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Mumbai, Aug 22: Sify, the Nasdaq-listed subsidiary of Satyam Computer Services, appears to be weighing various options to avert a delisting in the event of the American Depository Shares (ADS) staying below the $1 mark.
In its latest filing to the Securities Exchange Com-mission (SEC), Satyam Computers has said, “the price of Infoway's ADSs on the Nasdaq National Market has recently closed below $1.00. Infoway's equity share-to-ADS ratio is currently 1-to-4, and Infoway may be required to adjust its equity share-to-ADS ratio in order to maintain its Nasdaq National Market listing.”

What this simply implies is a change in the ratio of equity shares to ADS in a manner which will reduce the number of underlying shares per ADS in the market, which should see a rise in the ADS price.

When contacted company officials said, “This is a standard caution (issued by us). Stock splits and reverse splits are business decisions made by the company in the interest of the investors. Sify is unlikely to be affected by the $1 rule. The company has the ability to do a reverse split of its ADRs any time the company chooses and stay above the $1 price.”

Though Sify is not listed in the domestic market, there will be underlying shares and currently the ratio is one domestic share equivalent to four ADSs.

The Sify ADS closed at $0.69 on the Nasdaq on Wednesday, up 1.32 per cent over the previous day's close.
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