Aishwarya Telecom IPO Basis of Allotment

AISHWARYA TELECOM  LIMITED

(The Company was incorporated as Aishwarya Telecom Private Limited on June 2,1995 with the Registrar of Companies, Andhra Pradesh, Hyderabad and took over the business of the partnership firm named 'Advanced Electronics & Communications System'. Subsequently, it was converted into a Public Limited Company on July 12, 2005 in terms of Section 31 (1 )/44 of the Companies Act, 1956 and the name of the Company was changed to Aishwarya Telecom Limited and a fresh Certificate of Incorporation obtained from the Registrar of Companies, Andhra Pradesh, Hyderabad). (For details of changes in Registered Office of the Company, please refer to page no.7 of the Prospectus.)

  Registered Office: 3-C Samrat Commercial Complex, Opp. A G Office, Saifabad, Khairatabad, Hyderabad, Andhra Pradesh, India, Pin - 500 004, Telephone: +91 40 2323 6019,2323 5439; Fax: +91 40 2329 6282, E-mail:ipo@aishwaryatelecom.com; Website: www.aishwaryatelecom.com
Contact Person/Compliance Officer: Mr C N Bhavani Prasad, Company Secretary

BASIS OF ALLOTMENT

INITIAL PUBLIC ISSUE OF 40,00,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 35/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 25/- PER EQUITY SHARE) AGGREGATING RS. 1400 LAKHS (HEREINAFTER REFERRED TO AS 'THE ISSUE'). THE ISSUE COMPRISES A RESERVATION FOR ELIGIBLE EMPLOYEES OF UPTO 1,00,000 EQUITY SHARES OF RS. 10 EACH ('THE EMPLOYEE RESERVATION PORTION') AGGREGATING RS. 35 LAKHS AND THE NET ISSUE TO THE PUBLIC OF 39,00,000 EQUITY SHARES OF RS. 10 EACH ('THE NET ISSUE') AGGREGATING RS. 1365 LAKHS

                                ISSUE PRICE IS RS. 35/- PER EQUITY SHARE OF FACE VALUE OF RS. 10/- EACH.
                                                        THE ISSUE PRICE IS 3.5 TIMES OF THE FACE VALUE

The Issue is being made through the 100% Book Building Process wherein up to 50% of the Issue size shall be allocated on a proportionate basis to Qualified Institutional Buyers(QIBs), out of which 5% will be available for allocation on a proportionate basis to Mutual Funds. The remaining QIB portion shall be available for allotment on a proportionate basis to QIB bidders including Mutual Funds, subject to valid bids being received at or above the Issue Price. Further, not less than 15% of the Issue size would be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue size would be available for allocation on a proportionate basis to Retail Individual Bidders,subject to valid bids being received at or above the Issue Price.

The issue opened for subscription on April 15,2008 and closed on April 17,2008. The Issue received 28688 applications for 76362200 Equity Shares resulting in 19.09 times subscription.

As advised by SEBI, the Company has published a public notice on 19.04.2008 in newspapers and the Individual intimation letters regarding the public notice have been sent to all the applicants (Including QIBs) on 23.04.2008 Under Certificate of Posting (UCP).The Company had given an option to all applicants (including QIBs) to withdraw their bids application made in the IPO within a period often (10) days from the date of Public Notice. The last date for receipt of withdrawal was up to 5:30 p.m. on April 28,2008.In terms of the Public Notice the Registrar to the Issue has taken into account all the withdrawal requests received till 5.30 p.m. on 28th April, 2008 through fax, post, courier and hand delivery. In view of the above, the Registrar has received requests for withdrawal of 21 applications for 512200 shares. After considering the above withdrawals, the issueremained oversubscribed 18.96 times.

The Issue received 28688 applications for 76362200 equity shares resulting in 19.09 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investor and Employee categories are as under: (After withdrawal and 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 the Bombay Stock Exchange Limited ('BSE') on April 30,2008.
A) Allocation to Employees (After Technical Rejections) '
The Basis of Allocation to the Employees in the Firm Allotment category, who bid at cut-off price or at the Issue Price at Rs. 35 per Equity Share, was finalized in consultation with the BSE. The Company received 7 valid applications for 91800 Equity Shares as against a Firm allotment portion of 1,00,000 Equity Shares resulting In 0.918 times ofsubscription. The unsatisfied demand of Employees Reservation portion, i.e. 8,200 was proportionately distributed amongst the balance categories. The category-wise details of the Basis of Allotment of Employees are as under:

B) 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. 35 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 31.707 times. The total number of shares allotted in this category is 1369200 Equity Shares to 6846 successful applicants. The category-wise details of the Basis of Allocation (Sample) are as under:

C) Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to this category, who has bid at the Issue Price of Rs. 35 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 26.736 times. The total number of shares allotted in this category is 587471 Equity Shares to 138 successful applicants. The category-wise details of the Basis of Allocation (Sample) are as under:

D) Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available i.e. 97,705 equity shares and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares i.e., 18,56,395 equity shares on proportionate basis.

The Board of Directors of the company at it's Meeting held at Hyderabad on May 2nd, 2008 has approved the basis of allocation of shares and has allotted the shares to various successful applicants.

The CAN-cum-Refund Orders and ECS/RTGS/NEFT/Direct Credit Intimation has been dispatched to the same address of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact the Registrar to the Issue, at the address given below. The Company has filed the listing application with the Bombay Stock Exchange Limited on May 5th, 2008. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to the successful applicants have 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 the Bombay Stock Exchange 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, Bigshare Services Private Limited at www.bigshareonline.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-applicatton 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:

BIGSHARE SERVICES PRIVATE LTD.
Unit: Aishwayra Telcome Limited, E-2, Ansa Industrial Estate, Sakivihar Road, Saki Naka, Andheri (East), Mumbai 400 072 Tel: +91-22-40430200, Fax: +91-22-28475207, E-mail: ipo@bigshareonline.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF AISHWARYA TELECOM LIMITED.