Sify Infinit IPO Receives Sebi Nod For India's First Data Centre IPO - Check Details

Data centre colocation service provider Sify Infinit Spaces’s draft red herring prospectus (DRHP) has received the green light from the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO).

The company aims to raise capital through a fresh issue and an offer-for-sale (OFS). Here’s a look at some key details of the data centre service provider’s public issue:

Sify Infinit Spaces IPO: Offer Size

Sify Infinit Spaces seeks to raise Rs 3,700 crore through its public issue consisting of an OFS worth Rs 1,200 crore and a fresh issuance aimed at raising Rs 2,500 crore. The price band, lot size, and key dates for Sify Infinit Spaces IPO have not been announced yet. The book running lead manager is JM Financial and the registrar for the issue is Kfin Technologies.

Sify Infinit Spaces IPO: Key Financials

In the quarter ended June 30, 2025, Sify Infinit Spaces posted a total income of Rs 405.54 crore, the company’s profit-after-tax (PAT) stood at Rs 13.63 crore and net worth stood at Rs 1,754.33 crore.

Sify Infinit Spaces' total income increased by nearly 28 per cent to Rs 1,454.28 crore in the financial year ended March 31, 2025 compared to Rs 1,141.71 crore in the preceding fiscal. The company posted a net profit of Rs 126.36 crore in FY 2024-25, up by over 35 per cent compared to a net profit of Rs 93.25 crore in the preceding fiscal.

Sify Infinit Spaces: Business Model

Sify Infinit Spaces is a part of the Sify Group, which was one of the first Indian companies to offer private Internet services in India. The company is a provider of data center colocation services in India, in terms of built information technology (IT) capacity. The company mentioned in its RHP that it has 14 operational colocation data center facilities. The company offers data centre services like colocation, build-to-suit, interconnection and other value-added services. The company generates revenue primarily through its co-location services vertical.

Sify Infinit Spaces: Competitors

The company competes with existing and potential competitors, such as existing global players and Indian born domestic players. Several new private equity-backed platforms have also recently entered the Indian data centre market. The company competes with companies, such as Equinix, Inc, Digital Realty Trust, Inc, NEXTDC, according to the company’s DRHP.

Sify Infinit Spaces IPO: Should You Apply?

Here’s a look at the strengths and risks mentioned by the data centre services provider, which investors must consider before applying for the public issue:

Sify Infinit Spaces: Key Risks

Here’s a look at some of the key risks related to Sify Infinit Spaces’ business, according to the company’s RHP:

• The company derived 82.26 per cent of its revenue from operations in the three months ended June 30, 2025 from its top 10 clients. The loss of such key clients may materially and adversely affect the company’s business.

• The company disclosed that it may not be able to retain and acquire new clients for its data centres, and inability to retain and acquire clients may materially and adversely affect its business.

• The company added that disruption to its data centre infrastructure may cause it to lose clients and incur additional expenses.

Sify Infinit Spaces : Key Strengths

Here’s a look at some of the key strengths of Sify Infinit Spaces’, according to the company’s RHP:

• The company said in the DRHP that it is one of the top three providers of data centre colocation services in India in terms of built IT capacity as of March 31, 2025.

• Its data centres are carrier-neutral and strategically positioned in locations with high network connectivity, including subsea data cable landing stations and fiber networks. 

• Its data centers employ advanced cooling technologies, including air, liquid, and/or immersion cooling systems, to cater to varied workloads.

Sify Infinit Spaces IPO: Objective

Sify Infinit Spaces plans to use the proceeds raised through the public issue for funding its capital expenditures, such as expenses for completion of tower B of data centre in Siruseri, Chennai, part funding of capital expenditure requirements for setting up of towers 11 and 12 of data centres, and repayment or prepayment of the company’s borrowings. Additionally, the proceeds will also be used to fund general corporate purposes.