Anant Raj demerger: Data centre spin-off plan for 2026

What the board has approved

Anant Raj Ltd, a Delhi-based real estate developer, has approved a composite scheme of arrangement to separate its data centre and cloud services business into a separately listed company, Ashok Cloud Pvt Ltd. The proposal marks a formal step to split two businesses that the company says now operate at a larger scale and require different management focus. In regulatory disclosures, Anant Raj also indicated that keeping both businesses under a single corporate entity does not fully reflect the intrinsic value of each segment. The company has positioned the move as a way to sharpen strategic focus and unlock long-term shareholder value.

Alongside the scheme, Anant Raj has constituted a committee to evaluate the demerger proposal and recommend an approach to the board. The committee is expected to review the merger-demerger structure, options, and strategy and then place a final proposal before the board for a decision. The company has also appointed Anish Sarin, grandson of Ashok Sarin, as a Director.

Why Anant Raj says it wants two focused businesses

In its statement, the company linked the demerger decision to the “growing scale” and “future growth prospects” of both segments, as well as their “capital-intensive” nature. Anant Raj said it is “imperative to segregate them into independent entities with dedicated management teams and focused leadership.” It added that the split should improve operational efficiency and enable each business to pursue independent strategies for growth, funding, and capital allocation.

The company also flagged that the two segments carry different risk profiles and capital requirements. That difference, in its view, supports the case for separating them into independent entities rather than running them inside a single listed company. The demerger is being framed as a structural decision, rather than a change to the underlying operating intent of either business.

Committee structure and decision-making process

Anant Raj has said a dedicated committee comprising top management, including the Managing Director and Chief Financial Officer, has been formed to evaluate the optimal structure for the demerger. In another disclosure, the company said the committee is led by Managing Director Amit Sarin.

The committee has also been authorised to seek help from domain experts, directors, senior management, and external advisors, if required, to frame a final proposal for the board. The language in the company’s statement suggests the board will take the final decision after receiving the committee’s recommendation. This process-driven approach is significant because the eventual structure can shape how assets, liabilities, and funding plans are allocated between the listed entities.

Expansion plans that raise the stakes

The demerger plan comes alongside an aggressive scale-up target in the data centre business. Anant Raj has said it is committing Rs 20,000 crore to expand data centre capacity to 357 MW IT Load. The company has also described its financial position as having improved, referring to “significant financial growth” and a strengthened balance sheet.

While the company did not provide quarterly or annual profit numbers in the provided disclosures, it did disclose shareholder distributions. For the quarter and year ended March 31, 2026, the board recommended a final dividend of 50 percent, amounting to Re 1 per equity share, subject to shareholder approval at the upcoming Annual General Meeting.

What is known about Ashok Cloud Pvt Ltd

The company has identified Ashok Cloud Pvt Ltd as the vehicle into which the data centre and cloud services business will be carved out, with the intent of having it separately listed. Beyond the naming and listing intent, specific operational details such as asset boundaries, contracts to be transferred, and the timeline for regulatory steps were not included in the provided text.

What is clear from the company’s filings is the stated objective: to allow the data centre and cloud segment to pursue its own growth and capital strategy without being tied to the real estate business’s capital allocation priorities. The company’s rationale also implies that the market may be better able to value the two segments independently once they are structurally separated.

Market and investor relevance

A demerger can matter for investors because it changes how business risks and cash flows are grouped inside a listed company. Anant Raj’s reasoning focuses on the idea that a combined structure may not reflect the “true potential and intrinsic value” of each segment. If the demerger proceeds, investors would be able to track each segment’s financial and operating progress more directly through separate disclosures.

The company has also linked the rationale to efficiency, management focus, and funding flexibility. For capital-heavy segments such as data centres, access to targeted funding structures can be an important consideration, and the company has explicitly referenced funding and capital allocation as potential benefits of separation.

A look back: Anant Raj’s earlier demerger and listing precedent

Anant Raj has previously executed a major restructuring through a composite scheme of arrangement. In that earlier scheme, the National Company Law Tribunal (NCLT), Chandigarh Bench approved a composite scheme on August 24, 2020, with an effective date of August 25, 2020. The appointed date for that scheme was September 30, 2018, and the date of allotment was October 08, 2020.

Under the scheme, the project division of Anant Raj Ltd was demerged into Anant Raj Global Ltd as a going concern, along with assets, liabilities, contracts, employees, and related approvals. As part of the consideration, Anant Raj Global issued and allotted shares to shareholders of Anant Raj Ltd in the proportion of 1 equity share of Rs 2 each of Anant Raj Global for every 1 equity share of Rs 2 each held in Anant Raj Ltd. The equity shares of Anant Raj Global were listed on BSE and NSE with effect from December 18, 2020.

Key facts at a glance

Timeline reference: earlier scheme milestones (for context)

What to watch next

The next steps depend on the committee’s recommendation and the board’s final decision on the demerger structure. Investors will also watch for additional disclosures on the scope of the transferred undertaking, the proposed share entitlement ratio for shareholders, and the regulatory and shareholder approval roadmap.

For now, the company’s stated intent is clear: separate the real estate development and the data centre and cloud services operations so each can run with its own management focus, funding strategy, and capital allocation priorities, with Ashok Cloud positioned as the separately listed vehicle for the technology infrastructure business.