Anant Raj Share Price Surge 7% Following MoU with Google LLC

Shares of Anant Raj Ltd., a New Delhi-based real estate development company, surged by as much as 10% on Monday following the announcement that its subsidiary signed a Memorandum of Understanding (MoU) with Google LLC.

As of 09:24 am IST, Anant Raj share price were trading at ₹504.40, up ₹23.20 or 4.82%, on the BSE. The stock is currently 8.61% below its 52-week high of ₹551.95, achieved on July 9, 2024, and 178.91% above its 52-week low of ₹180.85, recorded on August 11, 2023.

Anant Raj Cloud, the company's wholly-owned subsidiary, has entered into an MoU with Google LLC to collaborate on providing Data Center Infrastructure, DC Managed Services, and Cloud Platform solutions for both public and private enterprises. The collaboration aims to develop innovative technological solutions tailored for potential customers, focusing on data infrastructure, productivity, and security enhancements.

The MoU did not disclose any financial details or a timeline. At the end of the June quarter, promoters held a 60% stake in Anant Raj, while India's domestic institutions held approximately 4.5%.

The company plans to transform its 5.66 million square feet of commercial property into a 157 MW data center. It anticipates earning ₹3,300 crore in rentals once fully operational and is investing ₹10,000 crore to develop a 300 MW data center.

India generates about 20% of the world's data but holds only a 3% share of global data center capacity. According to CareEdge Ratings, the country's under-penetration in the sector, combined with various demand catalysts, indicates significant potential for large-scale capacity additions in the coming years. Such expansions could benefit companies like Anant Raj Ltd., Adani Enterprises Ltd., Reliance Industries Ltd., Blue Star Ltd., Bharti Airtel Ltd., and Exide Industries Ltd.

India's internet user penetration is the lowest compared to China, the US, and the European Union, yet it has the highest mobile data consumption. With just 1 megawatt of data center capacity per million internet users, compared to 4 MW per million users in China, India shows considerable room for growth.

CareEdge projects a robust growth phase for India's data center capacity, expecting it to double to 2,000 MW by 2026. This growth is anticipated to attract investments of ₹50,000 crore over the next three years, indicating a promising future for the industry.

Anant Raj Limited operates primarily in the real estate and infrastructure development sector in India. The company is involved in developing and constructing residential townships, group housings, commercial developments, IT parks, malls, office complexes, affordable housing projects, data centers, hospitality ventures, and serviced apartments. Initially known as Anant Raj Industries Limited, the company rebranded to Anant Raj Limited in October 2012. Founded in 1969, Anant Raj Limited is headquartered in New Delhi, India.