Details on the dilution of 120 million shares which should only be considered in india as indian shares
CHENNAI, India, Aug. 28 /PRNewswire-FirstCall/ -- Sify Technologies Limited (Nasdaq: SIFY), a leader in Enterprise and Consumer Internet Services in India with global delivery capabilities, today announced that it is proposing to issue equity shares up to an aggregate of approximately USD 86 million to a group of investors affiliated with Sify's promoter group, including entities affiliated with Mr. Raju Vegesna , Chief Executive Officer and Managing Director and Mr. Ananda Raju Vegesna , Executive Director and brother of Raju Vegesna .
The share issuance is proposed to be an issuance of 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 USD 0.69 per shares, based on an exchange rate of $1USD to INR 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 NASDAQ as American Depositary Shares.
The proposal for a preferential allotment of shares has been approved by the Board of Directors of Sify Technologies Limited 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.
The proceeds from the proposed issuance will be utilised for working capital, ongoing capital expenditure and future expansion.
This is old news and the reason all the Instututions sold out after this news came out. Also if you do some more investigation you will see Raju has already stated he is going to sell out or do an Indian IPO. The company has no future for US stockholders. I owned it from 2004 until I sold out two years ago and know this company inside out.