SEBI greenlights Sify Infinit Spaces’ data centre IPO

The Securities and Exchange Board of India (SEBI) has approved the draft red herring prospectus (DRHP) of Sify Infinit Spaces, a data centre colocation operator, clearing the way for the company’s proposed initial public offering (IPO).

Through the offering, Sify Infinit Spaces plans to raise approximately Rs 37 billion. This includes a fresh issue of shares worth Rs 25 billion and an offer for sale (OFS) of Rs 12 billion by existing shareholders. Details such as the price band, lot size, and issue dates are yet to be announced. KFin Technologies has been appointed as the registrar to the issue, while JM Financial will act as the book-running lead manager.

The IPO comes at a time when demand for data centre capacity in India is rising, driven by increased cloud adoption, digital services, and data localisation requirements. Industry analysts note that colocation providers are benefiting from growing investments by hyperscale cloud companies, enterprises, and government agencies.

According to the company, a significant portion of the funds raised through the fresh issue will be used to support ongoing expansion projects. These include the completion of a data centre tower in Chennai and the construction of two additional towers at its facility in Navi Mumbai. The total capital expenditure for these developments is estimated to exceed Rs 13 billion.

In addition to funding infrastructure expansion, around Rs 6 billion from the proceeds will be allocated towards reducing outstanding debt. The remaining funds will be used for general corporate purposes, including working capital and operational requirements.

The offering is expected to attract interest from both domestic and international investors, reflecting growing confidence in India’s digital infrastructure sector and the long-term prospects of the data centre industry.