GMR Infrastructure on Friday said it has received Rs 1,692 crore in the first tranche from the sale of its stake in Kakinada SEZ and Port Holdings Limited to Aurobindo Realty. The company's wholly-owned subsidiary GMR SEZ and Port Holdings (GSPHL) had divested its entire 51 percent stake in Kakinada SEZ to Aurobindo Realty and Infrastructure Private Ltd (ARIPL).
GMR in a statement said that as part of the transfer of stake of KSEZ and in terms of regulatory requirements, the 74 percent equity stake of Kakinada Gateway Port Limited held by KSEZ is also being transferred to Aurobindo Realty.
"Total revised consideration for the sale of equity stake as well as the sub-debt of 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 next 2-3 years which is contingent upon certain agreed milestones," the GMR Infrastructure said in a statement.
The majority of the divestment proceeds are primarily used to reduce the indebtedness of the group, it said.
ALSO READ | Explained: Is the euphoria around IPOs fading?
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 Andhra Pradesh to set up a greenfield commercial port in Kona Village of the East Godavari District.
(Edited by : Ajay Vaishnav)