Shares of Anant Raj Ltd surged over 6% on Tuesday after the company issued a clarification regarding its business model, following a sharp decline in the previous session triggered by concerns over AI advancements impacting the data center industry.
Company’s Clarification and Market Reaction
Anant Raj, a real estate and data center infrastructure company, responded to media speculation by stating that AI advancements would not negatively impact its data center business. The firm emphasized that the demand for data center infrastructure is expected to grow significantly due to increasing digitization and data localization trends in India.
“As AI applications move closer to the end user, the demand for distributed computing infrastructure will rise. We believe this trend will drive the need for more data centers, not fewer,” the company said in its filing.
This clarification helped Anant Raj’s stock recover after falling nearly 20% on Monday, when global concerns about a low-cost Chinese AI model fueled a sell-off in technology-related stocks.
Business Focus and Growth Prospects
The company reiterated that its core business remains focused on real estate development and data center infrastructure. It also clarified that:
- Its real estate offerings remain unaffected by AI developments.
- It is focused on colocation services, with ongoing capital expenditure directed at enhancing data center rack-level capacity.
- The firm does not offer Platform as a Service (PaaS) or Software as a Service (SaaS) and does not expect AI advancements to impact its business.
Stock Performance
Following this reassurance, Anant Raj’s stock climbed 6.39% to ₹568.65 on the NSE, recovering from the previous session’s sharp losses. The market cap now stands at ₹194.42 billion, with a P/E ratio of 54.60.
