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Sify Technologies Ltd. Announces ADS Ratio Change to Be Effective on October 4, 2024

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Sify Technologies (Nasdaq: SIFY) has announced an ADS Ratio Change effective October 4, 2024. The ratio will change from 1 ADS representing 1 equity share to 1 ADS representing 6 equity shares. This change is equivalent to a one-for-six reverse ADS split. Key points:

- No impact on ADS holders' proportional equity interest
- No change to company's equity shares
- Certificated ADS holders must surrender ADSs for exchange
- Uncertificated ADSs will be automatically exchanged
- Fractional new ADSs will be sold, with proceeds distributed to holders
- ADSs will continue trading on NASDAQ under 'SIFY' symbol
- New CUSIP: 82655M206

The ADS price is expected to increase proportionally, though this is not guaranteed.

Sify Technologies (Nasdaq: SIFY) ha annunciato un cambiamento del rapporto ADS effettivo dal 4 ottobre 2024. Il rapporto cambierà da 1 ADS che rappresenta 1 azione ordinaria a 1 ADS che rappresenta 6 azioni ordinarie. Questo cambiamento equivale a un raggruppamento inverso di ADS uno a sei. Punti chiave:

- Nessun impatto sull'interesse azionario proporzionale dei detentori di ADS
- Nessuna modifica alle azioni ordinarie della società
- I detentori di ADS certificati devono consegnare gli ADS per lo scambio
- Gli ADS non certificati saranno automaticamente scambiati
- Gli ADS nuovi frazionari saranno venduti, con i proventi distribuiti ai detentori
- Gli ADS continueranno a essere negoziati su NASDAQ sotto il simbolo 'SIFY'
- Nuovo CUSIP: 82655M206

Si prevede che il prezzo degli ADS aumenti proporzionalmente, anche se ciò non è garantito.

Sify Technologies (Nasdaq: SIFY) ha anunciado un cambio en la relación de ADS que entrará en vigor el 4 de octubre de 2024. La relación cambiará de 1 ADS que representa 1 acción de capital a 1 ADS que representa 6 acciones de capital. Este cambio equivale a un dividendo inverso de ADS uno por seis. Puntos clave:

- Sin impacto en el interés proporcional de capital de los tenedores de ADS
- Sin cambios en las acciones de capital de la empresa
- Los tenedores de ADS certificados deben entregar los ADS para el intercambio
- Los ADS no certificados se intercambiarán automáticamente
- Los nuevos ADS fraccionarios serán vendidos, y los ingresos distribuidos a los tenedores
- Los ADS seguirán cotizando en NASDAQ bajo el símbolo 'SIFY'
- Nuevo CUSIP: 82655M206

Se espera que el precio de los ADS aumente proporcionalmente, aunque esto no está garantizado.

Sify Technologies (Nasdaq: SIFY)가 2024년 10월 4일부터 ADS 비율 변경을 발표했습니다. 비율이 1 ADS가 1주를 나타내는 것에서 1 ADS가 6주를 나타내는 것으로 변경됩니다. 이 변경은 1대 6 비율의 ADS 역전환에 해당합니다. 주요 사항:

- ADS 보유자의 비례 주식 지분에 영향 없음
- 회사의 보통주에 변화 없음
- 인증된 ADS 보유자는 교환을 위해 ADS를 양도해야 함
- 비인증 ADS는 자동으로 교환됨
- 새로운 분수 ADS는 판매되며, 수익금은 보유자에게 분배됨
- ADS는 'SIFY' 기호로 NASDAQ에서 계속 거래됨
- 새로운 CUSIP: 82655M206

ADS 가격은 비례적으로 증가할 것으로 예상되지만, 이는 보장되지 않습니다.

Sify Technologies (Nasdaq: SIFY) a annoncé un changement du ratio ADS prenant effet le 4 octobre 2024. Le ratio passera de 1 ADS représentant 1 action à 1 ADS représentant 6 actions. Ce changement équivaut à un rachat inversé d'ADS un pour six. Points clés :

- Aucun impact sur l'intérêt proportionnel en actions des détenteurs d'ADS
- Aucun changement des actions de la société
- Les détenteurs d'ADS certifiés doivent rendre leurs ADS pour échange
- Les ADS non certifiés seront échangés automatiquement
- Les nouveaux ADS fractionnaires seront vendus, et les produits seront distribués aux détenteurs
- Les ADS continueront d'être négociés sur NASDAQ sous le symbole 'SIFY'
- Nouveau CUSIP : 82655M206

On s'attend à ce que le prix des ADS augmente proportionnellement, bien que cela ne soit pas garanti.

Sify Technologies (Nasdaq: SIFY) hat eine Änderung des ADS-Verhältnisses bekanntgegeben, die am 4. Oktober 2024 wirksam wird. Das Verhältnis ändert sich von 1 ADS, das 1 Stammaktie repräsentiert, zu 1 ADS, das 6 Stammaktien repräsentiert. Diese Änderung entspricht einem 1-zu-6 Rücksplit der ADS. Wichtige Punkte:

- Keine Auswirkungen auf das proportionale Aktieninteresse der ADS-Inhaber
- Keine Änderungen der Unternehmensanteile
- Zertifizierte ADS-Inhaber müssen ihre ADS zur Umtauschung abgeben
- Unzertifizierte ADS werden automatisch umgetauscht
- Bruchstücke neuer ADS werden verkauft, und der Erlös wird an die Inhaber verteilt
- ADS werden weiterhin an der NASDAQ unter dem Symbol 'SIFY' gehandelt
- Neuer CUSIP: 82655M206

Es wird erwartet, dass der ADS-Preis proportional steigt, dies ist jedoch nicht garantiert.

