According to a report in Economic Times, Sify’s (NASDAQ:SIFY) top brass including CEO, R. Ramaraj are on their way out due to the growing strife with Infinity Capital’s Raju Vegesna. Infinity Capital and thus Raju Vegesna owns about 40% of Sify, which it bought last year from Satyam (SAY).
According to Economic Times, 20-25 top executives could be on their way out and some of them, including Mr. Ramaraj, have already put in their papers. They also state that no new management team is in sight as of now and this may lead to operational uncertainty. Possibly the worst part of the story is the following “In recent months the media had speculated about Sify hiving off some of its existing businesses like the nationwide network of internet parlours, which operate under the iWay brand (source: Economic Times).
I sort of expected this for the last few weeks but couldn’t confirm this story. I received a number of hits on my site with keywords such Raju Vegesna and Ramaraj resignation. I am not sure what to think about this but I wasn’t impressed with the current managment team in place to say the least. When Slicon Valley based Raju Vegesna bought a controlling stake in Sify, it gave me hope of some major organizational changes. However, I am not sure if this was a planned exit and if Raju Vegesna already has a new management team in mind.
Is Sify going to be bought out? This seems like a big possibility now and recently Sify’s CEO, R. Ramaraj, denied rumors about them being bought by Yahoo (NASDAQ:YHOO). I am not sure if I started the rumor based on a article I wrote here. I don’t remember reading about a Yahoo acquisition anywhere else. Was the company being bought or forming partnerships a sticking point between R. Ramaraj and Raju Vegesna? Raju still hasn’t made a statement since he bought Sify about what his long term vision is?
Here’s hoping that we get some answers during today's earnings release and the ensuing conference call.
SIFY 1-yr chart: