BEML IPO Basis of Allotment

BHARAT EARTH MOVERS LIMITED

(Incorporated as a private limited company as 'Bnarat Earth Movers Limited' vide certificate of incorporation an May 11,1964 under the Companies Act, 1956 and was subsequently converted to a public limited company on February 21,1992 and has been allocated CIN L35202KA 1964PLC001530)
Registered Office: BEML Soudha, No. 23/1, 4th Main Road, Sampangiramanager, Bangalore - 560 027, (For details of changes in our Registered Office, please refer section titled 'History and Other Corporate Matters'
beginning on page 90 of the Prospectus)
Tel: +81-80-2296 3142; Fax: +91-80-2296 3278;
E-mail: office@cs.beml.co.in; website: www.bemlindia.com
Contact Person: Mr. K.C. Medapa, Company Secretary and Compliance Officer

BASIS OF ALLOCATION

PUBLIC ISSUE OF 49,00,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 1075/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 1065/- PER EQUITY SHARE) AGGREGATING TO RS 52675.00 LACS (HEREINAFTER REFERRED TO AS 'THE ISSUE'). THE ISSUE COMPRISED A RESERVATION OF 4,90,000 EQUTY SHARES FOR SUBSCRIPTION BY EMPLOYEES AND THE NET ISSUE TO THE PUBLIC OF 44,10,000 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF RS.1075/- PER EQUITY SHARE. THE ISSUE CONSTITUTES 11.77% OF THE FULLY DILUTED POST ISSUE PAID-UP EQUITY CAPITAL OF BHARAT EARTH MOVERS LIMITED ('COMPANY' OR 'ISSUER').
THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 1075/- AND IT IS 107.5 TIMES THE FACE VALUE.
The Issue was made through the 100% Book Building Process wherein up to 50% of the Net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (wherein 5% of the QIB portion was to be allocated on a proportionate basis to Mutual Funds only). Further, not less than 15% of the Net Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Further, 4,90,000 Equity Shares were made available for allocation on a proportionate basis to Eligible Employees, subject to valid Bids beina received at or above the Issue Price.
The Issue received 1,09,586 applications for 14,79,76,333 Equity Shares resulting in 30.19 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Investors, Retail individual Investors and Employee categories are as under: (Before technical rejections)

Final Demand
A sample of the final demand at different bid Drices is as under:

The Basis ot Allocation was finalized in consultation with the Bombay Stock Exchange Limited ('BSE') on 14th July, 2007.

A. Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Eligible Employees, who have bid at cut-off price or at and above the Issue Prise of Rs.1075 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 0.0097 times. Hence FULL and FIRM allotments have been made against all valid applications. The total number of Shares allotted in this category is 4780 Equity Shares to 149 successful applicants. The unsubscribed portion of 485220 Equity Shares has been added to Retail, Non-Institutional and Qualified Institutional Buyers categories in the ratio of 35:15:50.

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off price or at and above the Issue Price of Rs.1075 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 2.75 times. The total number of shares allotted in this category is 1713327 Equity Shares (including 169827 Equity Shares spilled over from Employees' category) to 93188 successful applicants. The cateqory-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 the Non-Institutional Investors, who haye bid at and above the Issue Price of Rs.1075 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 5.47 times. The total number of shares allotted in this category is 734283 Equity Shares (including 72783 Equity Shares spilled over from Employees' category) to 375 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 (1,22,381 including 12131 Equity Shares spilled over from Employees' category) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (23,25,229 including 230479 Equity Snares spilled over from Employees' cateqory) on proportionate basis.

The Committee of Directors of the Company at its Meeting held at Hyderabad on 16th July, 2007 has approved the basis of allocation of Equity Shares and has allotted the Equity Shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices (where applicable) have 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 the Bombay Stock Exchange Limited, the National Stock Exchange of India Limited and the Bangalore Stock Exchange 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 the Registrar to the Issue, Karvy Computershare Private Limited at www.karvy.bom or http://kcpl.karvy.com
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 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:

Karvy Computershare Private Limited
Unit: BEML, Plot No. 17 to 24, Vitthal Rao Nagar, Hitech City Road, Madhapur Hyderabad - 500081,
Fax: 040-23420814, Email: einward.ris@karw.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 BHARAT EARTH MOVERS LIMITED.