Anant Raj demerger approved: Two listed companies to emerge, shareholders to get shares in Ashok Cloud - What it means for investors

Anant Raj demerger approved: Anant Raj Ltd has announced a strategic demerger plan under which its real estate and infrastructure business will continue under Anant Raj Ltd, while its data centre, cloud services and AI-ready cloud infrastructure business will be separated into a new company, Ashok Cloud Pvt Ltd.

According to an exchange filing, the company has said that eligible shareholders of Anant Raj Ltd will receive one equity share of Ashok Cloud, with a face value of Rs 2, for every one equity share of Anant Raj, also having a face value of Rs 2.

The scheme has been approved under Sections 230 to 232 of the Companies Act, 2013 and is subject to necessary statutory, regulatory and judicial approvals, including those from the National Company Law Tribunal (NCLT), SEBI, stock exchanges, shareholders, creditors and other applicable authorities.

"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," said Amit Sarin, Managing Director, Anant Raj Ltd.

Under the proposed structure, the demerger is intended to result in two independent listed companies.

The existing Anant Raj Ltd will continue to house the company's core real estate and infrastructure operations. The demerged business, Ashok Cloud Pvt Ltd, will house the data centre, cloud services and AI-ready cloud infrastructure operations and is proposed to be listed separately, according to exchange filing.

Existing Anant Raj shareholders to receive Ashok Cloud shares

Eligible shareholders will receive one share of Ashok Cloud for every one share of Anant Raj held as per the applicable record date and scheme terms.

For example, if an eligible shareholder holds 1,000 shares of Anant Raj, the shareholder will be entitled to receive 1,000 shares of Ashok Cloud, subject to the final terms of the approved scheme.

Anant Raj demerger: What investors should watch now

For existing shareholders, the key development is the proposed 1:1 share entitlement, under which eligible investors will receive one Ashok Cloud share for every one Anant Raj share held.

Investors should now watch for further details regarding the scheme of arrangement, record date, regulatory and shareholder approvals, demerger effective date and the proposed listing timeline for Ashok Cloud.

(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience consult their financial advisors before making any money-related decisions.)