Anant Raj to Demerge Data Centre Arm into Separate Listed Entity in India

India’s Anant Raj Limited is set to demerge its data centre arm into a separately listed company, marking a significant move in the country’s growing digital infrastructure sector. The restructuring aims to create two focused businesses: one in real estate and infrastructure, and the other in digital infrastructure.

Anant Raj to Demerge Data Centre Arm into Separate Listed Entity

Anant Raj Limited currently operates 28 MW of IT load across its campuses in Manesar and Panchkula and is expanding its data center footprint across Haryana. The company aims to achieve a total capacity of 307 MW by FY32 across Manesar, Panchkula, and Rai, supported by a planned capital expenditure of approximately USD 2.1 billion.

The demerger is aimed at creating 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.

Benefits of the Proposed Demerger

The proposed demerger is 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. 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.

Market Impact and Details

• The proposed demerger 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.
• The group remains on track to achieve an installed IT load capacity of around 117 MW by FY28 across its strategic data center locations.
• Anant Raj also partnered with Orange Business, the French IT and telecom services provider, to deliver managed cloud services in India, further strengthening its integrated digital infrastructure offerings.

Key Takeaways

• Anant Raj Limited will demerge its data centre arm into a separately listed company, creating a dedicated digital infrastructure and cloud services company.
• The proposed demerger aims to facilitate independent market recognition of the Data Centre Business and enable eligible shareholders to participate directly in its future growth and value creation.
• The company aims to achieve a total capacity of 307 MW by FY32 across Manesar, Panchkula, and Rai, supported by a planned capital expenditure of approximately USD 2.1 billion.

FAQs

What is the purpose of the proposed demerger?

The proposed demerger aims to create two focused businesses: one in real estate and infrastructure, and the other in digital infrastructure. The demerger will facilitate independent market recognition of the Data Centre Business and enable eligible shareholders to participate directly in its future growth and value creation.

What are the benefits of the proposed demerger?

The proposed demerger is expected to enable the Data Centre Business to capitalize on the rapidly growing demand for digital infrastructure and cloud services in India. As an independent listed entity, the Company will be well-positioned to attract investments, pursue strategic partnerships, and capitalize on emerging opportunities in the digital infrastructure sector.

What are the next steps in the demerger process?

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

Conclusion

Anant Raj Limited’s decision to demerge its data centre arm into a separately listed company marks a significant move in the country’s growing digital infrastructure sector. The proposed demerger aims to create 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.

Investors and stakeholders are advised to monitor the progress of the demerger and stay informed about the latest developments in the digital infrastructure sector. With a planned capital expenditure of approximately USD 2.1 billion, Anant Raj Limited is set to achieve a total capacity of 307 MW by FY32 across Manesar, Panchkula, and Rai, making it a key player in the country’s digital infrastructure landscape.