GMR Infrastructure share price surges 9% on divestment of 51% stake in Kakinada SEZ

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September 25, 2020 11:34 AM

GMR Infrastructure shares have rallied 64 per cent from March low of Rs 14.10 apiece. In the last four days, GMR Infrastructure shares have gained 4.7 per cent.

GMR Infra, GMR Infra share priceGMR Infra has informed that the proceeds of the sale will be used majorly to reduce indebtedness of the group

GMR Infrastructure share price surges 9 per cent to Rs 23.10 apiece on BSE in Friday’s session after the company announced divestment of the group’s entire stake in Kakinada SEZ Limited (KSEZ) to Aurobindo Realty and Infrastructure Private Limited. The company in its press release informed that GMR SEZ and Port Holding Limited, a subsidiary of GMR Infra, is selling the 51 per cent equity. As part of the proposed KSEZ stake transfer, the 100 per cent equity stake of Kakinada Gateway Port Limited held by KSEZ would also be transferred to Aurobindo Realty. The sale of equity stake, as well as the sub-debt in KSEZ, has been valued at Rs 2,610 crore, out of which Rs 1,600 crores would be received on the closing date and balance Rs 1,010 crore would be received in the next two to three years.

GMR Infrastructure shares have rallied 64 per cent from March low of Rs 14.10 apiece. The airport services firm hit a 52-week of Rs 28.25 apiece in August this year. Around 11.15 AM, GMR Infrastructure shares were trading 7.78 per cent higher at Rs 22.85 apiece, in comparison to a 1.05 per cent gain in BSE Sensex. In the last four days, GMR Infrastructure shares have gained 4.7 per cent till today’s high. The company has informed that the proceeds of the sale will be used majorly to reduce the indebtedness of the 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 Andhra Pradesh government to set up a greenfield commercial port in the state. The sale transaction shall be subject to receipt of regulatory and other statutory approvals, the company added. Recently, the group signed a concession agreement to the commission, operationalize and maintain the Civilian Enclave at the Bidar Airport in North Karnataka. It is also developing airport cities on the commercial land available around its airports in Delhi, Hyderabad and Goa.

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