Adani Realty is in advanced talks for a merger with D B Realty Limited (BSE:533160), sources in the know told BusinessLine. DB Realty is a listed company and after the merger it would be renamed as Adani Realty, the sources said. Simply put, the 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 do a fresh equity issuance to the new investor. This comes after DB Realty's talks with Godrej Properties did not make any headway. According to the sources, 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 close to INR 25 billion and the counter has been witnessing 100% 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% stake in the company. Sahid Balwa, Managing Director, DB Realty, said he would not want to comment on speculative news and an email query sent to the company secretary remain unanswered.

Email sent to Adani Group spokesperson remained unanswered.