Bharti Airtel is considering launching initial public offerings (IPOs) for two of its subsidiaries—Airtel Payments Bank and its data center unit, Nxtra—within the next few years. According to a senior company executive, Airtel Payments Bank is likely to be the first to go public, driven by a regulatory mandate that requires it to list within 10 years. The bank, which began operations in 2017, reported a net profit of ₹18.5 crore on a revenue of around ₹700 crore in the third quarter of the current financial year. “We have a mandate, and we have been net worth positive for some time. So, over the next couple of years, we should potentially see an IPO in the payments bank,” the executive stated, requesting anonymity.
Following Airtel Payments Bank, Bharti Airtel may consider an IPO for its data center subsidiary, Nxtra, which caters to hyperscalers and domestic companies. The company currently holds a 75% stake in Nxtra, which it may look to divest in the future. “It is an asset that we can divest, create an IPO, or reduce our shareholding over time,” the executive said. However, in the near term, Bharti Airtel has significant investment plans for Nxtra, which is 24% owned by private equity firm Carlyle. The company is focusing on expanding data center capacity and acquiring more land to support its growth.
Nxtra, which competes with firms like Netmagic, CtrlS, and ST Telemedia, holds a 12% market share and reported a net profit of ₹231.8 crore on operational revenue of ₹1,826.6 crore for the financial year 2023-24. The executive noted that the data center industry is highly fragmented, with multiple players, and Airtel has ambitious expansion plans for Nxtra over the next few years. “We will continue to invest in Nxtra for now. The business model is very different from telecom—it’s largely land and power-related. But at the right time, it is an asset that can be monetized,” the executive explained.
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Nxtra currently provides data center services across more than 120 locations, catering to enterprises, hyperscalers, startups, SMEs, and government clients. The company is set to double its existing capacity to over 400 MW in the coming years, further strengthening its position in the growing data center market.
