<SEC-DOCUMENT>0001575872-24-001085.txt : 20250220
<SEC-HEADER>0001575872-24-001085.hdr.sgml : 20250220
<ACCEPTANCE-DATETIME>20241017111724
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001575872-24-001085
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20241017

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SIFY TECHNOLOGIES LTD
		CENTRAL INDEX KEY:			0001094324
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
		ORGANIZATION NAME:           	06 Technology
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		TIDEL PARK, 2ND FLOOR
		STREET 2:		NO. 4, CANAL BANK ROAD, TARAMANI
		CITY:			CHENNAI 600 113
		STATE:			K7
		ZIP:			0
		BUSINESS PHONE:		91 44 2254 0770

	MAIL ADDRESS:	
		STREET 1:		TIDEL PARK, 2ND FLOOR
		STREET 2:		NO. 4, CANAL BANK ROAD, TARAMANI
		CITY:			CHENNAI 600 113
		STATE:			K7
		ZIP:			0

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SIFY LTD
		DATE OF NAME CHANGE:	20030113

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SATYAM INFOWAY LTD
		DATE OF NAME CHANGE:	19990901
</SEC-HEADER>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIFY TECHNOLOGIES LIMITED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Tidel Park, Second Floor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>No. 4, Rajiv Gandhi Salai, Taramani</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Chennai 600 113</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>India</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Division of Corporation Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Office of Technology</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Washington D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Attention: Claire DeLabar</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 18pt">Re:</TD><TD>Sify Technologies Ltd.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt">Form 20-F for the Fiscal Year Ended March 31, 2024</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt">Response dated October 1, 2024</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt">File No. 000-27663</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Dear Ms. DeLabar and Mr. Littlepage,</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This letter is submitted on behalf of Sify Technologies
Limited (the &ldquo;Company&rdquo;, &ldquo;Sify&rdquo; or &ldquo;we&rdquo;) in response to the comments of the staff members of the Securities
and Exchange Commission (the &ldquo;Staff&rdquo;), as set forth in your letter (the &ldquo;Comment Letter&rdquo;) to M P Vijay Kumar dated
October 3, 2024 with respect to the Company&rsquo;s Annual Report on Form 20-F for the fiscal year ended March 31, 2024 (the &ldquo;Annual
Report&rdquo;). For reference purposes, the text of your letter has been reproduced herein in boldface text with the response below each
comment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt"><B>1.</B></TD><TD STYLE="text-align: justify"><B>We note your response to prior comment 4 to our letter dated August 14, 2024, where you provide your
analysis to support you conclusion that the puttable compulsory convertible debentures (&ldquo;puttable CCDs&rdquo;) qualify for the exception
to the definition of a financial liability under paragraph 16A and 16B of IAS 32. Please respond to the following: </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><B>We note that Clause 12.1 of the Debenture Subscription Agreement dated November 1, 2021 indicates that
&#8220;the Investor CCDs shall rank senior to all other classes of compulsory convertible preference shares and equity shares currently
issued and allotted by the Company or as may be issued and allotted in future&#8221; and that &#8220;In case of a Insolvency Event, Investor
CCDs shall rank senior to all other classes of compulsory convertible preference shares and equity, in the distribution waterfall of liquidation
proceeds. Tell us how this clause does not cause the puttable CCDs to not meet the criteria outlined in 16A(b)(i) and par. AG14C of IAS
32.</B></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Response:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These CCDs are issued by the Company&rsquo;s wholly-owned
subsidiary, Sify Infinit Spaces Limited (&ldquo;SISL&rdquo;). SISL has different classes of equity that are issued and outstanding as
at March 31, 2024 as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify">Class 1: Equity shares,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify">Class 2: Compulsorily Convertible Preference
Shares (CCPS) and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify">Class 3: Compulsorily Convertible Debentures
(CCDs)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company believes that the ranking of the CCDs senior to other classes
of equity does not of itself cause the puttable instrument to not meet the criteria outlined in paragraph 16A(b)(i). Pursuant to Clause
12.1 of the Debenture Subscription Agreement dated November 1, 2021 (&ldquo;DSA&rdquo;), these CCDs rank <I>pari passu </I>with the other
CCDs issued by SISL, which may be issued only subject to the prior consent of the Investor or under certain permitted circumstances, and
which would also be considered as part of the same class of equity. SISL does not have any other CCDs that are issued other than the above
