Sify's data centre unit set for $500 million IPO, likely to file DRHP in coming weeks: Details here

Sify Technologies’ data centre arm, Sify Infinit Spaces, is reportedly planning an initial public offering (IPO) in India to raise $500 million.

The company is expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the coming weeks, according to a Bloomberg report.

The company, backed by Kotak Private Equity Group, is considering selling both new and existing shares in the IPO. The deal would value Sify Infinit Spaces at approximately $3 billion.

Mint reported this development in February.

The company has appointed multiple bookrunners for the offering, including Kotak Mahindra Capital Co., Morgan Stanley, JPMorgan Chase & Co, Citic Securities Co and JM Financial Ltd.

The deliberations are ongoing and the plan may change,

The IPO comes amid a surge in demand for data centres, driven by the expansion of artificial intelligence, and India is no exception. The country’s data centre capacity is poised to grow by 77 per cent to 1.8 gigawatts in the next four years, according to a 2025 report by property consultant JLL.

According to an annual report, Sify Infinit Spaces is a significant player in the data centre market of India, operating 14 data centres across the country with a power capacity of about 188 megawatts. The company commissioned its first facility in 2000.

The company has previously raised 16 billion rupees ($182 million) in two rounds from Kotak’s Special Situations Fund and Kotak Data Center Fund through compulsory convertible debentures, according to rating agency ICRA Ltd.

Sify would be joining a growing list of companies tapping into the IPO market. Since January, Indian IPOs have raised over $8 billion, according to data compiled by Bloomberg. Jefferies Financial Group estimates that Indian companies will raise $18 billion in the second half of 2025.

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