When Raju issued himself 120m private shares he increased the total share count by 3.3 times. Therefore the share value today @$2.11 is equal to $6.96 prior to the issuance,(close to the price I started selling when I recognized the effect). That's why the PPS is where it is today, AND if SIFY needs to raise more cash in the future Raju could do another round of privately issued shares that would further cheapen the value of the existing shares.Imagine what another 100m shares @.50c or even less, would do to the PPS? Remember, he can do anything he wants, he owns 85% of the company, so far. Thats why Insitutions bailed, along with the other scenarios mentioned. Is the situation looking clearer now?