Dagger Forst FPO Basis of Allotment

DAGGER FORST TOOLS LIMITED

(The Company was incorporated on 4th May 1865 aa Dagger Forst Tools Limited)
Registered Office: First Pokhran Road, Thane - 400606. Tel: +91-22-2S882531/32/33/34;
Fax: +91-22-25882540; website: www.daggerforst.com
Corporate Office: 1st Floor, Dalamal House, Nariman Point, Mumbai - 400 021.
Tel:+91-22-2282 1173/74, Fax: +91-22-2204 7835
Contact person: Mr. Bhuwnesh Bansal, Company Secretary and Compliance Officer;
E-mail: Complianceofficer@daggerforst.com

BASIS OF ALLOTMENT

Composite issue of 73,31,104 Equity Shares of Rs. 10/- each aggregating to Rs. 2900.00 Lacs comprising of:

1. Rights Issue of 33,24,954 Equity Shares of Rs.10/-each for cash at a premium of Rs. 23 per share (i.e., at a price of Rs. 33 per share) aggregating Rs, 1097.23 Lacs to the existing Equity Shareholders of the Company in the ratio of 5 Equity shares for every 7 Equity Shares held as on July 06,2007 (Record Date).

2.Public Issue of 40,06,150 Equity Shares of Rs. 10/- each for cash at a price of Rs. 45/- per share inclusive of premium aggregating Rs.1802.77 Lacs including Promoters Contribution of 4,00,000 Equity Shares for cash at price of Rs. 45 par share inclusive of premium aggregating to Rs. 180.00 Lacs. Thus net offer to public Is 36,06,150 Equity Shares for cash at price of Rs. 45 per share Inclusive of premium aggregating to Rs. 1622.77 Lacs.
The face value of the Equity Share is Rs. 10 per Equity Share and the rights Issue price of Rs. 33 is 3.3 times of the face value and the public Issue price of Rs. 45 Is 4.5 times of the face value. The net public Issue would constitute 30.09% of the post Issue paid up capital

RIGHTS ISSUE-BASIS OF ALLOCATION

On September 21,2007, the Committee of Directors, constituted by the Board of Directors, has approved the Basis of Allotment and allotted the said 33,21,053 Equity Shares. As per the Basis of Allotment, stated in the Offer Document, Equity shares were allotted in full to the Shareholders and Renouncees against applications towards their entitlement as stated in the Offer Document, allotment to shareholders against applications towards additional shares has been made considering the shares held by shareholders on July 06,2007(Record date) and the basis of allotment to shareholder who have applied for additional shares was finalized in consultation with BSE, the desingated Stock Exchange.

PUBLIC ISSUE-BASIS OF ALLOCATION
The Public Issue received 2861 valid applications for 3931150 shares resulting in the Issue being subscribed by 0.98128 times.

A)Allocation to Retail Investors
The Basis of Allocation to the Retail Investors was finalized in consultation with BSE. The total number of shares allotted in this category is 2420100 Equity Shares. The category-wise details of the Basis of Allocation is as alongside,

B) Allocation to Non-Institutional Investors
The Basis of Allocation to the Non-Institutional investors was finalized in consultation with BSE. The total number of shares allotted in this category is 1111050 Equity Shares. The category-wise detail of the Basis of Allocation is as under:

The Committee of Directors of the Company has approved the Basis of Allotment on September 21,2007 and has allotted shares to the valid applicants.

The physical refund warrants, intimation regarding refunds through electronic modes (ECS, RTGS, NEFT or Direct Credit) and allotment advice have been dispatched to the same address of the investors as registered with the depositories on September 24,2007. Incase the same is not received within ten days; investors may contact the addresses given below. The Refund Orders have been over-printed with the bank mandate details as registered, if any, with the depositories.

The equity shares allotted to applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned on September 25,2007. The listing application is being filed with BSE and the Company is taking steps to complete all formalities for listing and commencement of trading of Equity Shares within seven working days from the date of allotment.

INVESTORS PLEASE NOTE
This details of the allocation made are being hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com.
All the future correspondence in this regard may kindly be addressed to the Registrars to the Issue, whose address is furnished below, quoting full name of the First/sole applicant, Serial number of the application form, number of shares applied for, name of the Member of the Broker and place where the application was submitted and payment details.

Intime Spectrum Limited
C-13, Pannalal Silk Mills Compound, L.B.S Marg, Bhandup (W), Mumbai 400 076.
Tel: +91-22-2596 0320. Fax: +91-22-2596 0329
Email: daggerforst@intimespectrum.com.
Contact Person: Mr. Vishwas Attavar

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE OR THE BUSINESS PROSPECTS OF DAGGER FORST TOOLS LIMITED