MUMBAI: Digital infrastructure provider CtrlS Datacenters has begun preparations to raise about $300 million through an initial public offering (IPO), three people familiar with the matter said, amid rising investor appetite for the segment.
Founded by Sridhar Pinnapureddy, the Hyderabad-based company has initiated discussions with bankers to assess market conditions, the people said, adding that appointments are likely in the coming months, with a listing targeted by the end of this financial year.
CtrlS did not respond to Mint’s requests for a comment till the time of publishing.
The move comes as India’s sees heightened deal and investment activity. Last month, Bharti Airtel announced a $1 billion investment in its data-centre arm Nxtra in partnership with Alpha Wave Global, Carlyle and Anchorage Capital, in a deal that valued the business at $3.1 billion.
CtrlS’s larger rival Sify Technologies is also expected to tap the public markets in the coming months to fund capacity expansion. The company has already received regulatory approval for an IPO. Mint has also reported on plans for a domestic listing, reflecting growing investor interest in digital infrastructure and artificial intelligence (AI)-linked assets.
India’s data centre capacity is expected to expand sharply, with total installed power projected to exceed 2 GW by 2026 from over 1 GW currently, according to a KPMG report. Capacity could grow fivefold to more than 8 GW by 2030, driving over $30 billion in capital expenditure, the report said.
In February, the Centre proposed that foreign companies providing cloud services globally while using data-centre services in India could qualify for a tax holiday until 2047. The proposal has prompted companies such as Neysa, which recently secured $1.2 billion in debt and equity from Blackstone to scale up AI-cloud infrastructure in the country.
Founded in 2008, CtrlS began operations with its first data centre in Hyderabad. It provides colocation and managed infrastructure services to global and domestic clients. It currently operates 17 data centres across Mumbai, Hyderabad, Chennai, Noida, Lucknow, Kolkata, Patna and Bengaluru.
The company serves hyperscalers, BFSI firms, players, telecom operators, government entities and information technology (IT) companies. As of August 2025, CtrlS’s total operational capacity stood at about 130 MW, expected to grow by 40-45 MW annually over the next three years, all of which is pre-leased, according to a report by rating agency Icra Ltd.
CtrlS’s operating income rose about 17% to ₹1,567 crore in FY25, driven by higher capacity utilization. Icra estimates annual revenue growth of 20-25% in FY26 and FY27, supported by contracted agreements. Net profit narrowed slightly to ₹251 crore in FY25 from ₹256 crore a year earlier.
The company is also expected to incur capex of ₹4,500-4,600 crore through FY26-FY28, primarily toward new data centres and mechanical, electrical and plumbing costs for pre-leased capacity. This is likely to be funded by ₹3,000-3,500 crore of debt, with the remainder through internal accruals, the credit rating agency said.
Icra noted that while CtrlS has a strong operating track record and diversified presence across cities, it faces intensifying competition from large-scale capacity additions by both new entrants and existing players.
Broader demand for data centres is being driven by data localization, rising data consumption and digitization trends, including cloud adoption, generative AI, Big Data and 5G rollout. Government focus on digital infrastructure, along with policies such as the Digital Personal Data Protection framework and infrastructure status for data centres, is expected to further support investment in the sector, Icra added.