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GMR Infrastructure Limited has announced it has received total first tranche consideration towards the sale of equity owned by its wholly-owned subsidiary GMR SEZ and Port Holdings Limited (GSPHL). The company had divested its entire 51% stake in Kakinada SEZ Limited (KSEZ) to Aurobindo Realty and Infrastructure Private Limited (ARIPL).
Of the total consideration of ₹2,719 crore, the compay has received ₹1,692 crore as first tranche consideration and the balance of ₹1,027 crore it will be paid over the next 2-3 years, according to a company statement. As part of the said transfer of stake of KSEZ and in terms of regulatory requirements, 74% equity stake of Kakinada Gateway Port Limited (KGPL) held by KSEZ is also being transferred to Aurobindo Realty.
Also read: Groupe ADP, GMR execute industrial partnership in airport sector
Reducing debt
The majority of the divestment proceeds are primarily used to reduce the debt of the diversified group, engaged in infrastructure. KSEZ is engaged in the business of implementation of a port based multi-product special economic zone project at Kakinada in East Godavari district of Andhra Pradesh and KGPL has the concession granted by the Andhra Pradesh Government to set up a greenfield commercial port in Kona village in East Godavari district.
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