class of equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These CCDs do not have any priority on claim to liquidation
proceeds over the other CCDs that belong to this class of equity. Pursuant to Clause 12.1 of the DSA, these CCDs shall rank senior only
to all other classes of CCPS and Equity which are issued and allotted as on that date or in future, in the distribution of waterfall of
liquidation proceeds. IAS 32 does not preclude the existence of several classes of equity with differential rights. Hence, the Company
believes that these puttable CCDs meet the criteria outlined in paragraph 16A(b)(i). As there is no preferential right that is available
to these CCDs within that class of equity, the Company believes there is no relevant application of AG 14C of IAS 32.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Reference is made to IFRS Interpretation Committee
(Committee) discussion on &ldquo;&lsquo;IAS 32 Financial Instruments: Presentation-Classification of puttable and perpetual instruments&rdquo;
in its meeting held on March 5, 2009, where it noted that IAS 32 does not preclude the existence of several classes of equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><B>Please point to the provisions in your agreements which provide that the puttable CCDs are entitled
to a pro rata share of the Company&#8217;s net assets in the event of liquidation, as required by paragraph 16A(a) of IAS 32.</B></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Response: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to Clause 12.1 of the DSA, these CCDs are
entitled only to the liquidation proceeds in the event of a Liquidation (as defined in the DSA). Liquidation proceeds mean the net realisation
from the SISL&rsquo;s assets in the event of liquidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Although Clause 12.1 provides the right to the Investor
to modify the CCD conversion formula to provide the same economic benefit as contemplated in the DSA, we believe this is a protective
right that is available to the Investor and hence does not impact the classification of the instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol"><B>&#183;</B></FONT></TD><TD STYLE="text-align: justify"><B>Tell us in more detail how you concluded that the total expected cash flows attributable to the puttable
CCDs over their life are based substantially on the profit or loss of SISL over the life of the CCDs, as required by paragraph 16A(e)
of IAS 32. As part of your response, please address the &#8220;default interest&#8221; provision in Clause 15.4.5 of the Debenture Subscription
Agreement where the coupon is escalated to such a coupon which would entitle the investor to an increased IRR with respect to all of the
Investor CCDs from the date of allotment and subscription of the relevant Investor CCD till the receipt of all the moneys due and payable
to the Investor in accordance with the terms of the agreement. Additionally, please ensure your response addresses the STL Put Price,
which entitles the holder to certain IRR on the Investor Aggregated Accreted Amount per the Put Option Agreement.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Response:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to para 6.1 of Schedule IV of DSA, SISL must
allot and issue the requisite number of fully paid-up equity shares to the holder of CCD in accordance with the conversion ratio, which
is based on the future earnings before interest, tax and depreciation (&ldquo;EBITDA&rdquo;) of SISL. Further pursuant to Clause 17 of
the DSA, the therein provided exit rights are available to the Investor only through a Qualified IPO or Alternate Listing (each as defined
in the DSA), whereby the quantum of exit event proceeds to the puttable CCDs would be dependent on the profit and loss of SISL. Accordingly,
the Company believes that the total expected cash flows attributable to these CCDs over their life are substantially based on the profit
or loss of SISL over the life of the CCDs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon occurrence of any of the event mentioned in paragraph
6.1 of Schedule IV of the DSA, SISL must allot and issue the requisite number of fully paid-up equity shares to the holder of a CCD in
accordance with the conversion ratio provisions set out in paragraph 7 of Schedule IV of the DSA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">With regard to Clause 15.4.5, these are rights available
to the Investor due to occurrence of an Event of Default. These are protective rights available to the Investor among other protective
rights available like appointment of Nominee Director, prior approval for capital expenditure above a monetary limit, change in share
capital, etc. The Company believes that these protective rights should not be taken into consideration on initial classification of an
instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">IFRS Interpretation Committee (Committee) discussion
on &ldquo;&lsquo;IAS 32 Financial Instruments: Presentation &mdash; Classification of puttable and perpetual instruments&rdquo; in its
meeting held on March 5, 2009 opined that</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">1.</TD><TD STYLE="text-align: justify">The financial instrument is first classified as a liability or equity instrument in accordance with the
