Cochin airport to go public in 6 months

Cochin International Airport Ltd, the first greenfield airport in the private sector in India, plans to hit the capital market with an initial public offer in six months.

V J Kurien, CIAL managing director confirmed that the airport entity is exploring the option of IPO but declined divulge details. "I cannot comment on the proposed IPO as it at a very premature stage. Our board will soon take a final decision on this matter," Kurien said.

Sources said CIAL was likely to divest 26 per cent through proposed the IPO. They added that the CIAL board would meet early January to take final decision on the size of the issue.

The paid-up equity of the company, which was formed by the state of Kerala, non-resident Indians, financial institutions, air passengers and airport service providers, is Rs 148 crore (Rs 1.48 billion). It posted a turnover of over Rs 100 crore (Rs 1 billion) last year.

Kerala government is the single largest shareholder with a 26 per cent stake. The balance is held by NRIs from 30 countries, Federal Bank, State Bank of Travancore, Bharat Petroleum, Air India and Housing and Urban Development Corporation.

Air India is in charge of the ground handling operations at the airport, which is suitable for operations of wide bodied Boeing - 747 type of aircraft.

The airport has been planned in phases on a modular basis, to suit future requirements and also to minimize the initial investments so as to generate revenue at the earliest possible time.