BGR Energy IPO Basis of Allotment

BGR ENERGY SYSTEMS LIMITED

(We were incorporated as GEA Energie Systems India Private Limited on February 18, 1985. Our name was changed to GEA Energy System (India) Private Limited by a resolution of our shareholders on October 17, 1986, and a fresh certificate of incorporation consequent on change of name was issued to us on April 3, 1987 by the Registrar of Companies, Andhra Pradesh at Hyderabad (the "RoC"). Our status was subsequently changed to a public limited company by a special resolution of our shareholders passed at the annual general meeting held on December 10, 1993. The fresh certificate of incorporation consequent on conversion was issued to our B Company on March 3, 1994. Our name was changed to BGR Energy Systems Limited by a resolution of our shareholders on June 25, 2007. The fresh certificate of incorporation consequent to the change in name was issued to our Company on June 28, 2007 by the RoC).
Registered Office: A-5, Pannamgadu Industrial Estate, Ramapuram Post, Sullurpet Village, Nellore District, Andhra Pradesh 524 401, India
Tel: (91 44) 2794 8249; Fax: (91 44) 2794 8359
Corporate Office: 443, Anna Salai, Teynampet, Chennai 600 018, Tamilh Nadu, India.
Tel: (91 44) 2432 6171; Fax: (91 44) 2436 0576
Email: investors@bgrenergy.com; Website: www.bgrcorp.com;
Company Secretary and Compliance Officer: Mr. R. Ramessh Kumar

PUBLIC ISSUE OF 9,136,000 EQUITY SHARES OF Rs. 10 EACH OF BGR ENERGY SYSTEMS LIMITED ("BGR ENERGY" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS. 480 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 470 PER EQUITY SHARE), CONSISTING OF A FRESH ISSUE OF 4,320,000 EQUITY SHARES AND AN OFFER FOR SALE OF 4,816,000 EQUITY SHARES BY MR. B.G. RAGHUPATHY AND MS. SASIKALA RAGHUPATHY (THE "SELLING SHAREHOLDERS"), AGGREGATING Rs. 4,385.28 MILLION (THE "ISSUE"). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 8,636,000 EQUITY SHARES OF RS. 10 EACH (THE "NET ISSUE") AND A RESERVATION OF UP TO 500,000 EQUITY SHARES OF RS. 10 EACH FOR ELIGIBLE EMPLOYEES (AS DEFINED HEREIN) (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE CONSTITUTES 12.69% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY. THE NET ISSUE CONSTITUTES 11.99% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.

In terms of Rule 19 (2) (b) of the SCRR, as being an issue for less than 25% of the Post-Issue equity share capital, the Issue is being made through the 100% Book Building Process wherein at least 60% of the Net Issue shall be allocated on a proportionate basis to QIB Bidders out of which 5% of the QIB Portion shall be available for allocation on a proportionate basis to the 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. If at least 60% of the Net Issue cannot be allotted to QIBs, then the entire application money will be refunded forthwith. Further, not less than 30% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders and not less than 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders, subject to valid Bids being received at or above the Issue Price. Further upto 500,000 Equity Shares shall be available for allocation on a proportionate basis to the Eligible Employees, subject to valid bids being received at or above Issue Price.

The Issue received 820,758 applications for 1,051,839,606 equity shares resulting in 115.1313 times subscription. The details ot the applications received in the Issue from Qualified Institutional Bidders, Non-Institutional and Retail Investor categories are as under: (Before technical rejections)

Final Demand
A summary of the final demand at different bid prices as per the electronic book is as under:

The Basis of Allocation for all the categories namely Retail Individual Investors, Non Institutional Investors and Qualified Institutional Buyers was finalised in consultation with National Stock Exchange of India Limited (Designated Stock Exchange) on 24 December 2007.
The IPO Committee of the Company at it's meeting held at the Registered Office in Andhra Pradesh on December 26, 2007 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

A. Allotment to Retail Investors (After Technical Rejections)
All the bidders in the Retail Investors, who have bid at cut-off or at the Issue Price of Rs. 480/- per Equity Share, have been considered while preparing the basis of allocation. The category was over subscribed 45.377065 times. The total number of shares allotted in this category is 2590812 Equity Shares. The category-wise details of the Basis of Allocation are as under:

B. Allotment to Non Institutional Investors (After Technical Rejections)
All the bidders in the Non-Institutional Investors, who have bid at the Issue Price of Rs. 480/- per Equity Share, have been considered while preparing the basis of allocation. The category was over subscribed 147.912626 times. The total number of shares allocated in this category is 863588 Equity Shares. The category-wise details of the Basis of Allocation are as under (Sample):

C. Allotment to Employees (After Technical Rejections)
All the bidders in the Employee Category, who have bid at the Issue Price of Rs. 480/- per Equity Share, have been considered while preparing the basis of allocation. The category was over subscribed 1.446676 times. The total number of shares allocated in this category is 500000 Equity Shares. The category-wise details of the Basis of Allocation are as under (Sample):

D. Allocation to QIBs
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 259,080 and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares 4,922,520 on proportionate basis.

Refunds have been made through ECS, Direct credit, RTGS and NEFT, into the Bank Accounts of the applicants, as registered with the depositories, for applicants residing at any of the 15 centres specified by SEBI. For other applicants Refund Orders have been despatched to their address as registered with the depositories. In case the same is not received within ten days, applicants may contact at the address given below. ECS Intimation Note and Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants have been credited to their beneficiary accounts.
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 allotment.

The 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
C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (W), Mumbai - 400 078
Tel: +91 - 22 - 2596 0320, Fax: +91 - 22 - 2596 0329
Email: bgrenergy-ipo@intimespectrum.com, Website: www.intimespectrum.com
Contact person: Mr. Sachin Achar