NEW DELHI: Debt-laden GMR Infrastructure on Friday said it has signed an agreement to sell its stake in Kakinada SEZ Limited (KSEZ) to Aurobindo Realty. Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,610 crore. Out of this, Rs 1,600 crore would be received on the closing date and the balance of Rs 1,010 crore will be received in 2-3 years, which is contingent upon certain agreed milestones, GMR said.
Its wholly-owned subsidiary GMR SEZ and Port Holding Ltd (GSPHL) will sell its entire 51 per cent stake in Kakinada SEZ Ltd. “As part of the proposed transfer of stake of KSEZ, the 100 per cent equity stake of Kakinada Gateway Port Ltd (KGPL) held by KSEZ would also be transferred to Aurobindo Realty,” the company said in a stock exchange filing. The sale transaction will be subject to receipt of regulatory and other statutory approvals.
KSEZ is engaged in the implementation of a port-based multi-product special economic zone project at Kakinada, East Godavari District, Andhra Pradesh. KGPL has the concession granted by the Andhra Pradesh government to set up a greenfield commercial port in the state. According to the company, the proceeds will be used to further trim debt of GMR Group.
According to the December quarter numbers, the New-Delhi-headquartered diversified conglomerate has a humongous net debt of Rs 25,660 crore. It is expected to have come down to at least Rs 14,880 crore now, considering if it used most of the proceeds of its earlier deal selling its airport businesses. On the other hand, it also appears that the firm is minimizing exposure to the energy business. A deal was signed with JSW Energy earlier this year to sell its stake in the 1,050 MW thermal power plant, GMR Kamalanga, for a sum of Rs 5,321 crore.