Sify Infinite Spaces, the data centre division of Nasdaq-listed Sify Technologies Ltd., is planning to raise ₹3,000 crore through an initial public offering (IPO) in India, as reported by sources familiar with the situation. The company has engaged investment banks to assist with the IPO process, and it is anticipated that Kotak Private Equity will divest its stake as part of the offer for sale. Sify Infinite, one of the pioneering data centre firms in India, aims to go public in the upcoming financial year and is expected to submit its draft prospectus to the Securities and Exchange Board of India (Sebi) by the next quarter.
The firm has previously secured ₹1,600 crore in funding from Kotak Special Situations Fund and Kotak Data Center Fund. A spokesperson for Sify Infinite stated that the company is exploring various funding avenues for its data centre operations and will keep the market updated as necessary.
The move to go public underscores the growth of India’s data centre sector, which is experiencing a surge due to the expanding digital economy. The India Brand Equity Foundation forecasts that the sector will more than double to $11.6 billion by 2032, with a compound annual growth rate of 10.98%. Major players in this market include NTT Global, Microsoft, Cisco, Reliance Communications, and Brookfield.
Sify Infinite, a wholly owned subsidiary of Sify Technologies, has over 20 years of experience in providing colocation services, allowing clients to house their own servers in shared facilities. The company operates 12 tier-III data centres with a total capacity of around 110 MW, with seven located in Mumbai and one each in Noida, Chennai, Bengaluru, Kolkata, and Hyderabad. High customer retention in the data centre business, due to significant investment commitments and risks associated with downtime during transitions, ensures strong revenue visibility for Sify Infinite. However, the company’s revenue growth slowed to approximately 9% in FY24, down from 35% in FY23, influenced by delays in operationalizing new capacity.
