Sify Infinit Launches India’s First Data Center IPO, Seeking Rs 3,700 Cr

Sify Infinit Spaces Launches ₹3,700 Crore IPO Bid Amidst Data Center Boom

New Delhi – October 22,2025 – Sify Infinit Spaces Limited,a prominent provider of data center colocation services in India,has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The Company is seeking to raise ₹3,700 crore through a combination of fresh equity issuance and an offer for sale.

initial Public Offering Details

The proposed IPO consists of two components: a fresh issue of shares amounting to ₹2,500 crore and an offer for sale (OFS) of shares worth ₹1,200 crore initiated by existing shareholders – Kotak Data Center Fund (₹643 crore) and Kotak Special Situations Fund (₹557 crore). The Company may also consider a pre-IPO placement of up to ₹500 crore, which would reduce the size of the fresh issue.

Strategic Use of Funds

Net proceeds from the fresh issuance will be strategically allocated towards key growth initiatives. Approximately ₹465 crore is earmarked for completing Tower B at the Chennai 02 data center, while ₹860 crore will fund the construction of Towers 11 and 12 at the Rabale Data Center in Navi Mumbai. Moreover, ₹600 crore will be used to repay existing borrowings and the remainder for general corporate purposes.

Company Overview & Market Position

Sify Infinit Spaces, a part of the Sify group which pioneered private internet services in the late 1990s, offers a extensive suite of data center services including colocation, interconnection, and build-to-suit solutions. As of March 31, 2025, the Company held a 15.26% market share of built IT capacity in India, according to the 1Lattice and C&W Report. Founded in 2000 with the launch of its first data center,Sify Infinit Spaces continues to leverage over three decades of experience to provide reliable and sustainable digital infrastructure.

Expansion and Infrastructure Capabilities

Currently, the company operates 14 data center facilities spanning six major Indian cities – Mumbai, Chennai, Noida, Hyderabad, Bengaluru, and Kolkata. These facilities boast a combined IT power capacity of 188.04 megawatts (MW) as of June 30, 2025. Notably, data centers in Mumbai and Bengaluru focus on cloud hosting, while those in Noida, Hyderabad, and Kolkata serve diverse enterprise workloads.

Rapid Capacity Growth & Key Clients

Between Fiscal Years 2023 and 2025, Sify Infinit Spaces considerably expanded its capacity by 95.41 MW, outpacing its competitors. Its client roster includes over 500 customers, notably three of the top four global Hyperscalers operating within India and seven of the ten largest Indian Banks, based on their 2024 revenue.

Key Financial Metrics (₹ Million)	Fiscal Year 2023	Fiscal Year 2025
revenue from Operations	10,213.40	14,283.65
EBITDA	4,126.06	6,342.46
EBITDA Margin	40.40%	44.40%
Profit After Tax (PAT)	966.86	1,263.60

Focus on AI & Sustainability

Sify Infinit Spaces is actively preparing for the growing demand for Artificial Intelligence-driven workloads. Three of its newest facilities-Rabale Tower 5, Chennai 02 Tower B, and Noida 02 tower B-have received certifications from NVIDIA for AI workloads and meet advanced cooling technology standards. These facilities have also achieved Indian Green Building Council Platinum ratings and TIA-942 rated 4 certifications, highlighting the company’s commitment to sustainability.

Did You Know? India’s data center market is projected for meaningful growth, with an expected Compound Annual growth Rate (CAGR) of 30.1-35.1% between Fiscal Years 2025 and 2030.

Pro Tip: investors should carefully review the DRHP, paying close attention to the Company’s debt levels and growth projections before making any investment decisions.

Vegesna Ananta Koti Raju leads the company. JM Financial Limited, CLSA India Private Limited, J. P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited, and Morgan Stanley India Company Private Limited are serving as the Book Running lead Managers for the issue.

The Growing Importance of Data Centers

Data centers are the bedrock of the modern digital economy, providing the essential infrastructure for cloud computing, data storage, and internet-based services. As businesses continue to digitize their operations and consumers rely increasingly on online platforms, the demand for data center capacity will only continue to rise. This trend is notably pronounced in emerging markets like India,where rapid economic growth and increasing internet penetration are driving strong demand for digital infrastructure.

Frequently Asked questions about Sify Infinit Spaces IPO

• What is a data center IPO? A data center Initial Public offering (IPO) is when a private data center company offers shares to the public for the first time, allowing investors to purchase ownership in the business.
• What factors are driving the growth of data centers in india? Factors include increasing internet penetration, the widespread adoption of cloud computing, and the rise of data-intensive applications like AI and machine learning.
• What are the key risks associated with investing in data center stocks? Risks include high capital expenditure requirements, competition from established players, and evolving technology standards.
• What is Sify Infinit Spaces’ competitive advantage? Its long-standing presence in the Indian market, combined with a focus on sustainable and AI-ready infrastructure, provides a competitive edge.
• What will the IPO funds be used for? the funds will be utilized to expand existing data center capacity, repay debts, and support general corporate activities.

What are your thoughts on the future of data centers in India? Share this article and leave a comment below!

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Sify Infinit IPO: India’s Data Center Revolution Takes Center Stage – A Deep Dive

Sify Infinit, a subsidiary of Sify Technologies, has officially launched India’s first Initial Public Offering (IPO) dedicated solely to the data center sector, aiming to raise Rs 3,700 crore (approximately $444 million). This landmark event signals a meaningful maturation of the Indian data center market and offers investors a unique possibility to participate in the burgeoning digital infrastructure landscape. This article provides a comprehensive overview of the Sify Infinit IPO, its implications, and what potential investors need to no.

