Birla Cotsyn IPO Basis of Allotment

THE YASH BIRLA GROUP
BIRLA COTSYN (INDIA) LTD.

Company was incorporated on 24th Sept, 1941 under the name and style of Jamod Ginning Company Pvt. Ltd. Renamed on 8th Oct, 1998 as Birla Agro Pvt. Ltd.and subsequently changed to Birla Cotsyn India Pvt. Ltd on 9th Dec, 2005. The company was converted in to public limited company and the name was changed to Birla Cotsyn India Ltd on 30th May 2006.

Registered and Corporate Office: 1st Floor, Dalamal House, Nariman Point, Mumbai - 21 Tel.: +91-22-66168400 Fax: +91-22-22047835, Email: ipo@birlacotsyn.com, Website: www.birlacotsyn.com.
Contact Person: Mr. Tushar Dey, Company Secretary and Compliance Officer.
Email: complianceofficer@birlacotsyn.com

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 10,29,82,729 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF Rs. 14/- PER EQUITY SHARE AGGREGATING TO Rs. 14,418 LAKHS (HEREINAFTER REFERRED TO AS THE 'ISSUE'). THE ISSUE COMPRISES PROMOTER'S CONTRIBUTION 2,61,75,587 EQUITY SHARES OF Rs. 10/-EACH FOR CASH AT A PRICE OF Rs. 14/- PER EQUITY SHARE AGGREGATING TO Rs. 3,665 LAKHS (HEREINAFTER REFERRED TO AS PROMOTER'S CONTRIBUTION) AND EMPLOYEE RESERVATION OF 51,78,571 EQUITY SHARES OF Rs. 10/- EACH FOR CASH ON COMPETITIVE BASIS AT A PRICE OF Rs. 14/-PER EQUITY SHARE AGGREGATING Rs. 725 LAKHS (HEREINAFTER REFERRED TO AS THE 'EMPLOYEE RESERVATION PORTION'). THE ISSUE LESS THE PROMOTER'S CONTRIBUTION AND EMPLOYEE RESERVATION PORTION IS REFERRED TO AS NET ISSUE TO PUBLIC (HEREINAFTER REFERRED TO AS 'THE NET ISSUE' OR' NET ISSUE TO THE PUBLIC'). THE NET ISSUE WOULD CONSTITUTE 69.55% THE FULLY DILUTED 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. 14 AND IT IS 1.4 TIMES THE FACE VALUE.

The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India Limited (NSE) and trading is expected to commence on or about July 30,2008 subject to approvals by the authorities and exchanges concerned.
The Issue was made through the 100% Book Building Process wherein upto 50% of the net 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 35% 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. Further upto 51,78,571 equity shares shall be available for allocation on a proportionate basis to eligible employees, subject to valid bids being received at or above the issue price.
The Issue was opened for subscription on June 30,2008 and closed on July 09,2008. The Issue received 15610 applications for 80201750 equity shares resulting in 1.1002 times subscription. The details of the applications received in the Issue from EMPLOYEES, QIB, NON INSTITUTIONAL AND RETAIL INDIVIDUAL INVESTOR categories are as under: (Before technical rejections)
Collection Summary

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'), the designated stock exchange on 21st  July, 2008

A. Allocation of EMPLOYEES (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at cut-off or at the Issue Price of Rs. 14/- per Equity Share was finalized in consultation with BSE. The category was subscribed 0.03 times. The total number of Equity Shares allotted in this category is 151550 Equity Shares to 18 successful applicants. The Unsubscribed portion (5027021 shares) is spilled over to QIB (50%), Retail investors (35%) and NIB.(15%). The category wise details of the Basis of Allocation (sample) are as under:

B. Allocation of QIB
The Basis of Allocation to the QIB, who have bid the Issue Price of Rs. 14/- per Equity Share was finalized in consultation with BSE. The category was subscribed 0.02 times. The total number of Equity Shares allotted in this category is 555800 Equity Shares to 1 successful applicant. The Unsubscribed portions 2513511 shares of QIB portion (35814286 shares) and Employees (2513511) is spilled over to Retail Category (70%) and NIB (30%). The category wise details of the Basis of Allocation (sample) are as under:

C. Allocation to Retail Individual Investors (AfterTechnical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid the Issue Price of Rs. 14/- per Equity Share was finalized in consultation with BSE. The category was subscribed 0.92 times. The total number of Equity Shares allotted in this category is 23170700 Equity Shares to 15068 successful applicants. The Unsubscribed portion is spilled over to NIB category. The category wise details of the Basis of Allocation (sample) are as under:

NIB: The Basis of Allocation to the NIB, who have bid the Issue Price of Rs. 14/- per Equity Share was finalized in consultation with BSE. The category was subscribed 5.08 times. The total number of Equity Shares allotted in this category is 52929093 Equity Shares to 66 successful applicants. The Unsubscribed portion of Employees, QIB and Retail investor categories is spilled over to NIB category. The category wise details of the Basis of Allocation (sample) are as under:

The IPO Committee of the company at it's meeting held at Mumbai on July 22,2008 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants. The CAN-cum-Refund Orders/allotment advice 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 listing application have been filed with the BSE on July 23,2008 and 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, Adroit Corporate Services Pvt. Ltd. at www.adroitcorporate.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:

Adroit Corporate Services Pvt. Ltd.
^{19/20 Jaferbhoy Industrial Estate, Makwana Road, Marol Naka, Andheri (E). Mumbai - 400 059.
Tel: 91-22-2859 6060/2859 4060, Fax: 91-22-2850 3748 Email: Birla_ipo@adroitcorporate.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 Birla Cotsyn (India) Ltd.