Sify Technologies Faces Nasdaq Non-Compliance After Board Resignation

Sify Technologies Ltd. announced that following the resignation of Dr. Ajay Kumar from its Board of Directors to fulfill a constitutional role assigned by the President of India, the company is no longer in compliance with Nasdaq listing rules requiring a majority of independent directors and a minimum of three audit committee members. Nasdaq notified Sify of the non-compliance on June 5, 2025, but granted a cure period for the company to regain compliance by either its next annual shareholders' meeting or May 15, 2026, whichever comes first; if the meeting occurs before November 11, 2025, compliance must be demonstrated by that date. Although the notice does not affect the current listing or trading of Sify's American Depositary Shares on the Nasdaq Capital Market, the company is actively seeking a qualified independent director to fill the vacancies and restore compliance. Financially, Sify reported a 12% increase in revenue and EBITDA over the previous year, alongside network infrastructure expansion and strong demand for data center colocation services. Despite operational growth, the company faces challenges from declining profitability and the absence of valuation benchmarks. Overall, Sify continues to pursue strategic growth initiatives while addressing governance requirements to maintain its Nasdaq listing.