September 10, 2007 - September 12, 2007

Dhanus Technologies IPO Basis of Allotment

This communication is intended for release solely in India and may not be released in the United States. The securities of Dhanus Technologies Limited have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from such registration under the U.S. Securities Act of 1933, as amended.
dhanus technologies limited

(Originally incorporated on April 2,1993 as Wantech Communications Private Limited with the Registrar of Companies, Tamil Nadu, Chennai. The name of the Company was changed to Dhanus E-Com Private Limited and a fresh certificate of incorporation was obtained on August 7,2000 from the Registrar of Companies, Tamil Nadu, Chennai. Subsequently, the Company was converted into a public limited company on September 18,2000 under section 44 of the Companies Act, 1956 and the name was changed to Dhanus E-Com Limited. The name of the Company was further changed to its present name Dhanus Technologies Limited on June 25,2004.)

Registered Office: 6-B, Mena Kampala Arcade, 113/114, Sir Theyagaraya Road, T. Nagar, Chennai - 600 017. Tel.: +91 44 28151135/28151635/39180735; Fax: +91 44 39180789.
Corporate Office: Suite 4-A, 4th Floor, 'A' Block, Mena Kampala Arcade, 113/114 Sir Theyagaraya Road, T. Nagar, Chennai - 600 017.
Contact Person/Compliance Officer: Mr. V. Baskaran, CFO & Company Secretary, E-mail: ipo@dhanus.net;
Website: www.dhanus.net

BASIS OF ALLOCATION

PUBLIC ISSUE OF 38,35,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 295/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 285/- PER EQUITY SHARE) AGGREGATING TO RS. 11313.25 LAKHS (HEREINAFTER REFERRED TO AS 'THE ISSUE'). THE ISSUE COMPRISED A RESERVATION FOR ELIGIBLE EMPLOYEES OF UPTO 2,00,000 EQUITY SHARES OF RS. 10/- EACH ('EMPLOYEE RESERVATION PORTION') AND THE NET ISSUE TO THE PUBLIC COMPRISED OF 36,35,000 EQUITY SHARES OF RS. 10/- EACH ('NET ISSUE'). THE ISSUE CONSTITUTES 21.37% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY. THE NET ISSUE CONSTITUTES 20.26% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.

ISSUE PRICE IS RS. 295/- PER EQUITY SHARE OF FACE VALUE OF RS. 10/- EACH. THE ISSUE PRICE IS 29.5 TIMES OF THE FACE VALUE.

In terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended from time to time ('SCRR'), this being an Issue for less than 25% of the post-Issue capital, the Issue is made through the 100% Book Building Process wherein at least 60% of the Net Issue has been allotted on a proportionate basis to Qualified Institutional Buyers ('QIBs'), out of which 5% is available for allocation on a proportionate basis to Mutual Funds only. The remainder is 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 60% of the Net Issue cannot be allotted to QIBs, then the entire application money will be refunded. Further, not less than 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net 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. Further upto 2,00,000 Equity Shares shall be available for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids being received at or above the Issue Price.
The Issue opened for subscription on Monday, September 10, 2007 and closed on Wednesday, September 12, 2007. The Issue received 1,00,206 applications for 10,84,86,300 equity shares resulting in 28.29 times subscription.
As advised by SEBI, the Company had published a public notice dated 26.09.2007 on 27.09.2007 in newspapers and the individual intimation letters dated 24.09.2007 was sent to all the applicants (including QIBs) on 25.09.2007. The Company had given an option to all the applicants (including QIBs) to withdraw their applications, if they wish to do so, within a period of ten (10) days from the date of the public notice. The last date for receipt of withdrawal was 06.10.2007. In view of the above, the Registrar has received requests for withdrawal of 17,363 applications for 5,29,85,580 shares. After considering the above withdrawals, the Issue remained oversubscribed 14.47 times.
The details of the subscriptions received in the Issue from Qualified Institutional Buyers, Non-Institutional Investors, Retail Individual Investors and Employee categories (After withdrawals & before technical rejections) are as under:

