Sify Infinit Spaces Ltd., a Chennai-based data center company, has taken a significant step towards becoming India's first publicly listed data center company. The firm has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aimed at raising Rs 3,700 crore.

IPO Structure and Details

The IPO comprises a fresh issue of shares worth Rs 2,500 crore and an offer-for-sale (OFS) of Rs 1,200 crore by existing shareholders. Sify Infinit Spaces plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Key Financial Information

Use of Proceeds

The company has outlined specific plans for utilizing the IPO proceeds:

Market Position and Leadership

Sify Infinit Spaces, led by Vegesna Ananta Koti Raju, holds a 15.26% market share by built IT capacity in India, positioning it as a key player in the country's data center industry.

IPO Management

The book-running lead managers for this IPO include:

• JM Financial
• CLSA India
• J.P. Morgan India
• Kotak Mahindra Capital
• Morgan Stanley India

This IPO marks a milestone in India's technology infrastructure sector, as Sify Infinit Spaces becomes the first data center company to seek a public listing in the country. The move comes at a time when data consumption and digital infrastructure needs are growing in India, potentially setting the stage for increased investor interest in the data center industry.

As the IPO process unfolds, market participants will be closely watching how this unique offering is received, given the critical role data centers play in supporting India's digital economy growth.

Sify Infinit Spaces Ltd., a subsidiary of Sify Technologies Ltd., is set to make a significant move in India's rapidly growing data center market. The company is preparing to file for a $500 million initial public offering (IPO) within the next two weeks, marking a major milestone in its growth trajectory.

IPO Details

The upcoming IPO will comprise both new and existing shares, providing investors with an opportunity to participate in India's burgeoning data center industry. The company's board approved the potential IPO on September 25, paving the way for this strategic financial move.

Company Background

Sify Infinit Spaces, backed by Kotak Private Equity Group, has established a strong presence in India's data center landscape. The company currently operates 14 data center sites across the country, with its first facility commissioned in 2000. This extensive network positions Sify Infinit Spaces as a key player in India's digital infrastructure.

Market Dynamics

The timing of this IPO aligns with the surging demand for data centers in India. This growth is primarily driven by:

• Increasing digital consumption
• Rapid adoption of artificial intelligence
• Data localization initiatives

According to ICRA Ltd., India's data center demand is projected to more than double over the next three years. This expansion is expected to require an investment of approximately 900 billion rupees ($10.10 billion), highlighting the sector's enormous growth potential.

IPO Bookrunners

Sify Infinit Spaces has enlisted a roster of prominent financial institutions to manage the IPO process. The bookrunners for the offering include:

• Kotak Mahindra Capital Co.
• Morgan Stanley
• JPMorgan Chase & Co.
• Citic Securities Co.
• JM Financial Ltd.

This diverse group of financial powerhouses underscores the significance of the IPO in the global market.

As Sify Infinit Spaces prepares to enter the public market, its IPO is poised to be a notable event in India's technology and infrastructure sectors. The company's established presence in the data center industry, coupled with the country's growing digital needs, sets the stage for what could be a closely watched public offering in the coming weeks.