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G.K. Nair

KOCHI, April 1

NOW that the Kerala Government has fulfilled its commitment to pay Rs 20.5 crore to keep its stake in Cochin International Airport Ltd (CIAL) at 26 per cent, five directors of the company are now planning to raise their equity also to 26 per cent.

``We are planning to invest Rs 30 crore by subscribing to the rights issue to raise our equity to 26 per cent,'' Mr C.V. Jacob, an industrialist and one of the directors, told Business Line on Monday.

He said a meeting would be held next week to finalise it. Four out of five are Gulf-based entreperenuers — Mr M.A. Yusuffali of Abu Dhabi, Mr P. Mohammadali of Oman, Mr N.V. George of Sharjah and Mr E.M. Babu of Dubai.

He said that UTI Bank, which had been entrusted to scout for suitable institutions for private placement of about 26 per cent of the equity, would be presenting its report probably early next week, he said.

The remaining part (22 per cent) of the equity would be mobilised through a rights issue from the other stakeholders, institutions such as SBT, Federal Bank, BPCL, Air India, and NRIs and the general public. The entire process of expansion of the equity base to Rs 200 crore was expected to be completed by April-end, Mr Jacob said.

This would enable the company to liquidate all its high-cost loans early this fiscal and post a positive balance sheet by the end of 2002-03, he claimed.

He said that to clear some part of the high-cost borrowings, the company was also negotiating with the Union Bank of India for a low cost loan and the latter's response was positive, he said.

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