Accel Frontline IPO Basis of Allotment

ACCEL FRONTLINE LIMITED

(Originally incorporated as Accel Computers Limited on June 8,1995 under the Companies Act, 1956 as a public limited company. The name was changed to Accel ICIM Systems & Services Limited on October 21, 1999.

Registered and Corporate Office: III Floor, New No. 75 (Old No. 124), Nelson Manickam Road, Aminjikarai,
Chennai 600 029, Tamil Nadu. Tel: +91 44  4225 2000; Fax: +91 442374 1271; Compliance Officer/Contact Person:
Mr. R. Neelakantan; Website: www.accelfrontline.in; Email: neel@accelfrontline.in

BASIS OF ALLOCATION

PUBLIC ISSUE OF 56,35,950 EQUITY SHARES OF RS. 10/- EACH AT A PREMIUM OF RS. 65/- PER EQUITY SHARE AND AT A PRICE OF RS. 75/- PER EQUITY SHARE FOR CASH AGGREGATING
RS. 4226.9625 LAKH (HEREINAFTER REFERRED TO AS 'THIS ISSUE'). THIS ISSUE COMPRISES OF A FRESH ISSUE OF 51,75,667 EQUITY SHARES BY ACCEL FRONTLINE LIMITED ('COMPANY' OR 'ISSUER') AND AN OFFER FOR SALE OF 4,60,283 EQUITY SHARES BY INTEL PACIFIC INC., ('INTEL' OR THE 'SELLING SHAREHOLDER'). THE FRESH ISSUE AND THE OFFER FOR SALE ARE JOINTLY REFERRED TO HEREIN AS THE 'ISSUE'. THE NET ISSUE WOULD CONSTITUTE 25.04% OF THE POST ISSUE PAID-UP CAPITAL OF OUR COMPANY

THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 75/-AND IT IS 7.5 TIMES THE FACE VALUE.

The Issue made through the 100% Book Building Process wherein up to 35% of the Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (including 5% of the QIB portion that was to specifically be allotted to mutual funds), further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 50% of the Issue shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

The issue received 21,594 applications for 1,23,56,960 equity shares resulting in 2.19 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Employees of the Company and Retail Individual Investor categories areas under: (Before technical rejections)

Final Demand

A sample of the final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with National Stock Exchange Limited ('NSE') on 17th October, 2006.

A. Allocation to Retail Individual Investors (After Technical Rejections)

The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 75/- per Equity Share, was finalized in consultation with NSE. The category was oversubscribed 2.78418 times. The total number of shares allotted in this category is 2817977 Equity Shares The category-wise details of the Basis of Allocation are as under

B. Allocation to Non Institutional  Investors (After Technical Rejections)

The category was subscribed 1.08727 times. All the investors who have applied for 1120 shares and above have been allotted equity shares on Firm Bais. A sample of the category wise details of the Basis of Allocation as under:

C. Allocation to OIBs

Allocation to QIBs has been done on a proportionate basis in consultation with NSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (98,629) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (18,73,953) onproportinate basis.

Pursuant to Clause 6.8.3.2 (g) of the SEBI (Disclosure and Investor Protection Guidelines), 2000 and Item no. 20 of the Notes to the Capital Structure (page no. 23) of the Prospectus dated October 10, 2006 the Company has rounded-off fractional Equity Shares to the nearest multiple of one (1) Equity Share.

The Board of Directors of the company at It's Meeting held at the Corporate Office of the Company at III Floor, New No.75 (Old No. 124), Nelson Manickam Road, Aminjlkaral, Channel -600 029, Tamil Nadu on 17th October, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

The Refund Orders/ECS and allotment advice and notice has been dispatched to the address of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The company is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

This details of the allocation made would be hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com All future correspondence In this regard may kindly be addressed to the Registrars to the Issue quoting full name of the First/ Sole applicant, Serial number of the bid-cum application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:

Intime Spectrum Registry Limited
Unit: Accel Frontline Limited,
C-13, Pannalal Silk Mills, Compound, L.B.S. Marg,
Bhandup (W), Mumbai -400078, Fax: +91 22 2596 0329
Email: afslipo@intimespectrum.com