Shares of Anant Raj Ltd experienced a decline, dropping by up to 4% to a low of Rs 708.40 on the NSE on Wednesday, October 8. This dip followed the company’s board decision to initiate a qualified institutional placement (QIP) of equity shares with a minimum price set at Rs 695.83 per share, representing a 5.5% discount relative to the previous closing price of Rs 736.
The floor price aligns with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as stated in a regulatory filing from October 7. Anant Raj noted that the final issue price will be determined in consultation with the appointed book-running lead managers.
QIP, or Qualified Institutional Placement, enables listed companies in India to swiftly raise capital by issuing equity or convertible securities to Qualified Institutional Buyers (QIBs) like banks and mutual funds. Established by SEBI in 2006, QIP streamlines fundraising by circumventing the extensive processes associated with traditional public offerings, allowing companies to access funds efficiently.
The stock has seen a significant rise over the past month, increasing by over 30%. This surge is attributed to reports that the government is considering a tax exemption of up to 20 years for data centre developers. If this incentive is implemented, it will be contingent on achieving targets related to capacity, energy efficiency, and job creation, potentially giving a substantial boost to the sector.
Recently, The Economic Times reported that Anant Raj expects revenue from its data centre and cloud services business to grow to around Rs 1,200 crore by 2026-27. Additionally, the company aims to expand its data centre business to nearly $1 billion (Rs 8,870 crore) by 2031-32, capitalizing on India’s burgeoning demand for data centres in the Asia-Pacific region, according to its managing director, Amit Sarin.
As of approximately 9:45 AM, Anant Raj shares were trading at Rs 711.40, reflecting a decrease of 3.3% from the previous close on the NSE. Notably, Anant Raj shares have appreciated by as much as 64% in the last six months.
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