Cochin airport to go for initial public offering

Cochin International Airport Ltd, the country's first public-private-partnership (PPP) airport, is all set to go for its maiden public issue with the meeting of the board of directors (BoD) approving a resolution mandated by the shareholders for the same.

The initial public offer (IPO) will be made after issuance of one crore shares at Rs 10 to Housing and Urban Development Corporation Ltd (HUDCO), as part of a pact reached towards settlement of outstanding dues.

After the the initial public offering, the shareholding of the government will come down from 33.33 per cent to 32.24 per cent, the government companies from 8.74 per cent to 8.46 per cent, nationalised and other banks from 5.91 per cent to 5.71 per cent, foreign holdings from 5.42 per cent to 5.24 per cent, and other corporate bodies from 8.57 per cent to 8.29 per cent.

At one crore shares, HUDCO's shareholding will stand at 3.37 per cent.

Earlier, the EGM meet chaired by the chief minister, Mr Oommen Chandy, passed a special resolution approving allotment of one crore equity shares at par value (Rs. 10) amounting to Rs10 crore on a preferential basis to HUDCO as an out-of-the-court settlement.

The rest of the dues will be paid out of the amount that the CIAL had deposited with the Debt Recovery Tribunal (DRT).

"The company is planning to venture into new sectors like renewable energy and infrastructure," he said.

Meanwhile, minority shareholders demanded rights issue at par during the EGM to which Mr Chandy assured them of "all action within the framework of law".

SOURCE