INKEL to raise Rs100 cr through rights, deposits

KOCHI: INKEL, the public-private initiative for infrastructure projects set up in 2007 at a paid up capital of Rs100 crore, is all set to raise around Rs100 crore fresh funding through a rights issue  and a deposit scheme, according to a top official of the company.

On the one hand, INKEL will raise the paid up capital from the current Rs163 crore up to its authorized capital of Rs200 crore by selling shares with a face value of Rs10 at a premium of Rs5 – ie, at Rs15 each and on the other, the company is preparing to raise around Rs40 crore through public deposit at a rate of 9.5 per cent.

INKEL, which has completed several projects in infrastructure and commercial space development, is now eyeing large road projects from National Highway Authority (NHA) and projects in solar power generation.

The managing director of the company, Dr Mohammed Sagheer told businessbenchmark.news that having acquired experience in different types of projects in the past more than a decade, the company would now seek opportunities outside the state as well.

INKEL that currently sits on a paid up capital of Rs163 crore has government as is largest shareholder with 24.84 per cent stake followed by Yusaffali MA with a shareholding of 15.13 per cent, Bismi Holding and Varghese Kurian at 6.75 each and Dr Mohammed Ali at 6.44 per cent.

There are several other retail investors including non-resident Indians (NRIs). “Once the funds that we plan to raise come to our kitty, we will be in a comfortable position to embark on new ventures. Moreover, we can leverage our equity to the extent of three times, and that will keep us financially on a strong footing.

INKEL’s first project was a 74:26 joint venture with KSIDC in Ankamaly. The company developed four lakh square feet of office space of which 3.5 lakh has already been leased out on long term

Next was a similar project in Malappuram with the same joint venture partner and this time too, it was commercial space in buildings spread over 50 acres land, which was owned by KSIDC. The space has been leased out to famous footwear makers VKC Chappals, and the rest has been used for setting up a skill development institute partnering with Nettur Technical Training Foundation (NTTF).

The company has also participated in a commercial space development on a 1.2 acre land in Thampanoor partnering with Kerala State Industrial Enterprises (KSIE). Also completed is  a road project of 58 kilometers long at a cost of Rs162 crore.

KIIFB has identified INKEL as its key partner in the Board’s ambitious healthcare projects. According to Dr Sagheer, KIIFB has entrusted the company with ten projects where INKEL will carry out work right from concept to commissioning.

The list of hospitals include  Cochin Cancer Centre, Ernakulam Medical College,  upgrading of Trivandrum Medical College, Wayanad Medical College, Ernakulam General Hospital, hospitals in  Mavelikkara, Chirayankeezhu, Kottayam, Manjeri, etc.

The work on healthcare projects has already started in 2017 and expected to be completed in 2020. “This is a big project for us as it involves an investment of Rs2,000 crore. Our earnings will be in the form of fee – that varies from 3.75 per cent to 5 per cent, depending on the nature of work,” he said

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