Positive
  • Potential increase in ADS price due to the ratio change
  • Simplification of ADS structure with 1:6 ratio
Negative
  • Potential fractional ADS sales may result in small cash distributions instead of shares
  • Administrative burden for certificated ADS holders who must manually exchange their shares

Insights

The ADS ratio change announced by Sify Technologies is a significant development for investors. This 1:6 ratio adjustment effectively acts as a reverse split for the ADSs, which could have several implications:

  • Potential boost to ADS price: The consolidation may lead to a higher per-ADS price, potentially improving the stock's perception and attracting more institutional investors.
  • Reduced liquidity risk: A higher ADS price could help Sify maintain its NASDAQ listing, avoiding the risk of delisting due to low share prices.
  • No change in ownership: Shareholders' proportional ownership remains unaffected, preserving their equity stake.

However, investors should note that while the ADS price is expected to increase proportionally, there's no guarantee it will maintain this level. The market's reaction to such corporate actions can be unpredictable. Additionally, the treatment of fractional shares through sale and cash distribution may result in minor adjustments to some investors' holdings.

Overall, this move appears to be a strategic decision to enhance Sify's market position and investor appeal, but its long-term impact will depend on the company's fundamental performance and market conditions.

CHENNAI, India, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Sify Technologies Ltd. (Nasdaq: Sify) (the “Company”), a leading integrated information communications technology (or ICT) Solutions and Services provider in India, today announces that the previously announced ratio change of its American Depositary Shares (“ADSs”) to equity shares from one (1) ADS representing one (1) equity share to one (1) ADS representing six (6) equity shares (the “ADS Ratio Change”) will become effective on October 4, 2024 (the “Effective Date”).

For the Company’s ADS holders, the ADS Ratio Change will have the same effect as a one-for-six reverse ADS split and will have no impact on an ADS holder’s proportional equity interest in the Company, except to the extent that the ratio change would have resulted in an ADS holder owning fractional ADSs. There will be no change to the Company’s equity shares.

On the Effective Date, registered holders of the Company’s ADSs held in certificated form will be required on a mandatory basis to surrender their certificated ADSs to Citibank, N.A., the depositary bank (the “Depositary”), for cancellation and will receive one (1) new ADS in exchange for every six (6) existing ADSs surrendered. Holders of uncertificated ADSs in The Depository Trust Company and Direct Registration System will have their ADSs automatically exchanged and need not take any action. The exchange of every six (6) then-held (existing) ADSs for one (1) new ADS will occur automatically at the Effective Date, with the then-held ADSs being cancelled and new ADSs being issued by the Depositary.

The Company’s ADSs will continue to be traded on the NASDAQ Capital Market under the symbol “SIFY”, under the following new CUSIP:

New ADS CUSIP     82655M206
   

No fractional new ADSs will be issued in connection with the change in the ADS Ratio Change. Instead, fractional entitlements to new ADSs will be aggregated and sold by the Depositary and the net cash proceeds from the sale of the fractional ADS entitlements will be distributed to the applicable ADS holders by the Depositary, in each case in accordance with the Depositary’s then current procedures and practices and after any deductions as provided in the deposit agreement between the Company and the Depositary for the ADSs.

As a result of the ADS Ratio Change, the ADS price is expected to increase proportionally, although the Company can give no assurance that the ADS price after the ADS Ratio Change will be equal to or greater than six times the ADS price before the change.

About Sify Technologies Limited

A Fortune India 500 company, Sify Technologies Limited is a comprehensive ICT service & solution provider. With cloud at the core of its solutions portfolio, the Company is focused on the changing ICT requirements of the emerging digital economy and the resultant demands from large, mid and small-sized businesses. 

The Company’s infrastructure comprises state-of-the-art data centers, the largest MPLS network, partnership with global technology majors and deep expertise in business transformation solutions modelled on the cloud, making it an ideal partner for start-ups, SMEs and even large enterprises on the verge of a revamp.

More than 10,000 businesses across multiple verticals have taken advantage of our data centers, networks and digital services to help conduct their business from more than 1,700 cities in India. Internationally, the Company has presence across North America, the United Kingdom and Singapore.

Safe Harbor Statement

This release contains certain “forward-looking statements” relating to the Company and its business. These forward-looking statements are often identified by the use of forward-looking terminology such as “expects”, “intends”, “will”, or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as expected, intended or planned. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

For further information, please contact:

Sify Technologies Limited
Mr. Praveen Krishna
Investor Relations & Public Relations
+91 9840926523
praveen.krishna@sifycorp.com
     20:20 Media
Nikhila Kesavan
+91 9840124036
nikhila.kesavan@2020msl.com
     Weber Shandwick

Lucia Domville
+1-212 546-8260
LDomville@webershandwick.com
     

FAQ

When will Sify Technologies' (SIFY) ADS Ratio Change take effect?

Sify Technologies' ADS Ratio Change will take effect on October 4, 2024.

What is the new ADS to equity share ratio for Sify Technologies (SIFY)?

The new ratio will be one (1) ADS representing six (6) equity shares, changed from the previous one (1) ADS to one (1) equity share ratio.

Will Sify Technologies (SIFY) continue to trade on NASDAQ after the ADS Ratio Change?

Yes, Sify Technologies will continue to trade on the NASDAQ Capital Market under the symbol 'SIFY' after the ADS Ratio Change.

What happens to fractional ADSs resulting from Sify Technologies' (SIFY) ratio change?

Fractional new ADSs will be aggregated and sold by the Depositary, with net cash proceeds distributed to the applicable ADS holders.

Sify Technologies Limited

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