 crores of unsubscribed shares after it settled the debt-equity conversion dispute with the Housing and Urban Development Corporation (Hudco) two years ago.

 The company, which clocked an annual turnover of RS. 414 crore in the previous fiscal has so far distributed about 153 per cent of its share value over the past 12 years.

 Issued at a face value of Rs.10, the share value of CIAL has been on an upswing since 1999, when the airport became operational and stands about 20 times higher. The airport company could return double the amount of Rs. 2,500 it had received in 1994 from each of the individual investors in the form of deposits received under the Kisan Vikas Pathra scheme. During the period, the shareholders were also allotted 250 shares at a price of Rs. 10 each.

 Further, with the two rights issue at par (1:1) in 2000 and 2006, the shareholders of the company were also provided with the opportunity to increase their holdings to 1,000.  

The State government, which holds about

32 per cent stake in the company, is slated

to make a contribution of Rs.138 crore towards the rights issue.