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CIAL generates Rs 478 crore via rights issue to fund infrastructure ventures.

Cochin International Airport Ltd (CIAL) has successfully raised Rs 478.21 crore through its rights issue, which was launched to generate funds for infrastructure development. The airport is the country’s first to be built under a public-private partnership. The funds raised will be used to finance previously announced projects, including the expansion of the International Terminal, T3. CIAL’s total share volume prior to the rights issue was 38 crore shares held by 22,000 investors from 25 countries. The board of directors had approved the issuance of 9,56,43,687 equity shares at Rs 50 per equity share to the existing shareholders of CIAL in the ratio of 1:4.

The state government is the largest investor in CIAL, holding a 32.42% stake. The government invested Rs 178.09 crore in the rights share scheme, subscribing for an additional 3.56 crore shares. The total government share now stands at 33.38%. CIAL has received a total of Rs 564 crore from investors, with Rs 478.21 crore collected as per norms. The remaining Rs 86 crore was returned to shareholders.

CIAL has recently inaugurated three mega projects, including Payyannur and Aripara Power Projects, and a Business Jet Terminal. The funds received through the issuance of rights shares will be used for upcoming projects such as the expansion of International Terminal T-3, constructing an export cargo terminal, and transit accommodation facilities. According to CIAL Managing Director S Suhas IAS, the chief minister and board of directors have prepared a clear outline for these projects. Suhas confirmed that all the right shares issued had been credited to shareholders’ Demat accounts by May 5, 2023.

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