Anant Raj Board Approves Demerger

to Carve Out Data Centre and Cloud Services Business

Report By Y-Trendz

New Delhi, July 22, 2026 — Real estate and digital infrastructure company Anant Raj Limited has approved a composite scheme of arrangement to demerge its data centre and cloud services business

into a separately listed entity, a move the company says will unlock independent market value for one of India's fastest-growing digital infrastructure platforms while allowing its legacy real estate operations to be run as a standalone business.

The Scheme: How It Works

The board approved the composite scheme on July 21, 2026, structured in two stages. First, Anant Raj Cloud Private Limited (ARCPL) — a wholly owned subsidiary that currently houses part of the company's data centre operations — will be amalgamated into Anant Raj Limited itself. Once that merger is complete, the entire data centre and cloud services undertaking, now consolidated within the parent company, will be transferred and demerged into Ashok Cloud Private Limited (ACPL), which will emerge as an independent, separately listed company dedicated to digital infrastructure.

Under the terms of the arrangement, every shareholder of Anant Raj Limited will receive one fully paid-up equity share of face value ₹2 in Ashok Cloud Private Limited for each share they hold in Anant Raj Limited. Importantly, the scheme does not cancel Anant Raj Limited's existing shareholding in Ashok Cloud; the parent company will continue to hold a stake in the demerged entity even after the restructuring takes effect. Once completed, Ashok Cloud's shareholding pattern is expected to comprise 79.14 percent held by promoters and 20.86 percent held by the public, while Anant Raj Limited's own shareholding pattern will remain unchanged, with promoters holding 57.42 percent and the public holding the remaining 42.58 percent.

The scheme has been approved under Sections 230 to 232 of the Companies Act, 2013, and remains subject to a lengthy list of statutory, regulatory and judicial approvals before it can take effect, including sign-off from the BSE Limited, the National Stock Exchange of India (NSE), the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT), the company's shareholders, and its creditors. Given the scale of these approvals, the demerger is expected to take several months to formally complete.

Why the Company Is Splitting Itself in Two

Anant Raj Managing Director Amit Sarin framed the restructuring as a natural next step for two businesses that have effectively outgrown a shared corporate structure. "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," Sarin said. "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."

Sarin added that by bringing together the data centre and cloud operations currently split across Anant Raj Limited and Anant Raj Cloud Private Limited under a single roof, the company is creating "a more focused and scalable platform that will be well-positioned to attract investments, pursue strategic partnerships, and capitalize on emerging opportunities in the digital infrastructure sector." He said the demerger is also expected to facilitate independent market recognition of the data centre business, allowing investors to value the digital infrastructure arm on its own merits rather than as a smaller component buried inside a larger, diversified real estate balance sheet — while giving eligible shareholders a direct stake in its future growth.

Following the restructuring, Anant Raj Limited will continue to concentrate on its core real estate and infrastructure development business — spanning residential, commercial, hospitality and IT park projects across Delhi, Haryana, Andhra Pradesh, Rajasthan and other parts of the National Capital Region — while Ashok Cloud Private Limited will operate as a dedicated data centre and cloud services company.

A Business Built Up Over Several Years

The demerger caps a multi-year push by Anant Raj to establish itself as a serious player in India's data centre and sovereign cloud market, capitalizing on the country's growing demand for data localization and digital infrastructure. The company has steadily invested in its data centre subsidiaries, including a ₹4,500-crore memorandum of understanding signed by Anant Raj Cloud with the Andhra Pradesh Economic Development Board in November 2025 for new data centre facilities and an IT park in the state, a project expected to generate roughly 8,500 direct and 7,500 indirect jobs.

Just a day before the demerger announcement, on July 20, the Finance and Investment Committee of Anant Raj's board approved a fresh ₹74.86-crore investment in Ashok Cloud through a rights issue, to be used to fund the subsidiary's data centre and cloud infrastructure development. The rights issue will see Ashok Cloud allot more than 37.4 crore equity shares at a face value of ₹2 each, expanding the subsidiary's paid-up equity capital from ₹5 lakh to roughly ₹74.9 crore. Because the investment was made into a wholly owned subsidiary, Anant Raj's ownership of Ashok Cloud remained unchanged at 100 percent immediately following that allotment — a stake that will now be diluted through the broader demerger and listing process.

Anant Raj shares responded positively to the rights issue news, with the stock climbing to around ₹600.50 as of mid-afternoon trading on July 20, up 1.42 percent from the previous close, after recovering from early profit-booking. Analysts have pointed to the company's data centre ambitions as a key re-rating driver: brokerages have previously flagged Anant Raj's plans to scale data centre capacity from roughly 28 megawatts to 63 megawatts by December 2026, and further to 117 megawatts by fiscal year 2027-28, alongside a longer-term target of building out up to 300 megawatts of data centre capacity over four to five years. The company has also partnered with telecom major Orange to offer cloud infrastructure-as-a-service (IaaS), with cloud capacity expected to reach roughly 25 percent of the business by fiscal year 2032.

What Comes Next

The composite scheme will now proceed through the standard Indian corporate restructuring process, including filings with stock exchanges and regulators, creditor and shareholder meetings, and final approval from the National Company Law Tribunal before the demerger can be formally implemented and Ashok Cloud shares can be listed and allotted to existing Anant Raj shareholders. Market participants will be watching closely for further disclosures on the specific data centre assets, capacity commitments and financial metrics being transferred into the new entity, as well as for any strategic investment or partnership announcements that the standalone listing of the digital infrastructure business could unlock.

The demerger positions Anant Raj alongside a broader wave of Indian companies moving to separate high-growth digital infrastructure and technology-linked businesses from legacy operations in order to secure standalone market valuations — a pattern investors have increasingly rewarded in recent years as data centre and cloud demand accelerates across the country.