CIAL may invest in wind mill, solar energy sectors
Cochin International Airport Limited (CIAL) is planning to make forays into renewable energy sector with part of the funds it intends to mobilize through its ensuing public issue.
“Renewable energy is definitely one area we will be exploring for diversifying our revenue streams. We may go in for wind mills in areas like Palakkad where there is potential for such investments. We may also try solar energy, or even mini-hydel projects,” V J Kurien, MD of CIAL, told TOI here.
CIAL is also toying with the proposals to enter other infrastructure areas like roads and airports as well, he said.
CIAL, which built the first PPP model airport in the country, will launch its maiden public issue if its extraordinary general body meeting scheduled for March 31 approves the proposal.
It will be for the first time in India that an airport company is making forays into infrastructure sector, though there have been instances of infrastructure companies embarking on airport projects before.
According to Kurien, the public issue could be in the range of Rs 1,000 crore to Rs 1500 crore once the company’s board gives its consent. The money could be raised in tranches. The company currently has an equity base of Rs 300 crore, and surplus reserve of Rs 150 crore.
“It could be easy for us to raise a debt of Rs 600 crore. But we are going in for this public issue to list the shares and thereby enable the share-holders to trade the shares in stock exchanges,” the CIAL MD said.
Kurien, however, declined to comment on the demand by a section of shareholders that they must also be allocated shares at par just like CIAL had done in the case of HUDCO.