Please ensure Javascript is enabled for purposes of website accessibility

Why Sify Technologies Stock Spiked Today

By Chris Neiger - Mar 5, 2021 at 3:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Blackstone may be considering a minority stake in the company.

What happened

Shares of Sify Technologies Limited (SIFY 0.48%) skyrocketed today after a Bloomberg article said that Blackstone Group (NYSE: BX), an investment company, is considering taking a minority stake in Sify. 

The tech stock popped by as much as 94.4% today and was up by 45.1% as of 3:37 p.m. EST.

So what 

Bloomberg reported that Blackstone is in "exclusive talks" to become a minority stakeholder in the communications infrastructure company and that Sify is looking for a valuation between $1 billion to $1.2 billion. 

An orange arrow on top of a blue bar chart.

Image source: Getty Images.

While investors were clearly excited about Blackstone's potential investment, nothing has been officially announced by either company.

Sify owns and operates data centers throughout India and has the country's largest multiprotocol label switching network. Blackstone has made a series of investments in India recently and the potential investment in Sify would expand the company's footprint in the country. 

Now what 

Sify's massive share price jump today comes as the company's stock has experienced other share price spikes over the past three months. The company's stock price is up 208% since January and up 261% over the past 12 months. Considering that it jumped so much on today's news, it's likely that Sify's stock could remain volatile before a deal (if any) with Blackstone is announced.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Sify Technologies Limited Stock Quote
Sify Technologies Limited
SIFY
$2.09 (0.48%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.