Sify Infinit Spaces Ltd. has put its planned ₹3700 crore initial public offering on hold, according to people familiar with the matter, adding to a growing list of companies delaying share sales because of India’s weak stock market.

Sify Infinit, the first pure-play Indian data center operator to pursue a public listing, was seeking a valuation of as much as $4.2 billion in the proposed offering. The company may revisit the IPO plan when market conditions improve, the people said, asking not to be identified because the information is private.

A representative for Sify didn’t respond to an email seeking comment.

Data center operators have drawn strong long-term investor interest, driven by rising demand for cloud computing, artificial intelligence workloads and data localization requirements. But concerns over profitability, capital expenditure requirements and aggressive valuations have made investors more selective, the people said.

India’s Sensex stock index has retreated 10% in 2026 following 10 straight years of gains. The downturn has threatened IPO valuations and pushed prospective issuers to delay fundraising plans. In April, the regulator extended the validity of certain IPO approvals by as much as six months after requests from companies grappling with market volatility.

Among deals suffering delays, Walmart Inc.-backed PhonePe Ltd. in April deferred its IPO preparations, becoming one of the first major Indian startups to slow listing plans. Other data center firms evaluating IPOs include STT Global Data Centres India Pvt. and Yotta Data Services Pvt. people familiar with the matter have said.

Backed by Kotak Private Equity Group, Sify Infinit commissioned its first data center facility in 2000 and operates 14 in India. The company had a combined installed IT power capacity of 188.04 megawatts as of June 2025.

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Published on June 16, 2026