Sify's Board of Directors has approved the potential IPO of the company's data center subsidiary, Sify Infinit Spaces Limited (SISL). Secular trends in India are driving increasing demand for data centers and strong growth for SISL, and we think an IPO will help unlock the value of this business. At the end of 1Q:F26, net debt was $449 million, or 3.6x trailing 12-month EBITDA. We raise our price target to $22 (from $14) based on 75x our F2027 EPS forecast of $0.05 (previously $0.03) multiplied by six (shares per the American Depositary Receipt exchange ratio). We maintain our Moderate risk rating, which considers Sify's track record of growth and positive earnings and cash generation.