Sify Infinit Spaces Puts Around ₹3,700 Crore IPO On Hold
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Sify Infinit Spaces’ ₹3,700 crore IPO faces a valuation hurdle as the company seeks ₹40,000 crore, while investors value it at ₹22,000-25,000 crore. Read more for details.
Sify Infinit Spaces’ proposed initial public offering (IPO) is facing a valuation hurdle, with the data centre operator seeking a valuation of around ₹40,000 crore while investors have so far been willing to offer only ₹22,000-25,000 crore, according to people familiar with the matter. The IPO was earlier planned to raise around ₹3,700 crore through the public issue.
The wide gap has put the Sify Infinit Spaces IPO plans on hold, with the company possibly returning to the market next year if valuations improve. It had received approval from the Securities and Exchange Board of India (SEBI) in January 2026 for the proposed issue.
Why Has The IPO Been Delayed?
The data centre arm of Sify Technologies had earlier sought a valuation of up to $4.2 billion, or roughly ₹35,000-37,000 crore. Sify Infinit Spaces’ valuation expectations have since increased to around ₹40,000 crore.
However, investors have remained cautious about paying that price. The broader stock market has been weaker this year, while institutional investors have become more selective about new listings.
The company’s financial performance has improved. Revenue rose 28.2% to ₹1,428.4 crore in FY25 from ₹1,114.2 crore a year earlier. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased to ₹634.2 crore from ₹465.3 crore, while profit after tax rose to ₹126.4 crore from ₹93.2 crore.
Sify Infinit Spaces operates 14 data centres in India. It had a combined installed information technology (IT) power capacity of 188.04 MW as of June 2025.
Data Centre Growth Meets Valuation Concerns
India’s data centre industry is expected to see strong growth as demand rises for cloud computing, artificial intelligence and local data storage. Around $400 billion of capital has reportedly been committed by global hyperscalers and Indian companies towards the sector.
Industry capacity is expected to rise from about 1.6 GW to 10 GW over the next seven years. Despite this growth outlook, investors are also looking closely at the large capital requirements involved in building data centres and the time needed to generate returns.
The recent listing of ESDS Software Solutions has added another reference point for investors. ESDS entered the market at a valuation of around ₹5,000 crore before its market capitalisation rose sharply to around ₹22,000 crore.
The Sify data centre IPO comes as other operators also consider tapping India’s capital markets.
Sify Infinit Spaces has not responded to queries on its IPO plans. JM Financial, CLSA India, J.P. Morgan India, Kotak Mahindra Capital and Morgan Stanley India are the book running lead managers for the proposed issue.
Also Read - Furlenco Eyes ₹1,200 Crore IPO At Around ₹7,000 Crore Valuation
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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