CHENNAI, India - Sify Technologies Ltd. (NASDAQ:SIFY), an integrated ICT solutions and services provider in India, has notified NASDAQ of its plan to delist its ADS Rights from the NASDAQ Capital Market. The delisting is in accordance with the terms outlined in the company's rights offering prospectus, dated June 3, 2024.
The company distributed transferable rights to subscribe for new equity shares in the form of ADSs to holders of ADSs, with these ADS Rights set to trade on NASDAQ under the ticker symbol SIFYR from today until June 18, 2024.
Following the close of trading at 4:00 p.m. on June 18, no further trading of the ADS Rights will occur on NASDAQ, and they will be delisted. These rights will expire on June 21, 2024, and no arrangements for listing or quotation elsewhere have been made.
Shareholders may sell their ADS Rights at any time before the delisting or may instruct Citibank, N.A., the ADS Rights Agent, to sell on their behalf prior to 5:00 p.m. on June 17, 2024, as detailed in the prospectus. The company anticipates filing a Form 25 with the SEC and NASDAQ about the voluntary delisting of its ADS Rights on or around today.
The press release clarifies that this announcement is not an offer to sell or a solicitation to buy these securities in any jurisdiction where such an offer or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
In the release, Sify Technologies includes forward-looking statements regarding the company's business prospects. Still, it warns investors not to place undue reliance on these statements due to various known and unknown risks and uncertainties that could cause actual results to differ materially. The company commits to updating these forward-looking statements as required by securities laws.
This news article is based on a press release statement from Sify Technologies Ltd.
In other recent news, Sify Technologies has reported a mixed financial performance for the fiscal year 2023-2024. The company's overall revenue saw an increase of 7%, reaching INR 35,634 million, with data center colocation services and network centric services witnessing growth of 9% and 10% respectively.
Still, profitability experienced a significant decline, with profit before tax and profit after tax decreasing by 77% and 93%. This comes amidst Sify's continued investment in infrastructure and services, including a $7.22 million investment in Silicon Valley startups and a proposed rights offering to finance expansion of data centers and digital services business growth.
Two new greenfield data center projects in Noida and Chennai are expected to go live in fiscal 2025. Recent developments also show a slight decrease of 1% in the company's digital services revenue. Analysts from various firms have been observing these developments closely, noting the company's commitment to supporting digital transformation in India despite the challenging market environment.
InvestingPro Insights
In light of Sify Technologies Ltd.'s recent announcement to delist its ADS Rights from the NASDAQ Capital Market, investors may be evaluating the company's financial health and stock performance. According to InvestingPro data, Sify has a market capitalization of $163.2 million and is currently trading at a high P/E ratio of 537.55, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 259.61. This suggests a premium valuation for the company relative to its earnings.
Despite the high earnings multiple, Sify's revenue has grown 6.68% over the last twelve months as of Q4 2024, indicating some positive momentum in the company's business operations. Additionally, the company's gross profit margin stands at a robust 37.2%, reflecting a strong ability to control costs relative to revenue.
InvestingPro Tips highlight several critical aspects of Sify's financial landscape. For instance, the company is grappling with a significant debt burden and is quickly burning through cash, which could be a cause for concern among investors. Moreover, the stock has experienced a steep decline over the last week, with a one-week price total return of -19.07%, and has generally exhibited high price volatility. This could indicate a higher risk profile for the stock.
For investors seeking a deeper dive into Sify Technologies' financials and stock performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/SIFY. These tips provide insights such as net income growth expectations for the year and the company's status as a prominent player in the Diversified Telecommunication Services industry. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 15 InvestingPro Tips that could help shape a more informed investment strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.