Cantabil IPO Basis of Allotment

CANTABIL RETAIL INDIA LIMITED

Our Company was originally incorporated as Kapish Sales Private Limited on Febmary 09,1989 under the Companies Act, 1956 with the Registrar of Companies NCT Delhi & Haryana. The name of the Company was subsequently changed to Kapish Products Private Limited pursuant to a fresh Certificate of Incorporation dated May 15,1995. The name of our Company was subsequently changed to Cantabil Retail India Private Limited pursuant to a fresh Certificate of Incorporation dated March 05,2009. Subsequently our Company was converted into public limited company and received fresh Certificate of Incorporation dated August 26,2009 in the name of Cantabil Retail India Limited. The Corporate Identification Number of our Company is U74899DL1989PLC034995. For details of changes in Registered Office of our Company, please see the Section "History and Certain Corporate Matters" on page 69 of the Prospectus.
Registered Office: B-47,1st Floor, Lawrence Road Industrial Area, New Delhi-110035, Tel.: +91 11 2715 6381-82 .Telefax: +91 11 2715 6383, Promoters: Mr. Vijay Bansal and Mr. Deepak Bansal, Compliance Officer: Ms. Rekha Grover, Company Secretary & Head - Legal,
Website: www.cantabilinternational.com, Email:investors@cantabilinternational.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 7,777,778 EQUITY SHARES OF Rs. 10 EACH OF CANTABIL RETAIL INDIA LIMITED ("CANTABIL" OR "THE COMPANY" OR "THE ISSUER") FOR CASH AT A PRICE OF RS. 135 PER EQUITY SHARE ("ISSUE PRICE") INCLUDING SHARE PREMIUM OF RS. 125 PER EQUITY SHARE AGGREGATING TO RS. 1,050 MILLION (THE "ISSUE"). THE ISSUE CONSTITUTED 47.64% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.
BID OPENED ON SEPTEMBER 22,2010, CLOSED ON SEPTEMBER 27,2010
THE FACE VALUE OF THE EQUITY SHARES IS Rs. 10 EACH. THE ISSUE PRICE IS Rs. 135 PER EQUITY SHARE AND IT IS 13.5 TIMES OF THE FACE VALUE

The Issue has been made through the 100% Book Building Process wherein atleast 50% of the Issue is to be allocated to QIBs on a proportionate basis. 5% of the QIB Portion was made available for allocation on a proportionate basis to Mutual Funds only. The remaining QIB Portion has been available for allotment on a proportionate basis to Qualified Institutional Buyers including Mutual Funds, subject to valid bids being received from them at or above the Issue Price. Further, not less than 15% of the Issue was available to Non-Institutional Bidders and not less than 35% of the Issue was available to Retail Individual Bidders on a proportionate basis, subject to valid bids being received from them at or above the Issue Price. Under subscription, if any, in Retail and Non-Institutional Category was to be met with spill-over from other categories or a combination of categories. Such inter-se spill over, has been affected in accordance with applicable laws, regulations and guidelines. Any Bidder could participate in this Issue through the ASBA process by providing the details of their respective bank accounts in which the corresponding Bid amounts will be blocked by SCSBs. All Bidders, other than ASBA Bidders were required to submit their Bids through the members of Syndicate or their sub-syndicate members. ASBA Bidders are required to submit their Bids to the SCSBs.

The issue received 21,128 applications (after cheque return cases) for 15,432,500 equity shares resulting in 1.984 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Bidders categories are as under: (Before technical rejections and with drawls)

1138 applications for 1,416,350 Equity Shares were not found valid due to technical rejections, with drawls and non-bidding.

Final Demand: A summary of the final demand as per BSE and NSE as on the Bid/Issue Closing date at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ("BSE') on October 8,2010

A. Allocation to Retail Individual Investors (AfterTechnical Rejections) including ASBA Applications
The Basis of Allocation to the Retail Individual Investors, who have bid at cut off and the Issue Price of Rs. 135/- per Equity Share, was finalized in consultation with BSE. The category was oversubscribed 2.178 times. The total number of shares allotted in this category is 2,915,800 Equity Shares to 16,371 applicants including spill over from Non Institutional Category (193,578 Equity Shares). The category-wise details of the Basis of Allocation are as 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. 135/- per Equity Share, was finalized In consultation with BSE. The category was subscribed to the extent of 0.597 times and hence allotment was done on full and final basis to all valid applicants. Overall 95 applicants for 6,96,550 Equity Shares were found valid and they were considered for allotment on full and firm basis. The unsubscribed portion of Non Institutional Category was allocated to QIB Category (276,539 Equity Shares) and Retail Category (193,578 Equity Shares).

C. Allocation to QIBs Including ASBA Appllcations
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI regulations, Mutual Funds were initially allotted 5% of the quantum of shares available (208,271 Equity Shares to 4 successful applicants) including spill over from Non Institutional Category (13,827 Equity Shares) and other QIBs were allotted the remaining available shares (3,957,157 Equity Shares to 16 successful applicants) including spill over from Non Institutional Category (262,712 Equity Shares) on proportionate basis

The Board of Directors of the company at its Meeting held on October 9,2010 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 and allotment advice and notices will be dispatched to the address of the bidders as registered with the depositories on or prior to October 11, 2010. Further the Instructions to SCSBs have been dispatched on October 9,2010. 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 Equity Shares allocated to successful bidders are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned.

Commencement of Trading: The Company is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited within twelve working days from the date of closure of the offer.

INVESTORS PLEASE NOTE

This details of the allocation made would be hosted on the website of Registrars to the Issue, Beetal Financial & Computer Services (P) Limited at www.beetalfinancial.com. All future correspondence In this regard may kindly be addressed to the Registrar to the issue quoting full name of the First/ Sole bidder, 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:

Beetal Financial & Computer Services (P) Limited
SEBI Regn. No: INR 000000262
Beetal House, 3rd Floor, 99 Madangir,
Behind Local Shopping Centre,New Delhi -110 062
Tel.: +91 11 2996 1281, Fax: +91 11 2996 1284
Email: cantabil@beetalfinancial.com