Can you tell me about the GMR deal with Aurobindo Realty?

Shares of GMR Infrastructure have been rallying of late after the company announced plans to divest its entire 51% in the Kakinada Special Export Zone or SEZ. It has already signed a definitive agreement in this regard with Aurobindo Realty and Infrastructure.

GMR will sell the 51% stake in Kakinada SEZ held by GMR SEZ and Port Holding. The stake will be sold to Aurobindo Realty and Infrastructure; the realty projects business of the Aurobindo group. As part of the deal, the 100% equity stake of Kakinada Gateway Port held by KSEZ would also be transferred to Aurobindo Realty.

It is reported that the total consideration for the sale of the said equity stake in KSEZ would be close to Rs.2610 crore. A sum of Rs,1600 crore would be received immediately on the deal being signed while the balance Rs.1010 crore would be received in 2 to 3 years based on milestones.

KSEZ is implementing port based multi-product special economic zone project at Kakinada, which is in the East Godavari District of the state of Andhra Pradesh. The sale transaction is subject to receipt of necessary regulatory and statutory approvals.