Sify to raise $57 million through stake sale to Ananda Vegesna's Infinity Satcom Universal

15 April 2008

Sify Technologies says it has raised $57, million from a stake sale to Infinity Satcom Universal Private Limited at $4.46 per share. Sify is among the largest internet, network and e-commerce services providers in India.

Infinity Satcom is controlled by Ananda Raju Vegesna, an executive director of Sify Technologies Limited, and brother Sify's managing director and CEO Raju Vegesna.

The share purchase by Infinity Satcom Universal Private Limited was approved by Sify's shareholders at the company's extraordinary general meeting on 17 March.

Sify says it sold the shares to Infinity Starcom in an offshore transaction, and no selling efforts were made in the United States. The shares issued in the unregistered sale will not be registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.

This means the shares sold to infinity will not be registered in the United States and nor will they be traded in the US as American depositary shares.

The company says its board of directors also approved a waiver of certain provisions of the 'standstill agreement' on 10 February between the company, Infinity Capital Ventures LP and Raju Vegesna, dated 10 November 2005 filed on Form 6-K on 21 November 2005.