Yotta plans IPO of up to Rs 8,000 cr to fund AI infra push

By Himadri Buch & Himanshi Lohchab, ET BureauLast Updated: Aug 13, 2026, 06:48:00 AM IST

Synopsis

Yotta Data Services is preparing to file its draft prospectus for an initial public offering. The company aims to raise approximately six thousand to eight thousand crore rupees. These funds will support expanding data centre footprint and AI infrastructure deployment. Yotta recently secured one hundred fifty million dollars in a pre-IPO funding round. This move positions Yotta to meet growing demands for computing capacity in India.

Mumbai: Yotta Data Services, the Hiranandani Group-backed data centre operator, is preparing to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering in the coming months, people familiar with the development told ET.

The company is looking to raise around ₹6,000-8,000 crore through the IPO, said the people cited above. Kotak Mahindra Capital, ICICI Securities and SBI Capital Markets have been appointed as book-running lead managers for the issue. Emails sent to the company and the bankers did not elicit a response.

Yotta joins its peer Sify Infinit Spaces to be among the first Indian data centre companies to tap the public markets as AI infrastructure demands massive capital investments. ST Telemedia Global Data Centres (STT GDC) is also reportedly eyeing a listing this year.

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Yotta is aiming to raise a total of ₹15,000 crore through a combination of pre-IPO and an IPO, an executive close to the company said. Last month, it closed one pre-IPO round to raise $150 million (₹1,500 crore) from non-institutional investors at a valuation of around $3.9 billion or ₹37,000 crore.

"The target is to raise $1.2-$1.5 billion. About $400 million will come from HNIs and family offices, and global private equity funds," one person said.

The company plans to use the proceeds to expand its data centre footprint, sovereign cloud services, managed services and in deploying AI infrastructure including chips and cooling systems, the person said. The Mumbai-based firm has been scaling up its data centre and AI infrastructure business amid growing demand for computing capacity in India.

Over the next two years, Yotta is investing $2 billion (₹16,600 crore) to deploy Nvidia's latest AI chips.

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