AP govt waives distance norm to enable Aurobindo Realty pick stakes in 2 ports
March 11, 2021
Infra developer to hold 74% and 26% to be with GMR SEZ & Port Holding
The Andhra Pradesh government has allowed Aurobindo Realty and Infrastructure Pvt Ltd to acquire majority stakes in Kakinada Gateway Port Ltd (KGPL) and the nearby Kakinada Seaports Ltd by waiving a restriction in the concession agreement for KGPL that barred its developer and operator from holding over 25 per cent stake in another port located within 75 km. Since Kakinada Gateway Port and Kakinada Seaports Ltd are within the 75 km of each other, Aurobindo Realty could not have acquired controlling stake in the two ports without the waiver.
January 17, 2021
A file picture of Kakinada Port×
For Aurobindo Pharma promoters, this is the second port investment in four months. Hyderabad-based Aurobindo Realty and Infrastructure Pvt Ltd will acquire a 41.12% stake in Kakinada Seaports Ltd, the second port investment in four months by the real estate and infrastructure venture formed by the promoters of Mumbai-listed Aurobindo Pharma Ltd.
Aurobindo Realty and Infrastructure will buy the stake from Kakinada Infrastructure Holdings Pvt Ltd, one of the original promoters of Kakinada Seaports, multiple sources said.
BusinessLine could not ascertain the value of the deal.
The acquisition will make Aurobindo Realty and Infrastructure the single largest shareholder in Kakinada Seaports. Other shareholders in the port operating company, includes VR Investments Pvt Ltd (30.40%), Konsortium Ports Pte Ltd (17.35%) and South India Infrastructure Development Company Pvt Ltd (11.13%).