Cochin International Airport Limited rights issue begins on July 24
The company hopes to raise Rs 382 crore through this process
KOCHI: Cochin International Airport Limited has decided to hold the issue of rights share of the company between July 24 and August 22 to its 18,000 shareholders.
It is learnt that the company has started intimating shareholders and is in the process of sending them the share application form.
In all, a total of 7.65 lakh equity shares at a proportion of one share per holding of four shares each will be given at a price of Rs 50 (issue price Rs 10 and Rs 40 as premium).
The company hopes to raise Rs 382 crore through this process. The State Government too will partake in the process and will chip in with Rs 138 crore.
The company has 9.4 crores of unsubscribed shares now. The total number of subscribed shares of CIAL stands at around 30.61 crore as on March 31, 2014.
CIAL which had an annual turnover of Rs 414 crore last year has so far distributed about 153 per cent of its share value. Having a face value of Rs 10 initially, the share value of CIAL went up since the operation of the airport in 1999. Now it stands about 20 times higher.
The company has also been able to successfully settle a long-standing debt-equity conversion dispute with Housing and Urban Development Corporation (Hudco).
CIAL will now be able to still the discordant notes among the rights holders on issuance of further shares by going in for this 4:1 rights share issue.