Anant Raj Shares Surge 10% Following Clarification on AI Impact

Anant Raj share price rose by 10% to ₹587.85, reaching the upper circuit limit on the BSE during the intraday session. This surge came after the company clarified its business model in response to concerns about the growing influence of AI technology, particularly a low-cost AI model introduced by DeepSeek, a Chinese company.

Company’s Clarification

On January 28, Anant Raj issued a clarification stating that it remains focused on real estate and data centre infrastructure. The company’s primary revenue comes from real estate development and its data centre services, including colocation and Infrastructure as a Service (IaaS) for cloud solutions.

Data Center Industry Growth

Anant Raj acknowledged the rapid growth of India’s data centre capacity, which is driven by digitisation and data localisation trends. Despite India’s large share of global data, there is still significant under-penetration of data centres in the country. The company believes that the growing demand for data centre infrastructure will benefit its business, particularly as the global data surge, partly fueled by AI, drives demand for more data centres.

Impact of AI on Data Centers

The company sees AI tools increasing the need for data processing, which will boost demand for data centres. Additionally, as AI applications move closer to end-users through smartphones and IoT devices, a growing need for distributed computing infrastructure will increase demand for data centers.

No Impact on Real Estate Operations

Anant Raj clarified that developments in AI do not affect its real estate business. The company also assured investors that its focus on colocation in data centres, with continued capital expenditures to improve rack-level capacity, remains unchanged.

Anant Raj highlighted its new sovereign cloud offering, ‘Ashok Cloud,’ which focuses on IaaS without AI elements. The company clarified that it does not provide Platform as a Service (PaaS) or Software as a Service (SaaS), so AI advancements won’t affect its services.

Anant Raj share price is trading at ₹580.80 as of 12:16 PM on January 29, 2025, reflecting an increase of ₹46.30 (8.66%). The stock opened at ₹567.00, reached a high of ₹587.95, and a low of ₹542.65. The company has a market capitalisation of ₹19.86K crore, a P/E ratio of 55.63, and a dividend yield of 0.13%. Its 52-week high is ₹947.90, and the 52-week low is ₹281.00.

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