Yotta Data Services Eyes 2027 IPO: Plans To Raise Up To $1.5 Billion

Yotta Data Services is planning to go public early next year. The data centre company is targeting an initial public offering (IPO) in the January-March quarter of 2027 and could raise up to $1.5 billion through the IPO and pre-IPO funding. The company plans to file its draft IPO papers in October this year.

Yotta Data Services IPO Plans: Size And Use Of Funds

The company is looking to raise up to $1.5 billion. This includes money raised before the IPO as well as through the public issue. The actual IPO size could be smaller, as Yotta has already raised part of the amount through private funding.

In August, Yotta raised $150 million in primary growth capital at a valuation of around $3.9 billion. The company has not disclosed how much more it plans to raise before the IPO.

Yotta plans to use the funds to repay debt, buy more graphics processing units (GPUs) and expand its sovereign cloud infrastructure. The spending comes as demand for AI computing continues to grow.

What Does The Yotta Data Services IPO Mean For Investors?

The timing of the IPO comes as companies around the world are spending heavily on AI. India is seeing more investment in data centres from companies such as Google and Amazon. Power availability and GPU shortages have made expansion harder in some markets, while companies are increasingly turning to India for new AI infrastructure. A 20-year tax holiday announced by the government for foreign firms using Indian data centres has also helped attract overseas customers.

Yotta Data Services is backed by the Hiranandani Group. It operates data centres and provides computing infrastructure for AI applications. The company says it is India's largest provider of Nvidia-powered AI infrastructure.

For investors, the growing demand for AI computing is the main attraction. Yotta is already expanding its infrastructure and the IPO could give it more money to add GPUs and data centre capacity. 75-80% of its clients come from overseas, which is another point to consider.

Despite the AI boom, there are a few risk factors to consider. These infrastructures require large investments, which means the business needs a steady flow of capital. Yotta is also using part of the planned funding to repay debt. Competition is another factor, with large technology and infrastructure companies investing in the same market.

The final IPO valuation will be important. Investors will get a better idea around it, once the draft papers and, later, the price band are announced.

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