Sify Technologies Ltd. Announces Key Dates for Rights Offering
Sify Technologies (Nasdaq: Sify) announced key dates for its upcoming rights offering. The company plans to issue up to 250,000,000 new equity shares and ADSs. Shareholders and ADS holders will receive transferable subscription rights at no charge, allowing them to purchase new shares or ADSs at set prices.
The record date for equity shares and ADSs is May 31, 2024. Holders of ADSs will receive 1.36364 ADS rights per ADS, allowing them to buy new ADSs at $0.14 each. Equity shareholders will also receive 1.36364 rights per share to buy new shares at Rs. 10 each.
The subscription period runs from June 7, 2024, to June 21, 2024. Net proceeds will fund business expansion in Network centric services, Data Center services, and Digital Services, along with general corporate purposes.
The offering is contingent on SEC registration becoming effective, and Sify reserves the right to modify or cancel the offering.
- Plans to issue up to 250,000,000 new equity shares and ADSs.
- Subscription rights provided at no charge to current equity and ADS holders.
- Subscription period set from June 7 to June 21, 2024.
- Net proceeds will be used for business expansion and corporate purposes.
- Offering is subject to SEC registration becoming effective.
- Company reserves the right to cancel or terminate the offering at any time.
- Potential dilution of existing shares due to new equity issuance.
Insights
The announcement of Sify Technologies Ltd.'s rights offering is a notable event for investors. A rights offering allows current shareholders to purchase additional shares at a discount, which can be attractive. In this case, the offering price is set at
From a financial perspective, the use of proceeds is critical. Sify plans to utilize the funds for expanding Network-centric services, Data Center services and Digital Services, which are core to their business. If executed well, this could enhance their competitive edge and drive growth in the long term. Additionally, the use of proceeds for general corporate purposes could help in managing operational expenses, indicating a strategic approach to growth and stability.
Investors should consider the potential for short-term dilution against the long-term benefits of expanded services and enhanced infrastructure. The strategy's success will largely depend on market reception and the subsequent execution of expansion plans.
The Company today announced its record date and expected subscription period for its previously-announced rights offering to issue up to 250,000,000 new equity shares, including equity shares represented by American Depositary Shares ("ADSs").
In the rights offering, the Company will distribute, at no charge, (1) to the holders of its equity shares, transferable rights to subscribe for new equity shares and, (2) through Citibank, N.A., the depositary for the ADSs (the "Depositary"), to holders of ADSs, transferable rights to subscribe for new equity shares in the form of ADSs. Holders of ADSs will receive 1.36364 ADS rights for each ADS owned of record at 5:00 p.m. (
The subscription period for the rights offering is expected to commence on June 7, 2024, and to terminate on June 21, 2024. The Company will disclose the final results of the rights offering following the expiration date.
The net proceeds of the Rights Offering are expected to be utilized for expansion of the business in developing Network centric services, Data Center services and Digital Services and for general corporate purposes.
Other Important Information
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The proposed rights offering will be made pursuant to such registration statement and a prospectus to be filed with the Securities and Exchange Commission prior to the commencement of the proposed rights offering. A copy of the prospectus forming a part of the Registration Statement, when available, may be obtained free of charge at the website maintained by the Securities and Exchange Commission at www.sec.gov or by contacting D.F. King & Co., Inc, the Company's information agent for the Rights Offering, located at 48 Wall Street, 22nd Floor,
The information herein, including the expected terms of the proposed rights offering, is not complete and is subject to change. The Company reserves the right to cancel or terminate the planned rights offering at any time. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
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.
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SOURCE Sify Technologies Ltd.
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