general requirements of IAS 32. That classification is not affected by the existence of puttable instruments.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">2.</TD><TD STYLE="text-align: justify">As a second step, if a financial instrument would meet the general definition of a liability because it
is puttable to the issuer, the entity considers the conditions in paragraphs 16A and 16B of IAS 32 to determine whether it should be classified
as equity.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">3.</TD><TD STYLE="text-align: justify">The existence of the put does not of itself imply that the puttable instruments are less subordinate than
the perpetual instruments.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has evaluated the Financial Instrument
in accordance with the general requirements of IAS 32 and classified the instrument as Equity as the conditions in paragraph 16 are met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The puttable CCDs have all the features indicated
in Para 16A &amp; 16B as given below, accordingly, the Company has classified the same as Equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">a)</TD><TD STYLE="text-align: justify">CCDs rank <I>pari passu </I>with the other CCDs forming part of same class of equity issued by SISL and
these CCDs shall rank senior only to all other classes of CCPS and Equity. Hence, it entitles the holder to a pro rata share of the entity&rsquo;s
net assets in the event of liquidation and is also subordinate to all other classes of instruments.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">b)</TD><TD STYLE="text-align: justify">The total expected cash flows attributable to these CCDs over their life are substantially based on the
profit or loss of SISL over the life of the CCDs as the quantum of exit event proceeds to the puttable CCDs would be dependent on the
profit and loss of SISL</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">c)</TD><TD STYLE="text-align: justify">Reference is also drawn to BC 18 of IAS 32 where the Board has concluded that contingent settlement provisions
that would apply only in the event of liquidation of an entity should not influence the classification of the instrument because to do
so would be inconsistent with a going concern assumption. A&nbsp;contingent settlement provision that provides for payment in cash or
another financial asset only on the liquidation of the entity is similar to an equity instrument that has priority in liquidation and
therefore should be ignored in classifying the instrument.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 18pt"><B>2.</B></TD><TD STYLE="text-align: justify"><B>We note your disclosure on page 155 of the issuances of the different Series of Compulsory Convertible
Debentures during the last few years. In this disclosure you indicate that you have valued the share price and fixed the conversion ratio
in the year(s) subsequent to issuance. Please revise your disclosure to discuss the conversion terms for each of the different Series
of Compulsory Convertible Debentures.</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Response:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We respectfully propose to expand the disclosure relating
to conversion terms in future filings as detailed below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The conversion ratio of each series of CCD is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Series 1 CCD conversion ratio was fixed at 0.8112 as pursuant to the
formula provided in the Series 1 CCD and Series 2 CCD DSA dated November 1, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Series 2 CCD conversation ratio was fixed at 0.8026 as pursuant to
the formula provided in the Series 1 CCD and Series 2 CCD DSA dated November 1, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Series 4 CCD conversion ratio was fixed at 0.5434 pursuant to the DSA
dated July 20, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Series 5 CCD conversion ratio will be fixed by
a formula based on (i) SISL&rsquo;s operating performance as represented by a multiple of SISL&rsquo;s EBITDA for the financial year 2024-25,
(ii) SISL&rsquo;s net debt and (iii) the total number of shares outstanding on the applicable closing date. The number of shares to be
issued for Series 5 CCD is determined by subtracting the number of shares issued for Series 4 from the total number of shares to be issued
as arrived above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If you have any questions regarding the above clarifications,
please feel free to contact the undersigned at +91 44 2254 0770, ext.2111.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; border-bottom: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">/s/ M P Vijay Kumar</FONT></TD>
    <TD STYLE="width: 50%; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Name: M P Vijay Kumar</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Title: Executive Director and Chief Financial Officer</FONT></TD>
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  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Sify Technologies Limited</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Chennai</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">India</FONT></TD>
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