Yotta Data Services likely to file draft IPO papers as early as October

Hiranandani Group-backed data centre operator is also looking to raise capital from private equity firms through a pre-IPO funding round

Data centre operator Yotta Data Services aims to file its draft initial public offering (IPO) papers as early as October this year. The Hiranandani group-backed company is likely to launch the issue by the fourth quarter of 2026-27 (Q4FY27) as it looks to raise $1.5 billion via a public issue.

 

Yotta is also eyeing a pre-IPO fundraise from private equity (PE) firms. The company had raised around $150 million from high net-worth individuals and family offices earlier this year. 

 

“With last year’s books closed, If I am filing [IPO papers] in October, I will have to also announce the books of September… which will be done. All the bankers and legal counsels are in place and the work is in the final stages. We are just waiting for these private accounts to get closed,” said Sunil Gupta, co-founder, chief executive officer (CEO) and managing director of Yotta told Business Standard in an interaction on Tuesday.

  

The IPO size may be smaller even though the business is extremely capital expenditure heavy, he added. 

 

“We may end up getting almost this entire money or even more from PE… that may make the IPO size smaller. The size will be decided by the end of September,” he said. About five PEs are expected to take part in the funding round.

 

The company will not dilute more than 25 per cent of its stake and is likely to be valued at about $6 billion.

 

Yotta is building brick and mortar data centres, and is also involved in procurement of graphic processing units (GPU) — mostly from Nvidia — which are used for AI computing.

 

Indian data centre operators are increasingly turning to capital markets for their fund raising needs as demand soars. The government aims to make the country a hub for data centres. India generates about 20 per cent of the world’s data but accounts for just 3 per cent of the data centre capacity.

 

Yotta builds cloud and AI infrastructure. It has several data centres in Mumbai, GIFT City in Gujarat, and Noida. The company is in the process of ordering 50,000 Vera Rubin GPUs and 45,000 GB 300s from Nvidia. The overall cost of acquiring the Vera Rubin chips would be around $7.5 billion, which includes all networking and associated equipment. Another $750 million will also be required for data centre construction.