In a notable development for India’s data centre sector, Sify Infinit Spaces Ltd (SISL), a prominent provider of data centre colocation services, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in pursuit of a ₹3,700-crore initial public offering (IPO).
The proposed IPO features a fresh issue of up to ₹2,500 crore along with an offer for sale (OFS) segment, where Kotak Data Center Fund will divest shares worth ₹643 crore and Kotak Special Situations Fund will sell shares worth ₹557 crore. Additionally, SISL is contemplating a pre-IPO placement of specified securities, which may total up to ₹500 crore and will be part of the fresh issue, according to the DRHP.
Kotak Data Center Fund and Kotak Special Situations Fund hold 6.19% and 5.36% stakes in SISL, respectively, while the promoters retain an 88.45% shareholding.
SISL has outlined that the net proceeds from the IPO will be allocated towards partially financing capital expenditures related to the completion of Tower B at its Chennai 02 data centre, projected at ₹465 crore, and the construction of Towers 11 and 12 at its Rabale Data Centre in Navi Mumbai, estimated at ₹860 crore. Furthermore, ₹600 crore is earmarked for the repayment or prepayment of certain borrowings, with the remaining funds directed towards general corporate purposes.
As a wholly-owned subsidiary of Sify Technologies, SISL provides various data centre services, including colocation, build-to-suit, interconnection, and value-added services aimed at facilitating Hyperscalers and enterprise clients in securely accommodating their IT infrastructure within scalable and energy-efficient facilities.
As of June 30, 2025, SISL reported a clientele of over 500 and operated 14 data centre facilities across the country. According to market research referenced in the DRHP, the company held a 15.26% market share in India based on built IT capacity as of March 31, 2025.
Founded in 2000 and led by Chairperson and Non-Executive Director Vegesna Ananta Koti Raju, SISL registered a net profit of ₹126.3 crore for fiscal year 2025 on revenues of ₹1,428.3 crore. The profit for the quarter ending June 2025 was ₹13.6 crore, with revenues at ₹398.6 crore.
The book running lead managers for this IPO are JM Financial Ltd, CLSA India Private Ltd, JP Morgan India Private Ltd, Kotak Mahindra Capital Company Limited, and Morgan Stanley India Company Private Ltd.
Published on October 17, 2025.
