Kochi: The Cochin International Airport Ltd (CIAL) has raised Rs 478.21 crore through the rights issue it had rolled out to mobilise resources for infrastructure development.

The company, which owns and operates the country’s first airport built under a public-private partnership, said a majority of its vast shareholder base opted for the rights issue plan, making it a success.

The sum raised through the scheme will be utilised for funding the already announced projects, including the expansion of the International Terminal; T3, the company said in a media statement on Tuesday.

Before the rights issue scheme was announced, CIAL’s total share volume was 38 crore 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 (including a premium of Rs 40 per 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 state government is the largest investor in CIAL. It owns a 32.42% stake. The government now invested Rs 178.09 crore in the rights share scheme 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 Rs 564 crore from investors whereas 478.21 crore of which could be collected as per norms. The remaining Rs 86 crore was returned to the shareholders. As much as 10.79 per cent of the shares fell into the 'unsubscribed' category as only those holding a demat 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),” the statement said.

In the last year and a half, CIAL has inaugurated three mega projects – Payyannur and Aripara Power Projects and Business Jet Terminal. CIAL Managing Director S Suhas IAS said that the fund received through the issue of the rights shares will be used for the projects which will be implemented soon. “CIAL has earmarked five big projects for the coming years. The main 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. The chief minister and the Board of Directors have prepared a clear outline for these projects ’’ Suhas said.

All the right shares issued have been credited to the Demat account of the shareholders as on May 5, 2023, Suhas said.

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