C Mahendra IPO Basis of Allotment

C. MAHENDRA EXPORTS LTD.

(Originally formed as a partnership firm under the name and style of 'M/s. C. Mahendra Exports'. Subsequently converted into a private limited company with the name 'C. Mahendra Exports Private Limited' on January 4,2007 under Part IX of the Companies Act, 1956. Our Company became a public limited company and our name was changed to 'C. Mahendra Exports Limited' vide a fresh certificate of incorporation dated March 14,2007. Our Company has been registered with the Registrar of Companies, Maharashtra at Mumbai and has been allocated CIN U27205MH2007PLC166717). (For details of changes in the name of our Company, please refer to 'History and Other Corporate Matters' on page 126 of the Prospectus)

Registered Office: 1204 Panchratna, 12th Floor, Opera House, Mumbai 400 004. Tel: + 91 22 23631487;
Fax: +91 22 2363 4251.
Corporate Office: A-5/6, Nagindas Mansion, 3rd Floor, 57-61, J.S.S. Road, Opera House, Mumbai 400 004.
Contact Person: Mr. Mandar M. Ranade, Company Secretary and Compliance Officer; Tel: + 91 22 2382 6998;
Fax: +91 22 2380 2847;
Website: www.cmahendra.com; Email: investorgrievance@cmahendra.com

BASIS OF ALLOTMENT

PROMOTERS OF OUR COMPANY Mr. Mahendra C. Shah, Mr. Champaklal K. Mehta, Mr. Pravin C. Shah, Mr. Pravin K. Mehta and Mr. Sandeep M. Shah

PUBLIC ISSUE OF 15,000,000 EQUITY SHARES OF RS.10 EACH FOR CASH AT A PRICE OF RS.110 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS.100 PER EQUITY SHARE) AGGREGATING RS.1,650 MILLION (REFERRED TO AS THE 'ISSUE') BY C. MAHENDRA EXPORTS LIMITED (THE 'COMPANY' OR THE 'ISSUER'). THE ISSUE WILL CONSTITUTE 25.00 % OF THE FULLY DILUTED POST ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY

THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS.10 AND IT IS 11 TIMES THE FACE VALUE.

The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading is expected to commence on January 19,2011.

In case of revision in the Price Band, the Bidding / Issue Period shall be extended for three additional working days after such revision, subject to the Bidding / Issue Period not exceeding 10 working days. Any revision in the Price Band and the revised Bidding / Issue Period, if applicable, shall be widely disseminated by notification to the Bombay Stock Exchange Limited ('BSE'), the National Stock Exchange of India Limited ('NSE') and Self Certified Syndicate Banks ('SCSBs'), by issuing a press release, and also by indicating the change on the websites of the Book Running Lead Managers and the terminals of the members of the Syndicate. However there was no revision.

The Issue is being made under Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and through the Book Building Process wherein at least 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs'), of which 5% shall be available for Allocation on a proportionate basis to Mutual Funds only. Our Company may allocate up to 30% of the QIB Portion to the Anchor Investors on a discretionary basis*. The remaining QIB portion ('Net QIB') shall be available for allocation on a proportionate basis to QIBs including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. If at least 50% of the Issue cannot be allotted to QIBs, then the entire application money will be refunded forthwith. Further, not less than 35% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders and not less than 15% of the 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. These requirements have been fulfilled.

* The Company has not considered the option of allocation to / participation by Anchor Investors.

Bidders had the option to participate in the Issue through an Application Supported by Blocked Amount ('ASBA') by providing details of the bank account in which the Bid Amount will be blocked by the SCSBs. For details refer chapter titled 'Issue Procedure' beginning on page 221 of the Prospectus.

The Issue received 25,623 applications for 39,828,660 equity shares resulting in 2.6552 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investors are as under: (Before technical rejections)

Final Demand

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 January 13,2011.

A. Allocation to Retail Individual Investors (After Technical Rejections) (Including ASBA Applications)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 110 per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 4.5548 times. The total number of shares allotted in Retail Individual Investor category is 5,250,000 Equity Shares to 20,836 successful applicants. The category-wise details of the Basis of Allotment are as (Sample) under:

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

The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs. 110 per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 3.5949 times The total number of equity shares allotted in this category is 2,250,000 equity shares to 57 successful applicants. The category-wise details of the Basis of Allotment are as (Sample) under:

C. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI regulations, No Mutual Funds applications were received in the issue, so the entire portion of QIB Reservation of 7,500,000 Equity Shares was allotted to other QIBs on proportionate basis.

The IPO Committee of the Company at its Meeting held on January 14,2011 has taken on record the basis of allocation of shares approved by the Designated Stock Exchange viz., Bombay Stock Exchange Limited, Mumbai, of the Issue and allotted shares and has authorized the Corporate Action for the transfer of the shares to various successful applicants.

The CAN-cum-Refund Orders along with allotment advice and/or notices have been dispatched to the address of the bidders as registered with the depositories on January 15,2011. In case the same is not received, bidders may contact at the address given below. The instructions to Self Certified Syndicate Banks ('SCSBs') for unblocking and transfer of funds have been sent on January 14,2011. The equity shares allocated to successful applicants are credited to their beneficiary accounts on January 14,2011, subject to validation of the account details with the depositories concerned. The Company has filed its Listing application with Bombay Stock Exchange Limited (the 'Designated Stock Exchange') on January 14,2011. The Equity Shares are to be admitted for trading on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited on January 19, 2011 subject to receipt of necessary approvals.

This details of the allocation made would be hosted on the website of Registrars to the Issue, i.e. Link Intime India Private Limited at Website: www.linkintime.co.in

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 equity 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:

Link Intime India Private Limited
C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai 400 078.
Tel.: +91 2225960320, Fax: +91 2225960329, Email ID: cmel.ipo@linkintime.co.in