Now Reading: Lightstorm raises Rs 2,500 crore debt from IndusInd Bank
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Lightstorm raises Rs 2,500 crore debt from IndusInd Bank
Lightstorm Telecom Connectivity, backed by private equity firm I Squared Capital, has secured a Rs 2,500 crore long-term debt facility from IndusInd Bank to expand its data centre connectivity network. Co-founder and…
The Story in Brief
Lightstorm Telecom Connectivity, backed by private equity firm I Squared Capital, has secured a Rs 2,500 crore long-term debt facility from IndusInd Bank to expand its data centre connectivity network. Co-founder and CEO Amajit Gupta told Mint the 10-year fully underwritten facility will fund terrestrial and subsea fibre projects connecting Indian data centre clusters with regional hubs. Initial capital will go to domestic corridors, with subsea cable work funded over 24-36 months.
The company will use the funds to build network infrastructure across India's southern corridor and expand its I-2SEA subsea cable system to Southeast Asia, Japan, and the US. Lightstorm operates over 30,000 km of terrestrial fibre and 21,000 km of subsea fibre, linking more than 100 data centres globally. The debt rebalances its capital structure after five years of minimal borrowing, and rolls up an existing Rs 700 crore credit line from NIIF. India's data centre capacity could reach 7-8 gigawatts by 2035, says research firm Square Yards.
The Indian Opinion
The rush to call every data centre loan a bet on AI glosses over the real story. Lightstorm's debt-to-PBILDT ratio of 1.06x is modest, and CareEdge warns that higher debt-funded capex could weaken leverage. The claim of a $250 billion commitment from Big Tech and conglomerates mixes announcements with actual spend. Watch whether Lightstorm hits its internal return targets in the high teens. The test is not how much fibre is laid, but how many of those 100 data centres actually pay for the connectivity.
Source: livemint.com
This story was synthesised by AI from the source linked above.
