Shares of D B Realty hit the upper circuit in early trade today after a report said Adani Realty, the luxury residential and commercial property arm of Gautam Adani-led Adani Group, was in advanced talks for a merger with the Mumbai -based realty developer. Late investor Rakesh Jhunjhunwala held 1.9 per cent stake or 50 lakh shares in D B Realty at the end of June quarter. The value of Jhunjhunwala's stake stood at Rs 42.7 crore.
Shares of D B Realty rose 4.98 per cent to Rs 89.60 against the previous close of Rs 85.35 on NSE. Total 34,658 shares of DB Realty changed hands amounting to a turnover of Rs 31.05 lakh on NSE. Market cap of the firm rose to Rs 2,589 crore. On BSE too, the stock hit upper circuit of 5 per cent in early trade. The stock was stuck in the upper circuit of 5 percent at Rs 90.15.
Total 0.30 lakh shares of D B Realty changed hands amounting to a turnover of Rs 27.17 lakh on BSE. Shares of D B Realty were trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Market cap of the firm rose to Rs 2,605 crore. D B Realty shares have gained 235 per cent in a year and risen 92.63 per cent in 2022. In a month, the stock has gained 46.7 per cent.
ALSO READ: 80,000% return in 20 years! Atul Suri explains how mentor Rakesh Jhunjunwala spotted Titan stock
According to a report in the Hindu Business Line, after the merger, DB Realty would be renamed as Adani Realty. DB Realty owns prime property of over 100million sq.ft and 628 acres, mostly in Mumbai. The merger, if concluded, will facilitate listing of Adani Realty on the bourses.
Adani Group is likely to infuse more funds into DB Realty, which would do a fresh equity issuance to the new investor. Earlier, D B Realty's talks with Godrej Properties were not successful.
The company's projects are spread across Mahalaxmi Racecourse, BKC and near ITC Grand Maratha Hotel at Andheri in Mumbai. In a BKC project, it has already tied up with Adani GoodHomes.
ALSO READ: Indian Hotels shares zoom 100% in a year, what's fuelling the rally?
D B Realty is engaged primarily in the business of real estate construction, development and other related activities. The company is focused on residential, commercial, retail and other projects, such as mass housing and cluster redevelopment. The company's residential projects include Pandora Projects Pvt. Ltd., Ocean Towers, One Mahalaxmi, Rustomjee Crown, Ten BKC, DB SkyPark, DB Ozone, DB Woods and Orchid Surburbia. Its DB Ozone is located at Dahisar, which consists of approximately 25 residential buildings.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today