Kotak Mahindra Group-backed data center firm Sify Infinit Spaces files IPO papers to raise up to Rs 3,700 cr

Sify Infinit Spaces IPO News

Kotak Mahindra Group-backed Sify Infinit Spaces, one of the top 3 providers of data center colocation services in India in terms of built IT capacity, has filed draft papers with the SEBI to raise funds up to Rs 3,700 crore via initial public offering (IPO).

The Sifty Technologies-promoted company proposed to issue fresh shares worth Rs 2,500 crore, while investors Kotak Data Center Fund, and Kotak Special Situations Fund will be offloading shares worth Rs 1,200 crore via offer-for-sale.

Kotak Data Center Fund, and Kotak Special Situations Fund, which have been investors in Sify since February 2022 and August 2023, own 6.19 percent and 5.36 percent stakes, respectively, in the company that offers a converged ecosystem of data center services, including colocation, build-to-suit, interconnection and value-added services.

Promoters' shareholding in the company stands at 88.45 percent at the time of filing DRHP on October 16.

The company may consider raising up to Rs 500 crore in pre-IPO round, which is a part of its fresh issue component.

Moneycontrol was the first to report earlier this month that Sify Infinit Spaces is preparing to file for a $500 million initial public offering in the next two weeks.

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Sify Infinit Spaces, which operates 14 interconnected data centers in 6 cities with a combined built IT power capacity of 188.04 MW, plans to spend Rs 465 crore of fresh issue proceeds for completion of tower B of data center in Siruseri, Chennai, and Rs 860 crore for setting up of towers 11 and 12 of data center in Rabale, Navi Mumbai.

Further, Rs 600 crore will be utilised for repaying of certain borrowings, and the remainder funds for general corporate purposes.

As of August 2025, the total outstanding borrowings of the company was Rs 2,265.9 crore.

The data center industry in India is among the fastest growing in the Asia-Pacific region (in terms of capacity), growing at a rate of 25.47 percent annually over the period 2021 to 2025, according to the 1Lattice and C&W Report.

Sify Infinit Spaces does not have comparable peer in the Indian listed space, competing with globally listed counterparts like Equinix, Digital Realty Trust, and NEXTDC.

On financial front, the company recorded net profit at Rs 126.4 crore for the fiscal year 2025, growing 35.5 percent over Rs 93.2 crore in previous year. Revenue in the same period increased by 28.2 percent to Rs 1,428.4 crore, up from Rs 1,114.2 crore. Profit for the quarter ended June 2025 stood at Rs 13.6 crore on revenue of Rs 398.6 crore.

The merchant bankers handling the Sify Infinit Spaces IPO are JM Financial, CLSA India, JP Morgan India, Kotak Mahindra Capital Company, and Morgan Stanley India Company.