Anant Raj Board Approves Strategic Demerger to Create Two Focused Independent Listed Companies

Anant Raj Limited (ARL), one of India's leading real estate and infrastructure developers, today announced a landmark proposal for strategic restructuring with the approval of a Composite Scheme of Arrangement by its Board of Directors. The Composite Scheme to be approved by Hon'ble NCLT under Sections 230 to 232 of the Companies Act, 2013, will create two focused listed companies by separating the Group's rapidly growing Data Centre & Cloud Services business from its core real estate and infrastructure business.

The approved Composite Scheme marks a significant strategic restructuring for the Group. Under the proposed arrangement, Anant Raj will first consolidate all its data centre and cloud operations under one entity before carving them out into Ashok Cloud Pvt Limited, a dedicated digital infrastructure and cloud services company that will be listed independently. The restructuring is aimed at creating two focused businesses one in real estate and infrastructure and the other in digital infrastructure allowing each to pursue independent growth strategies, improve operational efficiency and create long-term value for shareholders.

Two Independently Focused Listed Companies

Upon completion of the Scheme, the Group will comprise two independently listed businesses, each with a distinct strategic focus.

Anant Raj Limited

Anant Raj Limited will continue to focus on its core businesses of real estate and infrastructure development, with a diversified portfolio spanning residential townships, luxury housing, commercial developments and hospitality projects. The Company will continue to strengthen its leadership position in India's real estate sector through focused execution and long-term expansion.

Ashok Cloud Pvt Limited

Ashok Cloud Pvt Limited will emerge as a dedicated digital infrastructure and cloud services company, providing advanced data centres, co-location services, sovereign public cloud offerings, Artificial Intelligence (AI) ready cloud infrastructure, DC & DR services including cloud migration, data backup solutions and other allied services. As an independent listed entity, the Company will be well positioned to capitalize on the rapidly growing demand for digital infrastructure and cloud services in India.

Commenting on the development, Mr. Amit Sarin, Managing Director, Anant Raj Ltd, said: "Our real estate, infrastructure business and Data Centre & Cloud Services Business have evolved into two distinct platforms, each with its own growth trajectory, operational priorities, and capital needs. As both businesses enter their next phase of expansion, the proposed composite scheme is designed to provide greater strategic focus, management autonomy, and flexibility to pursue long-term value creation.

By bringing together the data centre and cloud services operations currently housed across Anant Raj Ltd and Anant Raj Cloud Pvt Ltd under one roof, we are creating a more focused and scalable platform that will be wellpositioned to attract investments, pursue strategic partnerships, and capitalize on emerging opportunities in the digital infrastructure sector. The proposed demerger is also expected to facilitate independent market recognition of the Data Centre Business while enabling eligible Anant Raj Ltd shareholders to participate directly in its future growth and value creation.

Following the restructuring, Anant Raj Ltd will continue to strengthen its focus in real estate and infrastructure, while Ashok Cloud will focus on building a robust data centre and cloud services (including AI ready cloud infra) business. We believe this sharpened strategic alignment will enhance operational agility, unlock new opportunities across both businesses, and deliver sustainable long-term value for shareholders and all stakeholders."

Strategic Rationale Behind the Demerger

The proposed restructuring reflects the evolution of Anant Raj into two distinct businesses with different growth drivers, capital requirements and operating models. The demerger will enable each business to pursue focused growth strategies while allowing investors to independently evaluate and value the real estate and digital infrastructure businesses.

The transaction is expected to deliver multiple strategic benefits, including:

- Creation of Two Focused Businesses: Dedicated management teams, independent strategic direction and sharper operational focus for both business verticals.

- Unlocking Shareholder Value: Independent market recognition and valuation of the Data Centre & Cloud Services business as a pure-play digital infrastructure company.

- Direct Shareholder Participation: Eligible Anant Raj shareholders will directly participate in the long-term growth and value creation of the standalone digital infrastructure business.

- Simplified Corporate Structure: Consolidation of all data centre and cloud operations under a single entity, resulting in streamlined governance, enhanced transparency and faster decision-making. Greater flexibility for the cloud business to attract sector-focused investors, strategic partnerships, acquisitions and growth capital.

- Dedicated Management Focus: Independent leadership teams enabling both businesses to execute growth strategies aligned with their respective market opportunities.

Shareholders to Benefit from Direct Participation

Upon the Scheme becoming effective, eligible shareholders of Anant Raj Limited will receive one fully paid-up equity share of face value of ₹2 each in Ashok Cloud Private Limited for every one fully paid-up equity share of face value of ₹2 each held in Anant Raj Limited.

The Scheme will not result in the cancellation of Anant Raj Limited's existing shareholding in Ashok Cloud Private Limited, and ACPL will continue to remain a subsidiary of Anant Raj Limited.

The proposed Scheme is subject to receipt of all necessary statutory, regulatory and judicial approvals, including approvals from the National Company Law Tribunal (NCLT), SEBI, the stock exchanges, shareholders, creditors and other applicable authorities, as required.

Shares of Anant Raj Limited was last trading in BSE at Rs. 609.60 as compared to the previous close of Rs. 600.60. The total number of shares traded during the day was 193892 in over 4356 trades.

The stock hit an intraday high of Rs. 612.00 and intraday low of 598.50. The net turnover during the day was Rs. 117147757.00.

Source : Equity Bulls

Keywords

AnantRaj INE242C01024 Demerger Restructuring Realty DataCenter