Category	No. of Applications	No. Shares	Subscription (no. of times)
Qualified Institutional Buyers	29	3,04,45,560	13.96
Non Institutional Investors	103	87,45,860	24.06
Retail Individual Investors	82,691	1,61,04,000	14.77
Eligible Employees	20	2,05,300	1.03

Final Demands
The final demand at different bid prices is as under:

Bid Price	No. of Shares	% of Total	Cumulative Total	Cumulative % of Total
280	837680	1.44	58283480	100.00
281	140	0.00	57445800	98.56
282	80	0.00	57445660	98.56
283	100	0.00	57445580	98.56
284	60	0.00	57445480	98.56
285	107480	0.18	57445420	98.56
286	80	0.00	57337940	98.38
287	620	0.00	57337860	98.38
288	580	0.00	57337240	98.38
289	20	0.00	57336660	98.38
290	706960	1.21	57336640	98.38
291	60	0.00	56629680	97.16
292	300	0.00	56629620	97.16
293	340	0.00	56629320	97.16
294	10880	0.02	56628980	97.16
295 & CUT OFF	56618100	97.14	56618100	97.14

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange-the Bombay Stock Exchange Limited ('BSE') on Tuesday, October 9,2007.
A. Allocation to Eligible Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at cut-off or at the Issue Price of Rs. 295/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 1.03 times. The total number of shares allotted in this category is 2,00,000 Equity Shares to 20 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category	No. of Applications	% to Total	No. of Shares Applied	% to Total	No. of Shares Allocated	Ratio	Total No.of Shares Allocated
40	2	10.00	80	0.04	40	FIRM	80
60	1	5.00	60	0.03	58	FIRM	58
100	1	5.00	100	0.05	97	FIRM	97
700	1	5.00	700	0.34	682	FIRM	682
3500	1	5.00	3,500	1.70	3410	FIRM	3,410
3560	1	5.00	3,560	1.73	3468	FIRM	3,468
3600	1	5.00	3,600	1.75	3507	FIRM	3,507
3700	1	5.00	3,700	1.80	3604	FIRM	3,604
12000	2	10.00	24,000	11.69	11690	FIRM	23,380
16000	1	5.00	16,000	7.79	15587	FIRM	15,587
18000	5	25.00	90,000	43.84	17535	FIRM	87,675
20000	3	15.00	60,000	29.23	19484	FIRM	58,452

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 295/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 14.54 times. The total number of shares allotted in this category is 10,90,516 Equity Shares to 50,856 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category	No.of Applications	% to Total	No. of Shares Applied	% to Total	No. of Shares Allocated	Ratio	Total No. of Shares Allocated
20	10,767	13.26	2,15,340	1.36	20	4:57	15,080
40	6,480	7.98	2,59,200	1.63	20	11:80	17,820
60	3,768	4.64	2,26,080	1.43	20	20:97	15,540
80	2,657	3.27	2,12,560	1.34	20	11:40	14,620
100	4,741	5.84	4,74,100	2.99	20	11:32	32,600
120	1,389	1.71	1,66,680	1.05	20	33:80	11,460
140	1,088	1.34	1,52,320	0.96	20	13:27	10,480
160	9,097	11.21	14,55,520	9.18	20	11:20	1,00,100
180	1,102	1.36	1,98,360	1.25	20	13:21	13,640
200	1,876	2.31	3,75,200	2.37	20	11:16	25,800
220	369	0.45	81,180	0.51	20	31:41	5,580
240	423	0.52	1,01,520	0.64	20	33:40	6,980
260	234	0.29	60,840	0.38	20	25:28	4,180
280	179	0.22	50,120	0.32	20	49:51	3,440
300	594	0.73	1,78,200	1.12	21	58:59	12,264
320	36,406	44.85	1,16,49,920	73.47	22	FIRM	8,00,932

