This data-center company is planning a $500M IPO in India
What's the story
Sify Infinit Spaces, a subsidiary of Sify Technologies Ltd and backed by Kotak Private Equity Group, is gearing up for an initial public offering (IPO) in India. The company plans to file a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) in the coming weeks. The move could potentially raise around $500 million for Sify Infinit Spaces.
IPO strategy
Sify could sell both new and existing shares
The upcoming IPO could see Sify Infinit Spaces selling both new and existing shares. This would put the company's valuation at around $3 billion. The decision comes in light of the growing demand for data centers, particularly with the rise of artificial intelligence (AI) technology.
Market growth
Data center boom in India
India's data center capacity is expected to grow by a whopping 77% to 1.8GW in the next four years, according to a report by property consultant JLL. Sify Infinit Spaces is one of India's first data-center companies, having launched its first facility in 2000. The firm currently operates 14 data centers across India and provides around 188MW of power, as per its annual report.
Financial backing
IPO bookrunners and early funding rounds
Sify Infinit Spaces has raised $182 million in two rounds from Kotak's Special Situations Fund and Kotak Data Center Fund via compulsory convertible debentures, as per rating agency ICRA Ltd. Kotak Mahindra Capital, Morgan Stanley, JPMorgan Chase, Citic Securities, and JM Financial Ltd have been appointed as bookrunners for the upcoming IPO.