GMR Infrastructure rose 4.95% to Rs 22.25 after the company announced divestment of group's entire 51% stake in Kakinada SEZ.
GMR Infrastructure on 25 September 2020 announced signing of definitive agreements for the sale of equity owned by its wholly owned subsidiary GMR SEZ and Port Holding (GSPHL) of its entire 51% stake in Kakinada SEZ (KSEZ) to Aurobindo Realty and Infrastructure (ARIPL). As part of the 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.Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2610 crore. Out of the total consideration, Rs 1600 crore would be received on the closing date and balance 1010 crore would be received in next 2 to 3 years which is contingent upon certain agreed milestones. Proceeds will be used majorly to reduce indebtedness of the GMR group.
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 in Andhra Pradesh. The sale transaction shall be subject to receipt of regulatory and other statutory approvals.
GMR Infra has jumped 57.80% from its 52-week low of Rs 14.10 hit on 13 March 2020.
On a consolidated basis, GMR Infrastructure reported net loss of Rs 833.87 crore in Q1 June 2020 compared with net loss of Rs 336.12 crore in Q1 June 2019. Net sales dropped 43.7% to Rs 1,006.43 crore in Q1 June 2020 over Q1 June 2019.
GMR Infrastructure is a leading global infrastructure conglomerate with interests in airport, energy, transportation and urban infrastructure.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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