India set for first data centre IPO as Sify Infinit gets SEBI approval

The Securities and Exchange Board of India (SEBI) has cleared the way for Sify Infinit Spaces to launch its initial public offering (IPO). This marks the first time a pure-play data centre operator will list on Indian stock exchanges. The market regulator issued its observations on the company's draft papers on 23 January 2026, roughly three months after the initial filing in October 2025.

Issue structure and financial details

The total issue size stands at Rs 3,700 crore. This includes a fresh issue of shares worth Rs 2,500 crore and an offer for sale (OFS) of Rs 1,200 crore from existing investors. Kotak Data Center Fund and Kotak Special Situations Fund are the primary sellers in the OFS, offloading stakes worth Rs 643 crore and Rs 557 crore.

Sify Infinit reported a net profit of Rs 126.36 crore for the financial year ending 31 March 2025. This was a 35.5% increase from the previous year’s profit of Rs 93.25 crore. Total income for the same period rose by 28% to reach Rs 1,454.28 crore. As of June 2025, the company maintains a debt-to-equity ratio of 1.37.

Strategic use of capital

The company plans to use the proceeds from the fresh issue to expand its physical footprint. Key allocations include:

• Rs 860 crore for setting up Towers 11 and 12 at the Rabale data centre in Navi Mumbai.

• Rs 465 crore to complete Tower B at the Siruseri data centre in Chennai.

• Rs 600 crore to repay or prepay existing borrowings.

The remaining funds will support general corporate purposes and capital expenditure for other ongoing projects.

Market position and operations

Sify Infinit operates 14 colocation data centres across six major Indian cities: Mumbai, Chennai, Noida, Hyderabad, Bengaluru, and Kolkata. As of 30 June 2025, these facilities have a total built IT power capacity of 188.04 MW. The company services over 500 clients, including hyperscalers and large enterprises.

The data centres are carrier-neutral and provide direct interconnects to multiple public cloud providers. Three of the newest facilities are certified for high-density artificial intelligence workloads, supporting power densities up to 130 kW per rack using liquid cooling systems.

Advisors to the issue

JM Financial Limited, CLSA India, J.P. Morgan India, Kotak Mahindra Capital, and Morgan Stanley India are managing the book-building process. Kfin Technologies Limited will serve as the registrar for the IPO. While the regulatory approval is valid for 12 months, the specific dates for the price band announcement and public bidding remain pending.