On Friday, it was announced by GMR Infrastructure in a regulatory filing about signing definitive agreements for the divestment of its whole 51 per cent stake in Kakinada SEZ Ltd to Aurobindo Realty. This includes subsidiary GMR SEZ and Port Holding Ltd (GSPHL).

“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. Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,610 crore,” the company said.

GMR mentioned that from the overall consideration, Rs 1,600 crore would be obtained on the closing date and the remaining Rs 1,010 crore would follow in the upcoming 2 to 3 years, which is contingent upon certain agreed milestones. Proceeds will be utilized significantly to decrease the indebtedness of GMR Group. KSEZ currently focuses on the business of implementation of a port-based multi-product special economic zone project at Kakinada, East Godavari District, Andhra Pradesh, with KGPL having the concession permitted by the Andhra Pradesh government for setting up a greenfield commercial port in the state.