This Jhunjhunwala stock hits upper circuit on merger talks with Adani Realty

Shares of DB Realty hit their upper circuit in Tuesday’s trade, amid media reports of a merger with Adani Group’s real estate arm.

According to media reports, Adani Realty, the luxury property division of the leading multinational conglomerate Adani Group, is in advanced talks for a merger with Mumbai-based DB Realty.

The reported merger could be India's largest real estate deal and is likely to pave the way for the stock market listing of Adani Group's realty firm.

Following the development, shares of DB Realty zoomed 5 per cent, its daily circuit limit, to Rs 94.65 on Tuesday.

Adani Group is likely to infuse more funds into DB Realty, which would result in a fresh equity issuance to new investors. Earlier, DB Realty was in talks with Godrej Properties, which could not produce fruitful results.

The real estate firm has a portfolio comprising over 100 million square feet and 628 acres of prime property, mostly in Mumbai. Also, the company tied up with Adani GoodHomes on various projects.

Shares of DB Realty have risen almost 53 per cent in the last month, whereas the counter delivered a return of 93 per cent so far in the current calendar year.

Promoters, including Vinod Goenka family, Balwa family and a few others, put together close to 69 per cent stake in the Mumbai-based DB Realty.

Late Rakesh Jhunjhunwala, who passed away last month, and his wife Rekha, cumulatively held 50,00,000 lakh equity shares or 1.73 per cent stake in the company as of June 30, 2022.

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