News | Sept 13, 2022
The transaction, which may be the largest real estate deal in India, will pave the way for the listing of the real estate arm of billionaire Gautam Adani
Adani Realty is in advanced talks for a merger with Mumbai-based DB Realty, according to a media report. The transaction, which may be the largest real estate deal in India, will pave the way for the listing of the real estate arm of billionaire Gautam Adani.
This comes after DB Realty’s talks with Godrej Properties did not go forward. After its merger with Adani Realty, DB Realty, which is a listed company, will be renamed as Adani Realty. Adani might infuse more funds into DB Realty, which would do a fresh equity issuance to the new investor, according to the Hindu Business Line report.
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.
It added that DB Realty requires major funds infusion for its ongoing high-end projects and hence Adani Realty is said to be a suitor. Currently, the market-cap of DB Realty is about 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 the company.
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.
Since 2006-07 when it introduced itself as a luxury real estate developer, DB Realty and its promoters have had run-ins with Central Bureau of Investigation, income tax and other investigative agencies. A group company was also declared a willful defaulter by a lender.