Kotak Special Situations Fund (KSSF), managed by Kotak Investment Advisors Limited (KIAL), today announced an agreement under which KSSF will invest up to Rs 1,000 crore ($135 million) in Sify Infinit Spaces Limited (SISL), a wholly-owned subsidiary of Sify.
SISL is a data centre services player in India, serving Indian and Global enterprise customers and hyperscalers from its ten operational Data Centres across the country.
Under the transaction, the KSSF investment will be in the form of Compulsorily Convertible Debentures, which will convert into equity based on the operational performance of SIS over a specified reference period. The funds would be used to invest in SIS’ current plan under execution of developing new Data Centres in Mumbai, Noida, Chennai, Bangalore and Hyderabad and for investment in renewable energy requirements for its operational and new Data Centres for up to Rs 4,000 crore ($530 million).
Raju Vegesna, Chairman and Managing Director, Sify said, “The current capacity of the Data Centre industry in India is expanding at an unprecedented pace, powered by wider cloud adoption, 5G rollout and accelerated digital transformation programmes of enterprises. We are delighted to partner with KSSF as a part of this journey to build world-class Data Centre facilities for our customers to benefit from the large scale digital transformation of India.”
MP Vijay Kumar, Chief Financial Officer, Sify said, “The KSSF partnership will give us access to long-term capital, beyond the present investment. We will, as always, be prudent in our business judgements and build facilities close to assessment of customer demand and in a modular way, deploying the latest and most cost-effective technologies for both design and operations.”
Srini Sriniwasan, Managing Director, Kotak Investment Advisors Limited said, “We are delighted to partner with Sify to build out the Data Centre capacity in India and contribute to the goal of a digitally savvy India, based on the strength of Sify’s entrepreneurial capabilities and experienced management team.”
Eshwar Karra, CEO-Kotak Special Situations Fund, Kotak Investment Advisors Limited said, “Our investment in SIS is in line with our strategy of providing capital to unique India opportunities that require flexible and customised capital solutions, which enables us to grow with our partners and participate in their success while providing value-added support and opportunistic capital in size and scale.”
