Financial Daily from THE HINDU group of publications
Friday, Jan 31, 2003
Financial Daily from THE HINDU group of publications Friday, Jan 31, 2003 |
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ISPs Markets - Stock Markets Sify plans to go for Indian listing Raja Simhan T.E.
Mr R. Ramaraj
CHENNAI, Jan. 30 SIFY Ltd is looking at an Indian listing. "Though it is too early to give a time frame or the size of the listing, the item is on our agenda," the company's CEO and Managing Director, Mr R. Ramaraj, told Business Line. "If we do the Indian listing, Sify would be the first Indian company to first list overseas, on the Nasdaq, and later in India," he added. According to Mr Ramaraj, the need for Indian listing was to offer liquidity to the company's Indian shareholders, who are about 70 per cent. Liquidity would also be required to issue stock options to the employees. Sify would also require currency for possible future acquisition of Indian companies. "We do not have enough cash to fund acquisition and need stocks to do stock swap," he said. It may be recalled that in October last year Sify received a fresh investment of $20 million from Softbank Asia Infrastructure Fund (SAIF), through a company controlled by SAIF and Venture Tech Solutions. Following this, the Satyam Computers' holding in Sify reduced to 35 per cent, SAIF has 21.7 per cent, SA Regional Fund 11.3 per cent, Venture Tech 11.7 per cent, Nasdaq ADS (American Depository Shares) 17 per cent and others 4.3 per cent. When asked why he could not give a time frame for the Indian listing, Mr Ramaraj said that the current domestic market condition was not right. Further, "we want the company to be profitable first,'' which would give more confidence to investors. There is no urgency, since we have cash, he said. As on December 31, 2002, the company had a cash reserve of Rs 115 crore, he added. Asked when the company would become profitable, Mr Ramaraj said he could not give a time frame because it would mean providing the company's `guidance'. However, according to various analysts, Sify would be profitable in April quarter, he added. Meanwhile, on Wednesday, Sify's ADS closed at $4.06, up 0.04 per cent. As on January 29, the company's shares outstanding was 32.79 million with a market value of $133.14 million. The 52-week high of the company's ADS was $8.84 and a low of $0.88, says information available on the Nasdaq Web site.
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