“It can be an export gateway for the region.”
- G. Chandramouli, Managing Director, KIAL
Kannur International Airport serves Kerala’s popular heritage and tourism sites, such as the Northern Malabar region, the Mahe district of Puducherry, and Kannur city. Moreover, the airport also connects Kerala’s northern region and Karnataka’s neighbouring districts, such as Mysore, Coorg, and Mysore. Kannur International Airport Ltd is a public limited company incorporated in 2009 and supported by the Kerala government that built and operates the Kannur International Airport located 25 km away from Kannur city.
Due to the huge success of KIAL after its inauguration in 2016, the international airport has been an interesting subject for the business world. Although the company’s shares remain private, its unlisted shares have been actively traded in the grey market. Undoubtedly, with its increasing success and business activities, Kannur airport share price and its popularity among investors will continue to climb.
Kannur International Airport Ltd (KIAL)
Kannur International Airport is the fourth international airport in Kerala and the youngest of them. It is an old airstrip recently re-designed to become an international airport with promising potential. The tourist-flooded state of Kerala had felt the need for an international airport in Kannur, and the idea was realised on 9 December 2018 when the airport began its commercial operations.
The construction of the airport took nearly eight years and was first tested using Indian military aircraft in 2016. Its first flight was Boeing 737-800, an Air India Express flight, to Abu Dhabi on 9 December 2018. The airport saw more than a million passengers in its first nine months.
The Extensive Business Model of KIAL
Kannur International Airport Limited is a state government company that owns the airport. Kannur International Airport is built under a private-public model, and they are a great success in Kerala due to the local government’s participation. The airport provides faster decision-making backed by the local community due to the local shareholders in KIAL.
The airport is built by considering the environment and is Kerala’s second greenfield airport. Kannur international airport spans an area of 2000 acres. The abundance of land brimming with industrial potential gives way to airport-integrated business opportunities. Moreover, the airport is also set to gain from the Regional Connectivity Scheme.
The profit opportunities of KIAL extend to a pervasive range that includes heavy industry, marine products, fruits and other food items trade, and textile and handloom products. Kerala is home to many products with global demand, and the business model of Kannur International Airport Limited ensures that the airport has consistent revenue all year round.
Kannur International Airport Share Overview
KIAL is a state government-owned company with the chief minister of Kerala as its chairman. Kannur International Airport has not undergone an initial public offering (IPO), and its shares remain private. However, KIAL unlisted shares are heavily traded in the off-market and therefore retain active status.
The table below depicts the stockholders in KIAL as of 31 March 2019.
| Shareholder | Shareholding | No. of shares |
| Govt. of Kerala | 33.03% | 3,50,00,000 |
| BPCL | 20.46% | 2,16,80,000 |
| Airports Authority of India | 9.44% | 1,00,00,000 |
| MA Yusufali | 8.96% | 95,00,000 |
| Others | 28.11% | 2,97,90,800 |
| Total outstanding shares | 100% | 10,59,70,800 |
Reasons That Make Kannur International Ltd A Good Investment Option
Kannur International Airport Ltd is more than just an airport that facilitates transport. It’s a business with an overwhelming range of opportunities. Several aspects of Kannur International Airport Ltd make it stand out. Let us dive deep into the salient reasons that make Kannur International Airport an investor choice
Futuristic Business Approach
Kannur International Airport is built under a public-private association with an approach to making unprecedented profits. KIAL aims to increase its revenue growth through aero services, space rentals, and non-aero services.
Moreover, the government scheme, NABH-Nirman, plans to support the capability of Indian airports.
Nearby Tourist Destinations
Kannur International Airport serves destinations that are domestically and internationally renowned for tourism.
Moreover, the number of international tourists arriving at the airport constantly increases. For instance, 304285 international tourists reached Kannur International Airport in 2020-2021, but this figure rose to 522317 in 2021-2022.
| YEAR | TOTAL PASSENGERS | DOMESTIC PASSENGERS | INTERNATIONAL PASSENGERS |
| 2018 – 2019 | 229594 | 137586 | 92008 |
| 2019 – 2020 | 1619723 | 791647 | 828076 |
| 2020 – 2021 | 491523 | 187238 | 304285 |
| 2021 – 2022 | 803436 | 281119 | 522317 |
The above data shows how the number of international passengers is increasing again after the airport opened completely again post the covid restrictions.
Anticipated Boom In The Tourism Industry
Indian government and companies like OYO Hotels & Rooms started 2023 by empowering the hospitality and tourism industry and capitalising on the immense opportunity this industry holds. The budget for the financial year 2023-24 highlights the tourism industry as an essential part of its work area this year. Therefore, experts predict that 2023-25 will see an unexpected surge in international tourist visits to India as the industry recovers from the impacts of a pandemic. Kannur International Airport Ltd is planning to gain immensely from that opportunity.
Invest Early In KIAL Unlisted Shares To Make Big Returns
Investing in unlisted shares of Kannur International Airport Ltd is highly different from the regular shares. First, the stocks of KIAL are not yet to be traded on the stock exchange platforms and, therefore, have yet to go through the phase of high demand when the share price climbs quickly. Investing early in Pre-IPO shares like KIAL when the prices are comparably less will bring returns when the cost of these stocks becomes high.
Moreover, investing now in KIAL unlisted shares will allow retail investors to benefit from the boom in the tourism industry. These reasons make KIAL unlisted shares a sure bet for stock traders.
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