CIAL to float Rs 2,500 crore IPO

New Delhi: Cochin International Airport Limited (CIAL), the consortium that runs the Kochi international airport, plans to raise Rs 2,500 crore through an initial public offer slated anytime between April and December 2009.
The IPO, which will divest 26 per cent of CIAL’s equity, will finance an aerotropolis, a maintenance, repair and overhaul (MRO) unit, and an aviation academy in the vicinity of the airport.
“Of the 26 per cent, 20 per cent will be for the public and 6 per cent will be given as employee stock options,” said S Bharat, managing director, CIAL.
CIAL is planning a tie-up with two international airport developers to finance its projects, ahead of the public offer. The consortium will include a technical partner and a financial investor and will be in place by May this year, according to company executives.
CIAL intends to have a five-star hotel, two budget hotels, a convention centre, an amusement park and a cultural park as part of its aerotropolis that will come up over 500 acres, while the MRO is slated across 40 acres.
20/03/08 Anirban Chowdhury/Business Standard

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Categories: Airports Mar 2008, New Mar 2008