GMR Infra rallies 12% on divesting 51% stake worth Rs2,610cr in Kakinada SEZ to Aurobindo Realty

The transaction is now subject to regulatory approvals.

Sep 25, 2020 03:09 IST India Infoline News Service

GMR Infrastructure has signed a definitive agreement on Friday with Aurobindo Realty and Infrastructure (ARIPL) where the former will sell equity owned by its wholly-owned subsidiary GMR SEZ and Port Holding (GSPHL) of its entire 51% stake in Kakinada SEZ to the latter.

On Sensex, the company's stock has jumped by as much as 11.55% with an intraday high of Rs23.65 per piece in the second half trading session.

GMR has also proposed transfer of stake of KSEZ, the 100% equity stake of Kakinada Gateway Port (“KGPL”) held by KSEZ would also be transferred to Aurobindo Realty.

In its regulatory filing, GMR said, "Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs2610cr. Out of the total consideration, Rs1600cr would be received on the closing date and balance Rs1010cr would be received in next 2 to 3 years which is contingent upon certain agreed milestones."

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 transaction is now subject to regulatory approvals.

At around 3.03 PM, GMR Infra stock was trading at Rs23.55 per piece zooming by 11.08% on Sensex.

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