In a country where smartphones outnumber bank accounts and data has become the new oil, the real power lies in the silent fortresses that keep India online — its data centers. Now, one of those fortresses is stepping into Dalal Street. Sify Infinit Spaces (SISL) — borne out of a legacy that launched India’s first commercial data center in 2000 — has filed its DRHP with the Securities and Exchange Board of India (SEBI) for an INR 3,700 crore IPO. With 14 operational data centers and a pan-India capacity of 188 MW, SISL is offering investors rare access to the rapidly ascending world of cloud infrastructure, AI workloads, and India’s digital backbone.
Sify Infinit Spaces IPO represents a direct play on India’s rapidly expanding data center and AI infrastructure theme, a segment projected to grow at 25–30% CAGR over the next five years, driven by cloud computing, OTT demand, and AI workloads.
📦 Sify Infinit Spaces IPO Snapshot: Numbers That Matter
| Particulars | Details |
|---|---|
| Issue Size | INR 3,700 crore |
| Fresh Issue | INR 2,500 crore |
| Offer for Sale (OFS) | INR 1,200 crore |
| Face Value (FV) | INR 10 per share |
| Retail Quota | 35% |
| Employee Quota | ✅ Reserved |
| Book Running Lead Managers (BRLMs) | JM Financial, CLSA India, JP Morgan, Kotak Mahindra Capital, Morgan Stanley |
The IPO proceeds are earmarked for expanding high-performance data center capacity and deleveraging the balance sheet, according to the company’s DRHP.
🏢 Sify Infinit Spaces IPO: The Core of the Business
Sify Infinit Spaces operates 14 data centers across 7 key metros, positioning it as India’s first and largest independent data center colocation provider by built IT capacity.
| Location | Facilities | Built Capacity (MW) | Highlights |
|---|---|---|---|
| Rabale (Mumbai) | Towers 1–5 | 96.94 | Flagship hyperscale campus; TIA-942 Rated 4 certified; AI-ready |
| Noida (Delhi NCR) | Noida 01 & 02 | 36.88 | Tower B certified for DGX AI workloads |
| Chennai | Chennai 01 & 02 | 29.50 | Tower B: India’s first with on-premise subsea cable landing |
| Hyderabad | 1 facility | 14.4 | 230kV GIS substation; expansion-ready |
| Bengaluru | 1 facility | 4.82 | Enterprise-focused; near-zero latency architecture |
| Airoli (Mumbai) | 1 facility | 4.05 | Cloud adjacency and managed services hub |
| Vashi (Mumbai) | 1 facility | 0.38 | Legacy DC with 25 years of operation |
| Kolkata | 1 facility | 1.08 | East India enterprise hub |
As of 30 June 2025, total built IT power capacity stood at 188.04 MW, with installed capacity of 131.88 MW and operational capacity of 113.67 MW, translating into a robust capacity utilization of 86% on installed base.
💰 Use of IPO Proceeds: Growth + Deleveraging = Strategic Balance
According to the DRHP, the net proceeds from the fresh issue (INR 2,500 crore) will be deployed as follows:
| Use of Funds | Amount (INR Cr) | Purpose |
|---|---|---|
| Completion of Chennai 02 Tower B | 465.0 | Final fit-out and commissioning of 25.92 MW AI-ready facility |
| Construction of Rabale Towers 11 & 12 | 860.0 | Adds ~40–45 MW to flagship Mumbai campus |
| Debt repayment / prepayment | 600.0 | Reduce leverage; save INR 45–50 crore in interest annually |
| General corporate purposes | NA | Working capital, ESG initiatives, digital innovation |
The fund allocation reflects a strategic balance between capacity expansion (≈53%) and financial optimization (≈24%), with the remainder offering operational flexibility.
📈 Financial Performance: Profitable and Scaling
| Fiscal Year | Revenue | EBITDA Margin (%) | PAT |
|---|---|---|---|
| FY23 | 1,021.34 | 40.40 | 96.69 |
| FY24 | 1,114.17 | 41.76 | 93.25 |
| FY25 | 1,428.37 | 44.40 | 126.36 |
| Q1 FY26 | 398.60 | 44.33 | 13.6 |
🔹 Over FY23–FY25, Revenue grew 38% and PAT rose 36% CAGR, demonstrating operational leverage and rising utilization.
🔹 EBITDA margins have consistently stayed above 48–50%, in line with global colocation operators.
👥 Client Portfolio: Blue-Chip and Cloud-Heavy
As of 30 June 2025, SISL served over 500 clients, including:
- 3 of the top 4 global hyperscalers,
- 7 of the top 10 Indian banks,
- 4 of the top 10 Indian insurance companies,
- 2 of the top 5 global social media firms.
This diversified base underscores SISL’s strategic position as a neutral interconnection hub serving both Hyperscalers and Enterprise clients.
🧩 Strategic Positioning: Riding India’s Digital Infrastructure Boom
India’s data center industry is entering a “super-cycle.”
According to industry reports (1Lattice and Cushman & Wakefield), total India DC capacity is expected to cross 1,400 MW by FY28, up from ~850 MW in FY25.
SISL is at the heart of this expansion, leveraging:
- Carrier-neutral campuses with dual meet-me-rooms,
- AI-ready rack densities (up to 130 kW/rack),
- On-site subsea cable landing (Chennai), and
- Sustainability leadership (IGBC Platinum, DGX-ready certifications).
Moreover, the company is developing Edge Data Centers in Lucknow and Chandigarh, tapping into low-latency regional demand from gaming, IoT, and 5G applications.
📊 Human Capital & Operations
- Total employees (June 2025): 269
- Engineering staff: 220
- In-house capabilities across civil, structural, and MEP engineering reduce dependency on external EPC vendors.
- ISO 27001 & ISO 20000 certifications reinforce cybersecurity and service management excellence.
🏦 Financial Health and Leverage Outlook
- Pre-IPO Debt: ~INR 27 billion
- Debt to be repaid via IPO proceeds: INR 6 billion
- Post-IPO leverage (Net Debt/EBITDA): expected to fall from 3.9× to ~2.8×, enhancing free cash flow and ROCE.
💬 Market View
Analysts see Sify Infinit Spaces IPO as a pure-play proxy for India’s AI, cloud, and hyperscale infrastructure story — much like how REITs offered investors access to commercial real estate in previous decades.
“Sify Infinit Spaces IPO is perfectly timed — hyperscaler cloud adoption, 5G rollout, and AI workloads are creating unprecedented data storage demand. SISL offers a scalable, neutral, and pan-India data center platform — a scarce asset in public markets,” said a Mumbai-based fund manager with a large infra-focused PMS.
Sify Infinit Spaces IPO also adds diversity to Indian equity markets, which currently lack dedicated listed data center plays — with Nxtra (Bharti Airtel) and AdaniConneX still privately held.
Verdict
With strong parentage, blue-chip clients, expanding capacity, and improving utilization, Sify Infinit Spaces positions itself as one of the most exciting digital infrastructure listings in India’s market history.
If executed well, SISL IPO could mark the beginning of a new asset class on Dalal Street — one rooted in data, energy, and the digital future.
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