Shares of GMR Infrastructure gained 4 per cent to Rs 22 on the BSE on Friday after the company said the GMR Group would divest its entire 51 per cent stake in Kakinada SEZ to reduce debt.
“The company has signed definitive agreements for the sale of equity owned by its wholly-owned subsidiary GMR SEZ and Port Holding of its entire 51 per cent stake in Kakinada SEZ (KSEZ) to Aurobindo Realty and Infrastructure,” GMR Infrastructure said in exchange filing.
As part of the proposed transfer of stake of KSEZ, the 100 per cent equity stake of Kakinada Gateway Port held by KSEZ would also be transferred to Aurobindo Realty.
Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,610 crore. Out of the total consideration, Rs 1,600 crore would be received on the closing date and balance Rs 1,010 crore would be received in next 2 to 3 years which is contingent upon certain agreed milestones, it said.
KSEZ is engaged in the business of implementation of a port based multi-product special economic zone project at Kakinada, East Godavari District, Andhra Pradesh and KGPL has the Concession granted by the Govt. of Andhra Pradesh to set up a greenfield commercial port in Kona Village of the East Godavari Dist., of Andhra Pradesh.
The sale transaction shall be subject to receipt of regulatory and other statutory approvals, the company said.
At 09:51 am, GMR Infrastructure was trading 3 per cent higher at Rs 21.85 on the BSE, as compared to 1.1 per cent rise in the S&P BSE Sensex. A combined 3.3 million equity shares have changed hands on the counter on the NSE and BSE, so far.
Source: Business-Standard