Shares of Anant Raj Ltd came under pressure to fall as much as 4% to their day’s low of Rs 708.40 on the NSE on Wednesday, October 8, after the company’s board approved the opening of a qualified institutional placement (QIP) of equity shares with a floor price of Rs 695.83 per share. The floor price is at a 5.5% discount to the previous close of Rs 736.
The floor price has been determined in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, the company said in a regulatory filing on October 7. The issue price will be finalised in consultation with the book-running lead managers appointed for the offering, Anant Raj further added.
QIP, or Qualified Institutional Placement, is a method used by listed companies in India to quickly raise capital by issuing equity or convertible securities to Qualified Institutional Buyers (QIBs), such as banks, mutual funds, and insurance companies. Introduced by the market regulator Securities and Exchange Board of India (SEBI) in 2006, QIP simplifies fundraising by bypassing the extensive processes and compliance requirements of other public offerings, allowing companies to access funds more efficiently.
The stock has seen a sharp run-up in the last month, rising by more than 30%. The gains come after reports suggested that the government is considering a tax exemption of up to 20 years for data centre developers. The incentive, if implemented, would be linked to targets for capacity addition, energy efficiency, and job creation, potentially providing a major boost to the sector.
Last week, The Economic Times reported that the real estate developer expects revenue from its data centre and cloud services business to increase to about Rs 1,200 crore by 2026-27 and plans to scale up its data centre business to nearly $1 billion (Rs 8,870 crore) by 2031-32 as India is expected to lead the data centre demand in the Asia-Pacific region, said its managing director Amit Sarin.
At about 9:45 am, shares of the company were trading at Rs 711.40, lower by 3.3% from the previous closing price on the NSE. Anant Raj shares have rallied as much as 64% in the last 6 months.
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