Anant Raj board approves demerger to create separate listed digital infrastructure business

The proposed restructuring will separate Anant Raj’s data centre and cloud services operations from its real estate business, creating two independently listed companies with distinct growth strategies, subject to regulatory, shareholder and judicial approvals.

Anant Raj Limited (ARL) has approved a Composite Scheme of Arrangement to separate its fast-growing data centre and cloud services business from its core real estate and infrastructure operations. The proposal, cleared by the company's Board of Directors under Sections 230 to 232 of the Companies Act, 2013, is aimed at creating two independently focused listed companies with separate business strategies and growth trajectories.

Under the proposed restructuring, Anant Raj will first consolidate all its data centre and cloud operations under a single entity before demerging them into Ashok Cloud Pvt Limited. The new company will function as a dedicated digital infrastructure and cloud services business and is proposed to be listed independently, while Anant Raj Limited will continue to focus on its established real estate and infrastructure portfolio.

Two businesses with distinct strategic focus

Following completion of the scheme, Anant Raj Limited will continue operating its real estate and infrastructure businesses, including residential townships, luxury housing, commercial developments and hospitality projects. The company said it will remain focused on strengthening its presence in India's real estate sector through continued execution and long-term expansion.

Ashok Cloud Pvt Limited, meanwhile, will operate as a standalone digital infrastructure company, offering data centres, co-location services, sovereign public cloud solutions, AI-ready cloud infrastructure, disaster recovery and cloud migration services, data backup solutions and other allied offerings. The company expects the new structure to position the business to capitalise on increasing demand for digital infrastructure and cloud services in India.

Commenting on the development, 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 well-positioned 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."

Restructuring aims to unlock shareholder value

According to the company, the demerger reflects the evolution of its real estate and digital infrastructure businesses into distinct verticals with different capital requirements, operating models and growth opportunities.

The proposed transaction is expected to provide dedicated management teams for each business, enable independent strategic direction, simplify the corporate structure by consolidating all cloud-related operations under one entity and create greater flexibility for the digital infrastructure business to attract strategic investors, partnerships and growth capital. The company also believes the restructuring will allow investors to independently evaluate and value the two businesses.

Shareholders to receive shares in Ashok Cloud

As part of the proposed arrangement, eligible shareholders of Anant Raj Limited will receive one fully paid-up equity share of face value ₹2 each in Ashok Cloud Pvt Limited for every one fully paid-up equity share of face value ₹2 each held in Anant Raj Limited.

The company clarified that the scheme will not result in the cancellation of Anant Raj Limited's existing shareholding in Ashok Cloud Pvt Limited, which will continue to remain its subsidiary.

The Composite Scheme remains subject to approvals from the National Company Law Tribunal (NCLT), the Securities and Exchange Board of India (SEBI), stock exchanges, shareholders, creditors and other statutory and regulatory authorities before it becomes effective.