Sify Infinit Spaces Ltd, a data center operator and subsidiary of Sify Technologies, has put its proposed Rs 3,700 crore initial public offering on hold, according to people familiar with the matter. The planned share sale, which was expected to raise approximately $391 million, has been deferred as companies increasingly adopt a cautious approach toward public listings amid weak stock market conditions.

The company had earlier been targeting a valuation of up to $4.2 billion and had initiated investor discussions for the offering. The IPO was proposed to include a fresh issue of shares along with an offer for sale by existing shareholders.

Sify Infinit operates data center facilities across multiple Indian cities and has been positioning itself to benefit from growing demand for digital infrastructure driven by cloud adoption, artificial intelligence applications, and data localization requirements. The company had planned to utilize IPO proceeds for expanding data center capacity and supporting future growth initiatives.

The decision to delay the IPO reflects broader caution in India's primary market, where several issuers have been reassessing listing timelines due to volatile market conditions and concerns over achieving desired valuations. The postponement does not necessarily indicate cancellation of the offering, and the company may revisit the listing plan when market conditions improve.