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By John Mary
Thiruvananthapuram: The director board of Kannur International Airport Ltd (KIAL) has proposed the allocation of shares to the public, pegging a minimum of 2001 shares, with a face value of Rs100, per individual applicant.
C P Narayanan, political secretary to Kerala Chief Minister V S Achuthanandan, said each applicant should apply for a minimum of 2001 shares. Investors, individuals or groups could apply for any number of shares.
But the offer of bulk subscription would have to wait till January 31, the deadline for receiving of interests (EoI).
The total project cost for the proposed airport has been estimated at Rs10bn by the consultant, EMA Unihorn India Pvt Ltd, spread over a period up to 2034. Out of this the total equity would be Rs5bn and the debt Rs5bn.
The state government’s stake is limited to 26 percent, leaving 25 percent to public sector enterprises and 49 percent. On offer to the public would be roughly Rs2.5bn worth of shares. “We are receiving a lot of EoIs and a clear pattern of shareholding would be available only after the closure of EoI. Remaining shares would be distributed among applicants evenly, ensuring almost all applicants got a stake in the company,” said Narayanan.
According to sources, KIAL was hamstrung by the Securities and Exchange Board of India (SEBI) norms against advertising and public canvassing. Which resulted in the public, especially NRIs, being unaware of the deadline set for submitting the EoI.