KOCHI: Retail investors of Cochin International Airport Ltd (CIAL) are intensifying their push to persuade the management to list the company’s shares on the stock market – a long-standing demand aimed at fostering transparency and unlocking shareholder value.
Despite having over 18,000 retail shareholders, the ownership of CIAL remains concentrated. The Government of Kerala (GoK), MA Yusuffali, and NV George collectively hold more than 51 per cent of the company’s shares.
Post the March 2023 rights issue, GoK increased its stake to 33.38 percent, up from 32.4 percent, while Yusuffali now holds 12.11 percent. However, NV George, once the second-largest shareholder after GoK, has reduced his stake significantly – from 7 per cent at the start of FY24 to 5.94 per cent during 2023-24.
Meeting with MD
In a conversation with businessbenchmark.news, AK Nazeer, president of the Shareholders’ Organisation of Cochin International Airport Ltd (SOCIAL), revealed that the group had already met CIAL’s Managing Director, S Suhas (IAS), to advocate for listing the company’s shares.
“Suhas assured us that the matter would be placed before the board of directors, the decision-making body for such proposals. However, he also indicated that the listing might not be prioritised until key projects – such as the runway extension and the completion of a planned five-star hotel – are completed,” Nazeer said.
Undeterred, SOCIAL plans to escalate the matter by meeting Kerala Chief Minister Pinarayi Vijayan, who also serves as the company’s chairman. CIAL, which began commercial operations on June 10, 1999, has been operational for over a quarter of a century.
Retail shareholders have repeatedly expressed frustration over the lack of opportunities to voice their concerns. “Even though COVID is far behind us, CIAL continues to hold annual general meetings (AGMs) online,” said Nazeer.
Retail shareholders feel sidelined
“We aren’t given a platform to discuss pressing issues about the company during AGMs. I have personally submitted questions well in advance of the meetings, but they never allow us to raise them,” he added.
A Kochi-based broker told this portal that he struggles to understand why the government resists listing CIAL shares. “The current setup benefits a handful of influential investors who dominate the informal market, setting buying and selling prices with little regulation,” he remarked.
The situation leaves thousands of small investors in a lurch, unsure of fair pricing. A former Toop CIAL official admitted being perplexed by the pricing of CIAL shares in the informal market.
“Shares are frequently sold at 6 to 8 times the book value, even though the rights issue was priced at Rs50 per share. It’s baffling how these prices are determined,” the former official observed.