Understanding the Sify Infinit IPO Details

The IPO, opening on [date – to be updated closer to launch, currently projected for late 2025], comprises a fresh issue of equity shares. Here’s a breakdown of key details:

* IPO Size: Rs 3,700 crore (fresh issue)

* Offer for Sale (OFS): No OFS component in this IPO.

* Price Band: [Price Band – to be updated closer to launch, expected range: Rs 200-220 per share]

* Lot Size: [Lot Size – to be updated closer to launch, likely 100 shares]

* Listing Exchange: BSE and NSE

* book Running Lead Managers: [List of Lead Managers – to be updated closer to launch, likely including prominent investment banks]

* Registrar: [Registrar Details – to be updated closer to launch]

The funds raised will be primarily utilized for:

1. Data Center Expansion: Funding the construction of new hyperscale data centers in key locations across India.
2. Debt Reduction: Partially repaying existing debt, strengthening the company’s financial position.
3. General Corporate Purposes: Supporting ongoing operations and future growth initiatives.

The Indian Data Center Market: A growth Story

India’s data center industry is experiencing explosive growth, driven by several key factors:

* Digital Conversion: Rapid adoption of cloud computing, e-commerce, and digital services across all sectors.

* Government Initiatives: Policies like “Digital india” and favorable regulations promoting data localization.

* Increased Data Consumption: Rising smartphone penetration, internet usage, and the proliferation of data-intensive applications.

* 5G Rollout: The nationwide rollout of 5G networks will further accelerate data generation and demand for data center infrastructure.

Currently, India has an estimated data center capacity of around 850 MW, projected to reach over 2000 MW by 2027. Major players in the Indian data center space include NTT Global Data Centers, Hiranandani Fortune 100, Web Werks, and now, with this IPO, Sify Infinit. The market is attracting significant investment from both domestic and international players.

Sify Infinit: A Key Player in the Ecosystem

Sify Infinit operates seven Tier III data centers across India, with a total operational capacity of approximately 270,000 sq. ft. and 72 MW of IT power. The company differentiates itself through:

* End-to-End solutions: Offering a comprehensive suite of services including colocation, managed services, cloud services, and network connectivity.

* Strategic Locations: Data centers strategically located in key metropolitan areas like Mumbai, Chennai, and Delhi.

* Focus on Sustainability: Increasingly incorporating green data center technologies and practices to reduce environmental impact.

* Strong Parentage: Backed by Sify technologies, a well-established player in the Indian IT services market.

sify Infinit’s revenue from operations has shown consistent growth, reflecting the increasing demand for its services. The company’s focus on high-value services and long-term contracts provides a stable revenue stream.

Investment Rationale: Why Consider the Sify Infinit IPO?

Several factors make the Sify Infinit IPO an attractive investment opportunity:

* First-Mover Advantage: Being the first pure-play data center IPO in India,Sify Infinit benefits from significant investor attention.

* High Growth Potential: The Indian data center market is poised for continued rapid growth, offering considerable upside potential.

* Strong Financial Performance: Sify Infinit has demonstrated consistent revenue growth and profitability.

* Experienced Management Team: The company is led by a seasoned management team with deep industry expertise.

* Focus on Innovation: Sify Infinit is actively investing in emerging technologies like edge computing and artificial intelligence to enhance its service offerings.

Risks and Considerations

Potential investors should also be aware of the risks associated with the IPO:

* Competition: The data center market is becoming increasingly competitive,with new players entering the fray.

* Regulatory Changes: Changes in government regulations related to data localization and cybersecurity could impact the industry.

* technological Obsolescence: Rapid advancements in technology require continuous investment in upgrades and innovation.

* Power and Water Availability: Data centers are energy and water-intensive, and ensuring reliable access to these resources can be a challenge.

* Economic Slowdown: A slowdown in the Indian economy could dampen demand for data center services.

Real-World Example: Sify’s Role in a Major E-commerce Platform

Sify Infinit provides colocation services to a leading Indian e-commerce platform.During peak seasons like Diwali and festive sales, the platform experiences a massive surge in traffic and transaction volumes. sify’s robust data center infrastructure and scalable services ensure seamless operation and prevent downtime, enabling the e-commerce platform to handle the increased load effectively. This demonstrates the critical role data centers play in supporting the growth of the digital economy.

Benefits of Investing in Data Center Infrastructure

Investing in data center infrastructure, through companies like Sify Infinit, offers several benefits:

* Long-Term Growth: The demand for data center services is expected to remain strong for the foreseeable future.

* Stable Returns: Data centers typically generate stable and predictable revenue streams.

* Diversification: Investing in the data center sector can diversify an investment portfolio.

* Exposure to Emerging Technologies: Data centers are at the forefront of innovation in areas like cloud computing, AI, and edge computing.

Practical Tips for IPO Investors

* Read the Draft Red Herring Prospectus (DRHP): Carefully review the DRHP to understand the company’s business, financials, and risks.

* Analyze Financial Statements: Assess the company’s revenue growth, profitability, and debt levels.

* Consider Industry Trends: Understand the dynamics of the data center market and the competitive landscape.

* Assess Valuation: Determine whether the IPO price is reasonable based on the company’s fundamentals and growth prospects.

* Consult a Financial Advisor: Seek professional advice before making any investment decisions.

Looking Ahead: The Future of data Centers in India

The Indian data center market is poised for continued expansion, driven by the country’s digital transformation and the increasing demand for data storage and processing. Companies like Sify Infinit are playing a crucial role in building the digital infrastructure that will power India’s future growth. The Sify Infinit IPO represents a significant milestone in the evolution of the Indian data center industry and offers investors a compelling opportunity to participate in this exciting growth story.Keywords: **data