Sify Technologies to raise $57 million

April 15th, 2008 - 8:05 pm ICT by admin  

Chennai, April 15 (IANS) Internet services firm Sify Technologies Ltd will raise around $57 million (over Rs.2 billion) with a premium equity issue to Infinity Satcom Universal Pvt Ltd, the company said here Tuesday. “The company will issue 12,817,000 Indian Equity Shares having a par value of Rs.10 to Infinity Satcom at Rs.175 per share. The funds will be used for expanding our business,” M.P. Vijayakumar, Sify’s chief financial officer, told IANS.

With this fresh infusion, Sify Technologies’ equity base will go up to around Rs.556 million from the current level of Rs.428 million.

Infinity Satcom is controlled by Ananda Raju Vegesna, executive director at Sify Technologies.

He is the brother of Raju Vegesna, managing director and CEO, Sify Technologies.

After this transaction, Infinity Satcom will hold 12 percent stake in the Nasdaq-listed Sify Technologies while Infinity Capital Ventures, controlled by Raju Vegesna, owns 42 percent.

According to Chennai-based Sify Technologies, the shares sold will not be traded in the US as it would not be registered under that country’s Securities Act.

Meanwhile, the firm’s board approved the merger of Sify Communications, in which it holds 74 percent stake. Infinity Satcom holds the balance 26 percent.

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