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MarketsEconomic TimesJul 21, 2026· 1 min read

Anant Raj to Demerge Data Centre Unit, Eyeing Significant Capacity Expansion

Anant Raj will demerge its data centre and cloud business into Ashok Cloud Pvt Ltd, forming a new, separately listed digital infrastructure company. This move aims to unlock shareholder value and support an ambitious expansion to 307 MW by fiscal year 2032, while also strengthening its cloud services platform.

Anant Raj Ltd. has announced plans to demerge its data centre and cloud services division into a new, separately listed entity, Ashok Cloud Pvt Ltd. This strategic unbundling is primarily aimed at unlocking enhanced shareholder value and facilitating aggressive expansion within the burgeoning digital infrastructure sector. The demerger will enable the new pure-play data centre company to pursue its growth objectives independently, supported by dedicated capital allocation and strategic focus. Anant Raj projects a substantial increase in its data centre capacity, targeting an expansion to 307 megawatts (MW) by fiscal year 2032. This ambitious target underscores the company's commitment to capitalizing on the robust demand for data storage and processing services driven by digital transformation across industries. Beyond physical infrastructure, the newly formed Ashok Cloud will also focus on strengthening its cloud services platform. This integrated approach aims to provide comprehensive digital solutions, positioning the company as a key player in India's rapidly expanding digital economy. The demerger is expected to provide greater clarity for investors seeking exposure specifically to the data centre and cloud computing segments, potentially attracting specialized capital and improving market valuation for both entities.

Analyst's Take

This demerger, while seemingly sector-specific, signals a broader capital markets trend towards specialized investment vehicles for high-growth digital infrastructure. We might see a re-rating of Anant Raj's core real estate assets as the market removes the 'conglomerate discount,' potentially freeing up capital for further development. The timing suggests companies are optimizing structures ahead of an anticipated acceleration in enterprise cloud adoption and AI-driven data demand in emerging markets, which equity markets may not yet fully price into established multi-sector entities.

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Source: Economic Times