Bajaj Corp IPO Basis of Allotment

Bajaj Corp Limited

Our Company was incorporated at Mumbai as a private limited company, with the Registrar of Companies, Maharashtra, under the Companies Act, 1956 as 'Bhaumik Ago Products Private Limited' pursuant to a Certificate of Incorporation dated April 25,2006. The name of our Company was changed to 'Bajaj Corp Private Limited' on September 11,2007. Thereafter, our Company became a public limited company and its name was changed to 'Bajaj Corp Limited' on October 16,2007.
Registered Office: 2nd Floor, Building No.2, Solitaire Corporate Park, 167, Guru Hargovind Marg, Chakala, Andheri (E), Mumbai - 400 093. Corporate Office: Old Station Road, Udaipur - 313 001, Rajasthan, India. Tel: +91-22-66919477 / 78, Fax: +91-22-66919476, Email: complianceofficer@bajajcorp.com, Website: www.bajajcorp.com

PUBLIC ISSUE OF UP TO 4,500,000 EQUITY SHARES OF Rs. 5I- EACH ('EQUITY SHARES') OF BAJAJ CORP LIMITED ('BCL' OR THE 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF Rs. 660/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 655/- PER EQUITY SHARE) AGGREGATING TO RS. 2,970 MILLION (THE 'ISSUE' OR THE 'IPO'). THE ISSUE WILL CONSTITUTE 15.3 % OF THE POST-ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY. ' THE FACE VALUE OF THE EQUITY SHARES IS RS. 5/- EACH AND THE ISSUE PRICE IS 132 TIMES THE ISSUE PRICE.

In terms of Rule 19(2)(b) of the Securities Contracts (Regulations) Rules, 1957 ('SCRR'), this being an issue for less than 25% of the post-Issue capital, the Issue is being made through the 100% Book Building Process wherein at least 60% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers ('QIB Portion') Bidders. Provided that our Company may allocate up to 30% of the QIB Portion to Anchor Investors on a discretionary basis out of which one-third shall be reserved for domestic Mutual Funds. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 10% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. If at least 60% of the Issue cannot be allotted to QIBs, then the entire application money shall be refunded forthwith. Potential investors may participate in this Issue through an Application Supported by Blocked Amount ('ASBA') process providing details about the bank account which will be blocked by the Self Certified Syndicate Banks ('SCSBs') for the same. All investors can participate through the ASBA process (except Anchor Investors).
The Issue received 84366 applications for 70371660 equity shares resulting in 15.64 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors and Anchor Investor categories are as under: (Before technical rejections)

Final Demand

A summary of the final demand as per the BSE and the NSE as on the Bid/ Issue Closing Date at different bids is as detailed hereunder:

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the National. Stock Exchange Limited ('NSE') on August 12, 2010.

Expected Listing Date - August 18, 2010.

A. Allocation to Retail Individual Investors (Including Applications Supported by Blocked Amount ('ASBA')) (After Technical Rejections)

The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off at the Issue Price of Rs.660/- per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 6.47 times. There were 25973 applications for 80122931 equity shares made under ASBA process. Of these 16783 applications for 31083150 equity shares were found valid and on proportionate basis the company have allotted 1557022 equity shares. The total number of shares allotted in Retail Individual Investor Category1350000 Equity Shares which were alloted to 68578  successful applicants. The category-wise details of the Basis of Allocation are as under:

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

The Basis of Allocation to the Non-Institutional Investors, who have bid at or above the Issue Price of Rs.660/- per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 49.29 times. Overall 172 applications for 22182060 equity shares were found valid and on proportionate basis, the company have allotted 450000 equity shares to 154 applicants. The category-wise details of the Basis of Allocation are as under:

C. Allocation to QIBs

The Basis of Allocation to the Qualified Institutional Bidders, who have bid above the Issue price of Rs.660/- per Equity Share was finalized on the price priority basis. Overall 87 applications for 35786010 Equity Shares were found valid and the quantum of shares allotted to this category is 1890000. The summarv of allotment is as under:

D. Anchor Investors

The Company allotted 810,000 equity shares to 12 Anchor Investors in consultation with the Lead Managers.
The IPO Committee of the Board of Directors of the Company at its Meeting held at Hyderabad on 13th August, 2010 has approved the basis of allocation of Equity Shares of the Issue and has accordingly allotted the Equity Shares to the Bidders.

The CAN-cum-Ref und Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on or prior to16.08.2010. Further, the instructions to Self Certified Syndicate Banks have been dispatched on or prior to16.08.2010. In case the same is not received within 10 days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Account details as registered, if any, with the depositories. The Equity 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 the 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.

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, serial number of the Bid-cum-Application Form, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

Unit: Bajaj Corp Limited
Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur, Hyderabad - 500081, Fax: 040-23420814, Email: einward.ris8Karvy.com

TOLL FREE - HELPLINE NUMBER 1-800-3454001

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES  ON LISTING OR THE BUSINESS PROSPECTS OF BAJAJ CORP LIMITED.
Bajaj Corp Limited is proposing, subject to market conditions and other considerations, an initial public offering of its equity shares and has filed the Prospectus with the Registrar of Companies, Maharashtra at Mumbai. The Prospectus is available on the website of Securities and Exchange Board of India (SEBI) at www.sebi.gov.in and the website of the
Book Running Lead Manager at www.kmcc.co.in. Any potential investor should note that an investment in equity shares involves a high degree of risk. For risk factors and other details potential investors should refer to the Prospectus available on the websites mentioned above. This advertisement is not an offer for sale or solicitation of an offer to buy securities in the United States, or any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. This advertisement may not be published or distributed in the United States of America and is not an offer or solicitation of an offer for sale of securities in the United States. The securities have riot been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration under such act. There will be no offering of securities in the United States. concept