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CIAL to float Rs 2,500 crore IPO

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Anirban Chowdhury New Delhi
Last Updated : Jan 29 2013 | 12:29 AM IST

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.

"The tie-ups with international partners and completion of projects by 2009 will increase our valuations and help in raising funds. That explains our plans to have an IPO next year," Bharat added.

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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.

The company plans to bid for other greenfield and brownfield airport projects with its international partners.

"We are looking at national projects in Maharashtra, Andhra Pradesh and Karnataka. In Maharashtra, we will look at the small greenfield airports such as Sholapur, Shirdi and Sindhdurg," said Bharat.

The consortium is also in talks for developing a $500 million airport development project at Veerabila in Sri Lanka.

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First Published: Mar 20 2008 | 12:00 AM IST

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