GMR Infrastructure gets First Tranche consideration towards divestment of Group’s entire stake in Kakinada SEZ
13th Aug 2021

GMR Infrastructure has received total First Tranche Consideration towards the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holdings (GSPHL) of its entire 51% stake in Kakinada SEZ (KSEZ) to Aurobindo Realty and Infrastructure (ARIPL). As part of the said transfer of stake of KSEZ and in terms of regulatory requirements, the 74% equity stake of Kakinada Gateway Port (KGPL) 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 in KSEZ is Rs 2,719 crore. Out of the total consideration, Rs 1692 crores (First Tranche Consideration) is received and balance Rs 1,027 crore would be received in next 2 to 3 years which is contingent upon certain agreed milestones. The majority of the divestment proceeds are primarily used to reduce the indebtedness of the Group.

GMR Infrastructure is engaged in generation of power, mining and exploration activities, development of highways, infrastructure development, such as development and maintenance of airports and special economic zone; construction business, including engineering, procurement and construction (EPC) contracting activities and operation of airports and special economic zones.