Data center firm Sify Infinit to file $500M IPO soon
What's the story
Sify Infinit Spaces Ltd., a leading player in India's data center industry, is gearing up to file for a $500 million initial public offering (IPO) within the next two weeks. The move could make it the first Indian data center operator to be listed on stock exchanges. The IPO will comprise both new and existing shares of the company, as per Moneycontrol.
Market trends
Tech firms' interest in data centers surges
The decision to go public comes as tech companies and investors are betting big on data centers in India. The trend is driven by increased digital consumption, artificial intelligence adoption, and data localization initiatives. With this planned IPO, Sify will join a growing list of Indian companies looking to raise funds through the primary market for their expansion plans.
Growth projection
Data center demand to double by 2028-end
According to ICRA Ltd., a rating company, India's demand for data centers is expected to more than double in the next three years. The projected growth will require an investment of approximately $10 billion. Sify Infinit is one of the major domestic players in this space, which also includes global giants such as Japan's NTT, Temasek-backed STT Global Data Centres, and Carlyle Group-backed Nxtra Data Ltd.
Company profile
Backed by Kotak Private Equity Group
Sify Infinit, which is backed by Kotak Private Equity Group, started its first facility in 2000. The company now operates 14 sites across India. Its board approved the proposed IPO on September 25. The bookrunners for this planned offering include Kotak Mahindra Capital, Morgan Stanley, JPMorgan Chase, Citic Securities, and JM Financial Ltd.