Sify Infinit Spaces, which is a leading data center colocation services firm in India, has received the approval of the Securities and Exchange Board of India (SEBI) to carry out its initial public offering (IPO). The authorisation is a major step forward for the Chennai-based company since the proposed ₹3,700 crore issue will be the first of its kind to be listed on the Indian stock exchanges as a pure-play data center provider. This regulatory concession gives the company a twelve-month lifeline to list and access the public markets.
Structure and strategic utilization of the IPO
The ₹3,700 crore IPO is organized as a fresh issue and offer of sale (OFS). The fresh issue part, as per the Draft Red Herring Prospectus (DRHP), will be valued at ₹2,500 crore, which is fresh equity shares that will directly inject new capital into the firm.
The remaining ₹1,200 crore will be collected by the offer for sale, where current investors will sell their shares. In particular, Kotak Data Center Fund will sell shares valued at ₹643 crore, and Kotak Special Situations Fund will sell another ₹557 crore.
Sify Infinit Spaces has provided a roadmap for the implementation of the capital raised with the fresh issue. One of the main allocations is the critical infrastructure expansion projects, in which about ₹1,325 crore will be utilized. This consists of ₹465 crore to complete Tower B of its data center infrastructure in Siruseri, Chennai, and ₹860 crore in building two new towers within its data center hub in Rabale, Navi Mumbai. In addition to the physical growth, the company will use ₹600 crore to settle its current borrowings, with the remaining being used for general corporate purposes to enhance its operational flexibility.
Market presence and financial performance
Sify Infinit Spaces, as a subsidiary of the Sify Group which is a pioneer in the Indian market of the private internet service industry, has a comprehensive network in the country. The company operates 14 data centers in strategic locations in six major cities in India, namely, Mumbai, Chennai, Noida, Hyderabad, Bengaluru, and Kolkata.
These plants have a combined working capacity of 113.67 MW as opposed to a much larger constructed power capacity of 188.04 MW. This is a hyperconnective infrastructure that aims to serve high-availability, secure workloads of a wide range of hyperscale and enterprise clients.
The firm comes into the public market with a stable financial performance. Sify Infinit Spaces recorded a net profit of ₹13.63 crore and a total revenue of ₹398.59 crore for the quarter ending on June 2025. In order to deal with the dynamics of the public issue, the company has hired a giant of financial institutions to be the book-running lead managers. This association consists of JM Financial Limited, CLSA India Private Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited, and Morgan Stanley India Company Private Limited.
Conclusion
The SEBI approval will enable Sify Infinit Spaces to be the leader in digital infrastructure firms in the Indian capital markets. With the regulatory clearance it has obtained after the ₹3,700 crore IPO, the company will enter into its next development phase, which will be increasing its capacity in the main centers of demand, such as Chennai and Mumbai.
Being the pioneer in the history of data center services to list on a domestic board, a successful IPO will not only strengthen the balance sheet of Sify itself but also act as a major benchmark of investor confidence in the Indian digital and data economy.
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