Commercial Engineers IPO Basis of Allotment

COMMERCIAL ENGINEERS & BODY BUILDERS CO LIMITED

(The Company was incorporated in Uttar Pradesh, India as a private limited company under the Companies Act, 1956 as 'Commercial Engineers & Body Builders Co Private Limited' pursuant to a Certificate of Incorporation No. 4837 of 1979 dated September 28,1979. The Company became a public limited company and its name was changed to 'Commercial Engineers & Body Builders Co Limited' on March 25,2010. There has been no change in the registered office of our Company since incorporation.)

Registered Office: 84/105-A, G.T. Road, Kanpur Mahanagar, Kanpur-208 003, Uttar Pradesh, India;
Telephone: +91 512 2521 571; Facsimile: +91 512 2522 743;
Corporate Office: 124, Napier Town, Jabalpur-482 001, Madhya Pradesh, India; Telephone: +91 7614085 924; Facsimile:+91 761 4085 924; Contact Person: Mr. Anurag Misra, Company Secretary and Compliance Officer;
Tel: +91 761 4085 924; E-mail: cs@cebbco.com; Website: www.cebbco.com

THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH.
THE ISSUE PRICE: RS. 127 PER EQUITY SHARE.
THE ISSUE PRICE IS 12.7 TIMES OF THE FACE VALUE

Under the Securities Contract Regulation Rules, 1957 as amended on June 4,2010 and August 9,2010, we are eligible to make this Issue for less than 25% of the post-Issue capital. The Issue is being made under Rule 19(2) (b) of the SCRR (as defined in the section 'Definitions and Abbreviations') through a 100% Book Building Process, wherein atleast 60% of the Issue shall be allotted 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 and the remaining shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. In addition, in accordance with Rule 19(2) (b) of the SCRR, a minimum of two million securities are being offered to the public and the size of the Issue shall aggregate atleast Rs. 1,000 million. If atleast 60% of the Issue cannot be allotted to QIBs, then the entire application money will be refunded/released forthwith. Further, not less than 10% of the Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.

The QIB Portion includes the Anchor Investor Portion (as defined in the section 'Definitions and Abbreviations') and the Company may consider participation by Anchor Investors in the Issue for up to 30% of the QIB Portion in accordance with the ICDR Regulations (as defined in the section 'Definitions and Abbreviations'). Any Bidder may 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 Self Certified Syndicate Banks ('SCSBs').

The Issue received 3,691 applications for 28,556,770 equity shares resulting in 2.10 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders, Retail Individual Bidders and Anchor Investor categories are as under:
(Before technical srejections)

Final Demand
A summary of the final demand as per the BSE and NSE as on the Bid/ Issue Closing Date at different bids is as detailed hereunder:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ('BSE') on October 13,2010.

A. Allotment to Retail Individual Bidders (Including Applications Supported by Blocked Amount ('ASBA')) (After Technical Rejections)
The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs.127/- per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 0.29 times and hence allotment was done on full and firm basis to all valid applicants/There were 1,422 applications for 327,635 equity shares made under ASBA process, of which 1,378 applications for 320,925 equity shares were found valid and they were considered for allotment on full and firm basis. The total number of shares allotted in Retail Individual Bidder category is 1,207,965 Equity Shares which were allotted to 3,554 successful applicants.

B. Allotment to Non Institutional Bidders (After Technical Rejections)
The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Issue Price of Rs. 127/- per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 0.20 times and hence allotment was done on full and firm basis to all valid applicants. There were 2 applications for 20,350 equity shares made under ASBA process, of which 2 applications for 20,350 equity shares were found valid and they were considered for allotment on full and firm basis. The total number of shares allotted in Non Institutional Bidders category is 272,030 Equity Shares which were allotted to 12 successful applicants.

C. Allotment to QIBs
The Basis of Allotment to the Qualified Institutional Bidders, who have bid at the Issue price of Rs.127/- per Equity Share was finalized on the price priority basis. Overall 14 applications for 21,386,970 Equity Shares were found valid and the quantum of shares allotted to this category is 9,652,187. The summary of allotment is as under:

D. Anchor Investors
The Company allotted 2,443,649 equity shares to 9 Anchor Investors in consultation with the Lead Managers. The Board of Directors of the Company at its meeting held at Kanpur on 13^th October, 2010 has approved the basis of allotment of Equity Shares of the Issue and has accordingly allotted/transferred the Equity Shares to the Bidders.
The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders, as registered with the depositories on or prior to October 15,2010. Further, the instructions to Self Certified Syndicate Banks have been dispatched/mailed on or prior to October 14,2010. In case the same is not received within 10 days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Account details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the listing applications with the Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE) on October 14,2010 and is taking steps to get the Equity Shares admitted for trading on the BSE and the NSE within seven working days from the date of approval of the basis of allotment.

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 Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
Unit: Commercial Engineers & Body Builders Co Limited
Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur, Hyderabad - 500081
Fax: 040-23420814; Email: einward.ris@Karvy.com

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 COMMERCIAL ENGINEERS & BODY BUILDERS CO LIMITED.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

'Commercial Engineers & Body Builders Co Limited' has made an initial public offering of its equity shares and has filed a Prospectus with the Registrar of Companies, Uttar Pradesh ('RoC'). The Prospectus is available on the website of the Securities and Exchange Board of India ('SEBI') at www.sebi.gov.in as well as on the websites of the book running lead managers at www.icicisecurities.com and www.edelcap.com. Any investor should note that investment in equity shares involves a high degree of risk. For details, investors should refer to the Prospectus which has been filed with the RoC including the section titled 'Risk Factors'.