C. Allocation to Non-Institutional Investors (After Technical Rejections)
The Basis of Allocation to this category, who has bid at the Issue Price of Rs. 295/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 24.04 times. The total number of shares allotted in this category is 3,63,517 Equity Shares to 83 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category	No. of Applications	% to Total	No. of Shares Applied	% to Total	No. of Shares Allocated	Ratio	Total No. of Shares Allocated
340	8	9.30	2,720	0.03	20	3:4	120
360	2	2.33	720	0.01	20	FIRM	40
400	5	5.81	2,000	0.02	20	4:5	80
480	1	1.16	480	0.01	20	FIRM	20
500	3	3.49	1,500	0.02	21	FIRM	63
600	1	1.16	600	0.01	25	FIRM	25
640	1	1.16	640	0.01	27	FIRM	27
660	1	1.16	660	0.01	27	FIRM	27
680	3	3.49	2,040	0.02	28	FIRM	84
1000	2	2.33	2,000	0.02	42	FIRM	84
1680	2	2.33	3,360	0.04	70	FIRM	140
2000	2	2.33	4,000	0.05	83	FIRM	166
3700	1	1.16	3,700	0.04	154	FIRM	154
4500	1	1.16	4,500	0.05	187	FIRM	187
5500	1	1.16	5,500	0.06	229	FIRM	229
5780	1	1.16	5,780	0.07	240	FIRM	240
6400	1	1.16	6,400	0.07	266	FIRM	266
6760	2	2.33	13,520	0.15	281	FIRM	562
7000	1	1.16	7,000	0.08	291	FIRM	291
8460	3	3.49	25,380	0.29	352	FIRM	1,056
8600	1	1.16	8,600	0.10	358	FIRM	358
9000	1	1.16	9,000	0.10	374	FIRM	374
9140	1	1.16	9,140	0.10	380	FIRM	380
9600	1	1.16	9,600	0.11	399	FIRM	399
10000	4	4.65	40,000	0.46	416	FIRM	1,664
12000	1	1.16	12,000	0.14	499	FIRM	499
15000	1	1.16	15,000	0.17	624	FIRM	624
16920	1	1.16	16,920	0.19	704	FIRM	704
16940	2	2.33	33,880	0.39	705	FIRM	1,410
17000	1	1.16	17,000	0.19	707	FIRM	707
20320	3	3.49	60,960	0.70	845	FIRM	2,535
25100	1	1.16	25,100	0.29	1,044	FIRM	1,044
25420	1	1.16	25,420	0.29	1,057	FIRM	1,057
33800	1	1.16	33,800	0.39	1,406	FIRM	1,406
33880	1	1.16	33,880	0.39	1,409	FIRM	1,409
33900	1	1.16	33,900	0.39	1,410	FIRM	1,410
34000	1	1.16	34,000	0.39	1,414	FIRM	1,414
40000	1	1.16	40,000	0.46	1,664	FIRM	1,664
47440	1	1.16	47,440	0.54	1,973	FIRM	1,973
50000	4	4.65	2,00,000	2.29	2,080	FIRM	8,320
67700	1	1.16	67,700	0.77	2,816	FIRM	2,816
70000	1	1.16	70,000	0.80	2,911	FIRM	2,911
84740	1	1.16	84,740	0.97	3,525	FIRM	3,525
100000	1	1.16	1,00,000	1.14	4,159	FIRM	4,159
170000	1	1.16	1,70,000	1.95	7,071	FIRM	7,071
175000	2	2.33	3,50,000	4.00	7,279	FIRM	14,558
360000	1	1.16	3,60,000	4.12	14,973	FIRM	14,973
363500	1	1.16	3,63,500	4.16	15,119	FIRM	15,119
655000	1	1.16	6,55,000	7.49	27,243	FIRM	27,243
677980	1	1.16	6,77,980	7.76	28,199	FIRM	28,199
847500	3	3.49	25,42,500	29.09	35,250	FIRM	1,05,750
2500000	1	1.16	25,00,000	28.61	1,03,981	FIRM	1,03,981

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were allotted 50,800 shares and other QIBs were allotted the remaining available shares, i.e., 21,30,200 equity shares on proportionate basis.

