Sify Data-Center Unit Is Said to Plan $500 Million India IPO

Sify Technologies Ltd.’s data-center unit is preparing to submit a preliminary filing with the Indian regulator for an initial public offering that may fetch $500 million, according to people familiar with the matter.

Sify Infinit Spaces Ltd. plans to file a so-called draft red herring prospectus with the Securities and Exchange Board of India in the coming weeks, the people said, asking not to be identified because the information isn’t public. The company, backed by Kotak Private Equity Group, is considering the sale of new and existing shares for the offering, which would value it at about $3 billion, they said.