Sify to issue equity shares

Sify Technologies Ltd is proposing to issue equity shares of up to $86 million (around Rs 97.49 crore) to a group of investors affiliated with Sify’s promoter group. The proceeds from the proposed issuance will be utilised for working capital, ongoing capital expenditure and future expansion. The company would issue 125 million equity shares of Rs 10 each, at Rs 32 per share, which includes a premium of Rs 22 per share or $0.69 per share, based on an exchange rate of $1 to Rs 46.22.

“The shares will be issued at a discount to the prevailing American Depositary Share market price, since the proposed allotment is for unlisted Indian equity shares. It will not be registered in the US or traded on Nasdaq as ADS,” according to a company release. The promoter group entities are affiliated with Raju Vegesna, CEO and MD and Ananda Raju Vegesna, executive director and brother of Vegesna.