1 week ago
Anant Raj’s Data Center Demerger Offers Promise, But Risks Remain
Anant Raj owns both property projects and data centers.
It wants to place the data-center business into a separate company called Ashok Cloud.
Investors may value each business more accurately when they trade separately.
The data-center business is still small in revenue but produces a large share of the group’s profit.
The company plans to increase capacity from 28 MW to 357 MW by FY32.
However, reaching those targets will require substantial construction, customers and spending.
Critics question whether its low construction costs and high margins can continue.
The process also needs approvals and could take 18 to 24 months.
The demerger may create value, but its success depends mainly on execution and continued growth.
Anant Raj’s board approved a scheme to separate its data-center and cloud business into Ashok Cloud on 21 July 2026.
The company’s stock has risen 227% in three years as real estate and data-center operations expanded.
Anant Raj reported ₹2,511.60 crore revenue and ₹554.85 crore attributable profit in FY26.
The data-center business had 28 MW operational capacity and contributed a disproportionate share of EBITDA and profit.
Shareholders are slated to receive Ashok Cloud shares on a 1:1 basis, but Anant Raj would retain about 51% ownership.
- Who
- Anant Raj Limited and its wholly owned data-center subsidiary, Anant Raj Cloud Private Limited, are involved; the new company will be Ashok Cloud Private Limited.
- What
- The board approved a composite scheme to consolidate and then demerge the data-center and cloud undertaking into a separately listed company.
- Where
- The real-estate assets are concentrated primarily in Gurugram and Delhi-NCR, while data centers operate in Manesar and Panchkula, Haryana, with expansion planned in Rai.
- When
- The board approved the scheme on 21 July 2026; final listing could take at least 18 to 24 months.
- Why
- The stated goal is to separate businesses with different growth rates, capital needs and investor bases, potentially reducing the conglomerate discount.
Potential Value Unlock
Execution and Governance Risks
Separate valuations
Potential Value Unlock
Separating a high-growth data-center business from cyclical real estate could attract specialized investors and analysts and reduce the conglomerate discount.
Execution and Governance Risks
Because Anant Raj would retain about 51% of Ashok Cloud, the parent may not receive full market credit for its subsidiary, creating a holding-company discount.
Data-center growth
Potential Value Unlock
The company reports 28 MW operational capacity, government and enterprise credentials, and a roadmap to 357 MW by FY32, supporting a potentially higher valuation.
Execution and Governance Risks
The targets are ambitious, near-term timelines have slipped, and only about 8 MW of the 28 MW was fully handed over as of Q2 FY26, according to the article.
Business economics
Potential Value Unlock
Brownfield conversions reportedly cost about ₹26 crore per megawatt, below the stated industry norm, while the data-center segment has generated high margins and a large share of EBITDA.
Execution and Governance Risks
The low capital-cost claims and unusually high margins may not persist as staffing, security and service costs increase; margins could move toward established-operator levels.
Key facts
- Stock performance
- Anant Raj’s stock is up 227% over three years.
- FY26 revenue
- ₹2,511.60 crore consolidated revenue.
- FY26 attributable profit
- ₹554.85 crore attributable net profit.
- Operational data-center capacity
- 28 MW: 21 MW at Manesar and 7 MW at Panchkula.
- Capacity target
- Management targets 63 MW in FY27, 117 MW in FY28 and 357 MW by FY32.
- Share entitlement
- The proposed ratio is one Ashok Cloud share for every one Anant Raj share.
- Ownership after demerger
- Anant Raj is expected to retain roughly 51% of Ashok Cloud, with public shareholders holding about 49% directly.
- Estimated process timeline
- The article estimates 18 to 24 months from board approval to final listing.
Sources
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