Rationale

STT Global Data Centres India Private Limited (STT GDC India) is a step-down subsidiary (74% shareholding) of STT GDC Pte. Ltd. (STT GDC) and an associate (26% shareholding) of Tata Communications Limited (TCL). While assigning the ratings, ICRA had factored in the likelihood of its ultimate parent (STT GDC) extending timely financial support to STT GDC India because of close linkages and high strategic importance. On February 04, 2026, STT GDC announced the signing of definitive agreements wherein the funds managed by KKR1 (global investment firm) and Singtel2 (telecommunications group) will acquire 82% stake in STT GDC, from STT Communications Ltd3 , for a total consideration of approximately USD 5.1 billion. As on date, KKR & Singtel cumulatively hold 18% stake in STT GDC in the form of redeemable preference shares and post this transaction, KKR will hold 75% equity stake in STT GDC, while the remaining shareholding will be held by Singtel, considering the conversion of existing redeemable preference shares that both KKR and Singtel hold in STT GDC. The transaction is expected to be completed in the second half of CY2026. ICRA has taken note of this development and expects no material change in support philosophy from STT GDC to STT GDC India. STT GDC India will continue to be a step-down subsidiary (74% shareholding) of STT GDC and an associate (26% shareholding) of TCL. ICRA will continue to monitor the developments in this regard to assess its impact on credit profile of the company.