Adani Realty, the luxury residential and commercial property arm of the leading multinational conglomerate Adani Group, is in advanced talks for a merger with Mumbai-based DB Realty, according to a report by business daily The Hindu BusinessLine.
The merger could be one of India’s largest real-estate deals and is likely to pave way for Adani Realty's listing on the bourses. DB Realty is a listed company and after the merger it would be renamed as Adani Realty, as per the report.
Moneycontrol could not independently verify the report.
Also Read: DB Realty hits upper circuit after bagging project from Municipal Corporation of Great Mumbai
The merger deal would clear the decks for the back-door listing of Adani Realty on the stock exchanges. Adani is likely to infuse more funds into DB Realty, which would result into a fresh equity issuance to new investors. This comes after DB Realty’s talks with Godrej Properties did not go forward.
In Mumbai, DB Realty's projects are spread across Mahalaxmi Racecourse, BKC and near ITC Grand Maratha Hotel at Andheri. It has a portfolio comprising over 100 million square feet and 628 acers of prime property, mostly in Mumbai.
In a BKC project, DB Realty already tied up with Adani GoodHomes, according to the report.
DB Realty’s BKC residential project is worth more than Rs 3,500 crore. Overall, it is expecting a surplus of around Rs 65,000 crore from its nearly two dozen projects mostly in Mumbai.
According to the report, DB Realty requires major funds infusion for its ongoing high-end projects and Adani Realty is said to be a suitor. Currently, the market-cap of DB Realty is close to Rs 2,500 crore and the counter has been witnessing 100 per cent delivery in daily trading on the stock exchanges for the past several weeks.
Promoters led by the Vinod Goenka family, Balwa family and a few others put together own close to 69 per cent stake in DB Realty .
On the other hand, Adani Realty has three high end projects in Mumbai, which include an ongoing site at Ghatkopar, one each in the westerns suburbs and in central Mumbai, the report added.
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