Anil, Mukesh eye Cochin Airport stake

CIAL rights issue to commence in April

BY A CORRESPONDENT
February 16, 2006

The rights issue process of the Cochin International Airport Ltd (CIAL) will commence in April. The final decision regarding this is expected to be taken by the special general body meeting to be held on April 8.

Last month's CIAL board meeting had decided to increase the recognised capital to Rs 400 crores from the present Rs 200 crores. Shares worth Rs 148 crores will be distributed to the 13,000 shareholders. It has decided to sell the remaining shares worth Rs 52 crores in the market.

It is expected to complete the distribution of the right issues within three months. Some leading firms have reportedly initiated moves to buy shares of CIAL in bulk. GMR, which got the contract for the modernisation of Delhi airport and the Anil Ambani & Mukesh Ambani groups are believed to be in the race.

It is said that the development projects worth Rs 3,500 crores initiated by CIAL have attracted the leading industrialists. At present, four NRIs hold 36% stake in CIAL.

Sources say that two of them are planning to sell their shares. The state government have a stake of 26% in this international airport. Some of the major shareholders of CIAL are Air India, State Bank of Travancore, Federal Bank and Bharat Petroleum.