Category	Fls/Banks	MFs	Flls	VCs	Total
No. of Shares	1,64,355	50,800	19,00,494	65,351	21,81,000

The Board of Directors of the Company has, at its Meeting held at Chennai on October 11,2007, approved the basis of allocation of Equity Shares and allotted the Shares to various successful applicants, in consultation with the BSE. The Company has filed the listing application with the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited on October 12,2007.

The Confirmation of Allocation Note ('CAN'), Refund Orders and ECS/RTGS/NEFT/Direct Credit Intimation and notices (where applicable) have been dispatched to the address of the Investors as registered with the depositories. In case the same is not received within ten (10) days, Investors may contact the Registrar to the Issue 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 allotted to the successful applicants have been credited to their respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is taking steps to get the Equity Shares admitted for trading on the Bombay Stock Exchange Limited ('BSE') and National Stock Exchange of India Limited ('NSE') within seven (7) working days from the date of approval of the Basis of Allocation.

INVESTORS PLEASE NOTE
These details of the allotment made have been hosted on the website of the Registrars to the Issue, Cameo Corporate Services Limited at www.cameoindia.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-Appllcation 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:

CAMEO CORPORATE SERVICES LIMITED
Unit: Dhanus Technologies Limited
'Subramanian Buildings', No. 1, Club House Road, Chennai 600002
Tel:+91-44-28460390,28461989,28460014,28461173
Fax:+91-44-28460129, E-mail: dhanus@cameoindia.com
Contact Person: Mr. R.D. Ramasamy

This is to inform all Investors that it has been brought to the knowledge of the Company that a regular case has been registered by the Central Bureau of Investigation ('CBI') on August 23,2007 against the Company and unknown public servants in crime number RC MAI 2007 A 0042 of CBI, ACB, Chennai u/s 120-B r/w u/s 120-B IPC r/w 20 r/w Sec 4 of Indian Telegraph Act, 1885 and Sec 13(2) r/w 13(1)(d) of PC Act, 1988 regarding criminal conspiracy and illegal marketing of telegraph products and abuse of official position, based on a complaint from Divisional Engineer Telecom (Vigilance & Telecom Monitoring).

The Company wishes to clarify that It was not aware of the above case registered against it, as no Summons or Notice or copy of the said case/crime number has been received by the Company. The Company is taking appropriate steps to clarify to the authorities that it has obtained a 'No Objection Certificate' (NOC) vide letter no. 808-37/2007-CS dated 19.9.2007 from the Department of Telecommunications, Government of India, for sale of International Calling Cards in India which is subject to certain conditions mentioned in the said letter. The conditions specified in the NOC from DOT, as applicable, are being satisfied by the Company.

Place : Chennai Date : October 12,2007	For Dhanus Technologies Limited Sd/- Executive Chairman

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 DHANUS TECHNOLOGIES LIMITED.

Dhanus Technologies IPO Basis of Allotment FAQs

The IPO allocation is based on the subscription level and the investor category.

Refer to IPO allotment rules and methods for more details.

See the basis of allotment document above to know how the shares are allocated in Dhanus Technologies IPO .

The Dhanus Technologies IPO basis of allotment (published above) tells you how shares are allocated to you in Dhanus Technologies IPO and category wise demand of IPO share.

Visit the Dhanus Technologies IPO allotment status page to check the number of shares allocated to your application.

In Dhanus Technologies IPO allotment process, the registrar separates valid and invalid applications. The invalid applications with technical errors are rejected and only valid applications at or above the cut-off price are considered for allotment.

For more information, please refer to IPO Allotment Process and Basis of Allotment.

Check the Dhanus Technologies IPO basis of allotment document to know how the shares are allocated in Dhanus Technologies IPO.

Dhanus Technologies IPO Basis of Allotment

Dhanus Technologies IPO Basis of Allotment FAQs

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