Sify Technologies Ltd. Regains Compliance with Nasdaq Minimum Bid Price Requirement

Rhea-AI Summary

Sify Technologies (Nasdaq: SIFY) has regained compliance with Nasdaq's minimum bid price requirement for continued listing. The company received a notification letter from Nasdaq on October 18, 2024, confirming that the matter is now closed. This follows a previous notification in July 2024 that Sify was not in compliance as its American Depositary Shares (ADSs) had closed below $1.00 for 30 consecutive business days.

To address this, Sify implemented a 1-for-6 ratio change of its ADSs effective October 4, 2024. Subsequently, the company's ADSs maintained a closing bid price at or above $1.00 for 10 consecutive business days from October 4 to October 17, 2024, thus meeting Nasdaq's Listing Rule 5550(a)(2) requirements.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Successfully implemented a 1-for-6 ratio change of ADSs to meet compliance
• Maintained closing bid price above $1.00 for 10 consecutive business days

Negative

• None.

Insights

Financial Analyst

Sify Technologies' regaining compliance with Nasdaq's minimum bid price requirement is a positive development for the company. This news effectively removes the risk of delisting, which could have had severe consequences for investor confidence and the company's ability to raise capital.

The 1-for-6 ratio change of ADSs implemented on October 4, 2024, was a strategic move to boost the share price above the $1.00 threshold. While this doesn't change the company's fundamental value, it does improve market perception and ensures continued access to U.S. capital markets.

For investors, this compliance means:

• Reduced regulatory risk
• Potentially improved liquidity
• Maintained visibility on a major exchange

However, it's important to note that while this addresses a technical requirement, it doesn't necessarily reflect an improvement in Sify's underlying business performance or financials. Investors should continue to monitor the company's operational metrics and growth strategies in the competitive ICT sector in India.

CHENNAI, India, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Sify Technologies Ltd. (Nasdaq: Sify) (the “Company”), a leading integrated information communications technology (or ICT) Solutions and Services provider in India, received a letter (the “Notification Letter”) from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”) on October 18, 2024, informing the Company that it has regained compliance with the minimum bid price requirement for continued listing set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”) and the matter is closed.

As announced in July 2024, the Company was notified by Nasdaq that it was not in compliance with the Minimum Bid Price Requirement, as the closing bid price of the Company's American Depositary Shares ("ADSs") had been below $1.00 for 30 consecutive business days. Effective October 4, 2024, the Company effected a 1-for-6 ratio change of its ADSs.

The Notification Letter confirmed that the Company evidenced a closing bid price of the Company’s ADSs on Nasdaq at or greater than the $1.00 per ADS minimum requirement for 10 consecutive business days from October 4, 2024 to October 17, 2024 and that the Company has regained compliance with the Minimum Bid Price Requirement.

About Sify Technologies Limited

A multiple years winner of the Institute of Director’s Golden Peacock award for Corporate Governance, 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 did Sify Technologies (SIFY) regain compliance with Nasdaq's minimum bid price requirement?

Sify Technologies regained compliance with Nasdaq's minimum bid price requirement on October 18, 2024, as confirmed by a notification letter from Nasdaq.

What action did Sify Technologies (SIFY) take to regain Nasdaq compliance?

Sify Technologies implemented a 1-for-6 ratio change of its American Depositary Shares (ADSs) effective October 4, 2024, to meet Nasdaq's minimum bid price requirement.

How long did Sify Technologies (SIFY) maintain the required closing bid price to regain Nasdaq compliance?

Sify Technologies maintained a closing bid price at or above $1.00 for 10 consecutive business days, from October 4 to October 17, 2024, to regain Nasdaq compliance.