Anant Raj climbs 5%; hits new high on allotment of warrants to promoters

The company has approved the allotment of 1.37 million fully convertible warrants at an issue price of Rs 730 per warrant, for cash, for an aggregate amount of Rs 100 crore on a preferential basis

Anant Raj shares hit a new high of Rs 824, gaining 5 per cent on the BSE in Tuesday’s intra-day trade in an otherwise subdued market after the company approved the allotment of 1.37 million convertible warrants worth of Rs 100 crore to its promoter Shri Ashok Sarin Anant Raj LLP.  The stock of the real estate company has rallied 9 per cent in two days. In comparison, the BSE Sensex was down 0.4 per cent at 81,429 at 09:35 AM.

 

In an exchange filing, Anant Raj said that upon receipt of 25 per cent of the total amount payable towards subscription of the warrants from all the allottees, the Finance and Investment Committee of the Board of Directors of the company at their meeting held on Monday December 16, 2024, has approved the allotment of 1.37 million fully convertible warrants at an issue price of Rs 730 per warrant, for cash, for an aggregate amount of Rs 100 crore on a preferential basis. Each warrant will be convertible into one equity share.

 

 

The board of directors also approved a placement of up to Rs 2,000 crore by way of qualified institutional placement (QIP), subject to necessary approvals. The company has plans to invest around Rs 1,000 crore to develop a total of four projects across Gurugram, Delhi, and Tirupati.

 

Anant Raj is engaged in real estate development (residential and commercial) in the National Capital Region (NCR), Rajasthan and Haryana. The company continues to significantly reduce its debt and expects to be net debt free by the end of the calendar year 2024.

 

Meanwhile, thus far in the month of December, Anant Raj has rallied 22 per cent, as compared to the 2 per cent rise in the BSE Sensex. Thus far in the calendar year 2024, the stock has zoomed 175 per cent, as against the 12.66 per cent gain in the benchmark index.

 

According to Emkay Global Financial Services, access to land and ready-made civil structures position the company well for cost and time advantage over peers. Profitability is higher and ranges between 75 per cent and 80 per cent EBITDAM (earnings before interest, tax, depreciation and amortisation margin), which bodes well for a robust consolidated PAT growth and strong OCF generation, the brokerage firm said, with a ‘buy’ rating on the stock and target price of Rs 925 per share.

 

Anant Raj has 220 acres of land parcels in total at Golf Course Extension Road (Sector 63A, Gurugram, Haryana); a significant (~120 acres) portion of this has yet to be developed and sold (comprises ongoing and planned projects). Also, another approximately 101 acres of land bank that it holds in Delhi could have a development potential of approximately 12msf (depending on the master plan; current potential at 6msf).

 

Further, a strong launch pipeline of approximately Rs 7,000 crore has already been planned. Land availability offers GDV (gross development value) potential of an additional Rs 10,000 crore, to be planned in Sector 63A. Further, around 101 acre of the Delhi land bank and scope to add around 50 acres of land in Sector 63A (20 acres already acquired) would improve launch visibility.

 

A renowned and seasoned player in the real estate business, the company has now chalked out aggressive plans in the data center and cloud spaces. At present, Anant Raj has 6MW (location: Manesar) operational DC capacity and is progressing well for commissioning an incremental 22MW capacity by end-FY25.  Anant Raj plans to rapidly scale up its data-center business, with capacity likely to increase to 307MW in the next 4-5 years (it made the foray in FY23). This would comprise 25 per cent/75 per cent share of cloud/co-location services, respectively, the brokerage firm said.