GMR receives Rs 1,692 Cr from Aurobindo Realty as 1st tranche for SEZ stake sale

GMR Infrastructure Limited on Friday said it received Rs 1,692 crore as first tranche of consideration towards the sale of equity owned by its subsidiary GMR SEZ and Port Holdings Limited of its entire 51 per cent stake in Kakinada SEZ Limited to Aurobindo Realty and Infrastructure Private Limited.

In a press release, GMR said as part of the transfer of stake of KSEZ, 74 per cent equity stake of Kakinada Gateway Port Limited held by KSEZ is also being transferred to Aurobindo Realty.

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"Total revised consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs. 2,719 crore. Out of the total consideration, Rs. 1,692 crore ("First Tranche Consideration") is received and the balance Rs. 1,027 crore would be received in the next 2 to 3 years which is contingent upon certain agreed milestones," GMR said.

The majority of the divestment proceeds are primarily used to reduce the indebtedness of the Group, the release 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 state government to set up a greenfield commercial port in Kona village in East Godavari.