Adani Realty is reportedly in talks for a mergerwith Mumbai-based DB Realty— which may lead to the backdoor listing of the Adani grouparm.

A news report in The Hindu Business Line on the merger discussions sent the DB Realty share surging on the bourses on Monday.

The stock was locked at the 5 per cent upper circuit of Rs 90.15 on the BSE.

The news report could not be verified as there were no comments from Adani or DB Realty.

Adani Realty has a mix of residential and commercial properties located in Ahmedabad, Pune, Gurgaon and Mumbai while DB Realty has projects in Mumbai at Andheri, BKC and the Mahalaxmi race course, among other places.

The company posted a consolidated profit of Rs 8.45 crore in the quarter ended June 30,2022, against a loss of Rs 96.19 crore in the same period of the previous year.

Total income from operations stood at Rs 29.14 crore compared with Rs 12.57 crore in the year-ago quarter.

Godrej Properties had earlier said it planned to invest Rs 700 crore in DB Realty.

The proposal was shelved as the minority shareholders of Godrej Properties and other stakeholders objected to the deal.

According to the notes to accounts, the parent company completed a one-time settlement with two lenders.

A sum of Rs 66.75 crore in interest was waived by the lenders that were disclosed under exceptional items by DB Realty.

Additionally, various subsidiaries had entered into settlement with lenders.