How to Invest in CIAL Cochin International Airport: Understanding an Unlisted Company

Investing in shares of unlisted companies can be a challenging yet potentially rewarding endeavor. CIAL, Cochin International Airport Limited, is a top performer in the aviation sector, but due to its unlisted status, it presents a unique set of investment challenges. In this guide, we will explore how to invest in CIAL, its financial performance, and the investment landscape.

Understanding the Share Details

CIAL's unlisted share price stands at ?465 per share, with a lot size of 100 shares. The share price has shown significant fluctuations over the past year: the 52-week high was ?495, while the 52-week low was ?205. These numbers indicate a high level of volatility, despite the company's strong performance.

Financials and Performance

While the shares of CIAL offer a lower level of liquidity compared to listed shares, they promise higher returns on investment. The company's strong performance can be attributed to several factors:

Strong Business Fundamentals: CIAL has established a robust business model, backed by consistent financial performance. Innovations: The company continues to innovate and expand its services, enhancing its competitive edge. Monopoly-like Position: CIAL enjoys a dominant position as Kerala's primary international gateway, which ensures steady traffic and revenue flows.

These factors, along with the attractive dividend yields, make CIAL a strong long-term investment. Moreover, the company is expected to launch an IPO in the near future, which could significantly enhance the valuation of unlisted shares held by investors.

Investing in Unlisted Companies

An unlisted company, whether 'public' or 'private,' operates more like a partnership. Promoters typically hold a majority stake and may issue shares to family members, close relatives, business associates, or friends. Third-party investors are often approached only by financial advisors who have helped them raise funds.

For retail investors, the process of investing in unlisted companies can be complex. Here are some steps to consider:

Approach the Promoters/Directors: If you are interested in investing, you should directly approach the promoters or directors of the company. They may be able to provide insights into the company's growth plans and future prospects. Financial Advisors: Engage the services of a financial advisor who has experience in unlisted company investments. They can guide you through the legal and financial aspects of the investment. Time Sensitive Opportunities: Investments in unlisted companies are often linked to specific events, such as expansion, renovation, or urgent financial needs. Be prepared to act quickly when such opportunities arise.

Buying CIAL Shares

Given that CIAL is currently not listed on the stock exchange, there are limited options for retail investors to directly purchase shares:

Primary Market (IPO): If CIAL undergoes an IPO (Initial Public Offering), retail investors can buy shares directly through the stock exchange. Secondary Market (Stock Market): Although CIAL is not yet listed, its stakeholders, if any are listed, might offer shares in the secondary market. You can search for such listed entities that own stakes in CIAL and consider investing in them. Direct Contact: Retail investors can also try to contact the company directly and explore the possibility of purchasing shares, though this is not an easy route and is subject to the company’s regulations and approval.

Conclusion

Investing in unlisted companies, such as CIAL, Cochin International Airport Limited, requires patience, research, and strategic planning. While the liquidity is lower, the potential returns can be substantial. Keep an eye on the market and be prepared to act quickly when opportunities arise. With the expected IPO, the future looks bright for CIAL, offering increased investment opportunities and higher valuations for unlisted shareholders.