Sify Infinit Spaces Files ₹3,700 Crore DRHP with SEBI: India’s First Data Center IPO Signals Sectoral Maturity
- Data Center Association of India (DCAI)
- Oct 18
- 2 min read
In a landmark move for India’s digital infrastructure landscape, Sify Infinit Spaces Ltd., a subsidiary of Sify Technologies and a leading data center colocation provider, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹3,700 crore through an Initial Public Offering (IPO). This marks the first-ever IPO by a pure-play data center company in India, underscoring the sector’s growing strategic importance amid surging demand for cloud services, AI workloads, and enterprise digitization.
IPO Structure and Financial Breakdown
Total Issue Size: ₹3,700 crore
Fresh Issue: ₹2,500 crore
Offer for Sale (OFS): ₹1,200 crore by existing investors
Kotak Data Center Fund: ₹643 crore
Kotak Special Situations Fund: ₹557 crore
Pre-IPO Placement Option: Up to ₹500 crore, which may reduce the fresh issue size if executed
Use of Proceeds: Strategic Expansion and Debt Reduction
Sify Infinit Spaces plans to deploy the IPO proceeds toward:
Data Center Expansion:
Completion of Tower B at Chennai 02 facility: ₹465 crore
Construction of Towers 11 and 12 at Rabale, Navi Mumbai: ₹860 crore
Debt Repayment: ₹600 crore
General Corporate Purposes and Working Capital: Remaining funds
This capital infusion will significantly enhance Sify’s capacity to serve hyperscalers, enterprises, and government clients, reinforcing its position in a market projected to grow at a CAGR of over 20% through 2030.
Company Profile and Sectoral Context
Sify Infinit Spaces operates 14 colocation data centers across India, offering services such as interconnection, build-to-suit infrastructure, and managed hosting. The company’s parent, Sify Technologies, was a pioneer in India’s internet services in the late 1990s and has since evolved into a full-stack ICT solutions provider.
The IPO arrives at a time when India’s data center industry is witnessing unprecedented momentum, driven by:
Digital India initiatives
5G rollout and AI adoption
Data localization mandates
Surging cloud and OTT consumption
According to market analysts, this IPO could catalyze further investments and listings in the sector, attracting institutional capital and boosting transparency.
Market Sentiment and Regulatory Oversight
SEBI’s acceptance of the DRHP reflects growing regulatory confidence in the data center vertical. The offering is expected to attract strong interest from domestic and global investors, especially given the sector’s resilience and long-term growth trajectory.
Industry experts view this IPO as a bellwether for India’s transition from a consumer of global digital infrastructure to a builder of indigenous capacity. It also aligns with national priorities under Digital India and Make in India, reinforcing sovereign data capabilities.
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