Yusuffali buys 7 million new Cial shares

Kochi: Yusuffali MA, one of the key founding promoters of Cochin International Airport Ltd (Cial), increased his stake in the company from 7.87 per cent to 9.73 per cent during the last financial year.

Cial’s continued good performance has been drawing big investors from Mumbai and other commercial cities through reputed brokerage houses to the small investors, who hold only less than 10 per cent of the total ownership in the airport that boasts to be the only airport in the world to run on solar energy.

With an asset base of Rs2,272 crore and a networth of Rs1,282.75 crore (as on March end, 2017), the book value per share worked out to Rs33.53 – a far cry from the rumoured market price of around Rs175-Rs200. Again, this price is derived from phone calls made by businessbenchmark.news to brokers, and need official confirmation on the real deal prices.

Official documents show that Yussafali had bought more than 71 lakh shares during the three-month period ending May 31, 2017. Though not officially confirmed, it can be logically concluded that Yusuffali had bought 9,29,977 shares from CV Jacob, one of the promoter directors of the company,  as the latter had sold his shares on the same day when Yussaffali amassed the major chunk of the new shares.

This also could lead to the fact that Yussaffali had raised more than 60 lakh shares from the small investors, though this also doesn’t have official confirmation.  The conclusion has been reached from the fact that there had not been much change in the shareholding pattern among the large investors during that period.

The latest available tally of the holding is that Government of Kerala (GOK) being the largest single shareholder in CIal holds 12.403 crore shares in the company with 32.42 per cent ownership. GoK is followed by NV George with 11.97 per cent stake and Yussuffali with 9.73 per cent in CIAL.

MS Synthite Industries Ltd, which used to own 8.16 per cent of the company during 2014-15 period, now holds a truncated 6.53 per cent as of March 31, 2017.

Yussaffali, with successful innings in the Middle East in the last more than three decades, has been making a gradual entry into Kerala’s business terrain, especially financial services sector, in the last decade – ever since he decided to invest in his favourite business – malls.

Yussaffali is reported to own around2.23 per cent in South Indian Bank (SIB); close to five per cent in banks such as Federal Bank, Dhanalaxmi Bank and Catholic Syrian Bank (CSB) whereas, he owns 9.45 per cent in the recently established Cheraman Financial Services Ltd (CFSL). In Kannur International Airport project too, he is reported to be holding a small stake – but no official confirmation available.

 

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