Sify Tech to issue equity shares of Rs 397 cr

Sify Technologies Ltd has said it is proposing to issue equity shares up to an aggregate of approximately $86 million (around Rs 397.49 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 promoter group entities affiliated with Raju Vegesna, Chief Executive Officer and Managing Director, and Ananda Raju Vegesna, Executive Director and brother of Raju Vegesna.

The share proposed to be issued amount to 125 million equity shares of Rs 10 each, at a purchase price of 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 of shares is for unlisted Indian equity shares. The proposed shares will not be registered in the United States or traded on the Nasdaq as American Depository Shares,” according to the company’s release.

The proposal for a preferential allotment of shares has been approved by the Board of Directors of Sify Technologies Ltd at a board meeting held on August 4, 2010, and subsequently recommended to the shareholders at the board meeting held on August 24, 2010, for their approval at the ensuing annual general meeting to be held on September 27, 2010. The proposed allotment of shares is subject to the approval of shareholders by a special resolution and relevant statutory and regulatory authorities, wherever applicable.

Sify Technologies is a managed enterprise and consumer internet services companies in India, offering end-to-end solutions with a comprehensive range of products delivered over a common telecom data network infrastructure reaching over 600 cities and towns in India.