The IPO is expected to collected somewhere in the range of Rs. 2500 Crore from the IPO.
The plan is to sell around 26% of the shares in the CIAL or Cochin International Airport IPO limited, through the IPO book-building process. The 2500 Crore Rs. raised through this IPO will be used for various purposes.
It will be used for constructing an aerotropolis, a maintenance, repair and overhaul (MRO) unit, and also one aviation academy nearby the airport.
Out of the 26%, 20% will be given to the public through the IPO, which remaining 6% is reserved for the employee stock option plan, ot ESOPs, as a benefit for the employees.
Just before the IPO is brought to the market, the CIAL will tie up for an strategic alliance with 2 firms of international exposure to finance the projects. It is also planning to build 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 IPO is coming up in 2009. The IPO is expected to do well, as this will be more of a service provider business, rather than dependent of the clients for complete business - like that of an airline. With millions of Keralietes moving abroad and commuting frequently through Cochin airport, this seems to be a profitable business. Let's see how this IPO performs.
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