Sify Infinit IPO papers with SEBI: A look at its financials, strengths and risks

Sify Infinit IPO: Sify Infinit Spaces Ltd, a subsidiary of Sify Technologies and one of India's leading providers of data centre colocation services, filed a draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) on October 17 to raise ₹3,700 crore via an initial public offering (IPO). Notably, if approved, it will be the country's first data centre IPO.

The proposed initial share sale is a fresh issuance of shares valued at ₹2,500 crore as well as an offer for sale (OFS) of ₹1,200 crore by existing investors Kotak Data Center Fund (₹643 crore) and Kotak Special Situations Fund (₹557 crore).

The company may also consider raising up to ₹500 in a pre-IPO placement round. If undertaken, the amount collected from such placement will be deducted from the fresh issue size.

Funds to the tune of ₹1,325 crore will be used for capital expenditure purposes related to data centres, ₹600 crore for repayment of debt and the remainder for general corporate purposes.

Sify Infinit Spaces is among the leading providers of data centre colocation services in India in relation to built IT capacity, as of March 2025, according to the 1Lattice and C&W Report. It has 14 operational colocation data centre facilities in six cities in India, as of June 30, 2025.

Three of the company's latest facilities have been certified for AI workloads and air and liquid cooling by NVIDIA.

Sify Infinit Spaces IPO: Financials

Sify Infinit Spaces IPO: A look at its strengths

• Sify Infinit Spaces is a pan-India leading provider of hyperconnected, high-performance digital infrastructure solutions. It is one of India's top 3 players in data centre colocation services space in terms of built IT capacity, according to the 1Lattice and C&W Report. With a combined built IT power capacity of 188.04 MW, it operates 14 colocation data centre facilities located in 6 cities.
• The company benefits from the domain knowledge, including in design, engineering, technology and development efficiency, that Sify Group has acquired over the course of more than three decades of operations and over 25 years of offering high-performance data centre hosting solutions to its clients across India.
• The company has a diversified client base of more than 500 customers, consisting of a mix of hyperscaler clients and enterprise clients, as of June 2025.

Sify Infinit Spaces IPO: Risks

• In the three months ended June 2025 and fiscals 2025 and 2024, the company derived 82.26%, 82.43% and 79.44% of its revenue from the top 10 clients. Loss of any key clients can affect financials.
• The global data centre sector is witnessing unprecedented growth, leading to increased competition. If the company is unable to retain and acquire clients, it can affect its business, financials and future prospects.
• Sify Infinit Spaces requires substantial power and fuel to run its data centres. Any reduction in power supply, rising power expenses or unavailability of fuel can disrupt data centre operations and lead to a decline in profits.