DQ Entertainment IPO Basis of Allotment

DQ Entertainment (International) Limited

(Our company was incorporated on April 13,2007 as "Animation and Multimedia Private Limited" in Hyderabad, Andhra Pradesh. The name of our Company was change to "DQ Entertainment (International) Private Limited" by a special resolution passed at the EGM held on January 10,2008. The status of our Company was changed to a public limited company by a special resolution of the members passed at an EGM held on July 25,2009. The fresh certificate of incorporation consequent on change of status from private to public was granted to our Company on September 10,2009 by the RoC, Andhra Pradesh located at Hyderabad.)

Registered Office: 644, Aurora Colony, Road Number 3, Banjara Hills, Hyderabad - 500 034.
Tel: +91-40-23553726/27, Fax: +91-40-23552594 Email: investors@dqentertainment.com,
Website: http://www.dqentertainment.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 16,048,011 EQUITY SHARES OF RS.10 EACH OF DQ ENTERTAINMENT (INTERNATIONAL) LIMITED (OUR "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS.80/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS.70/- PER EQUITY SHARE), AGGREGATING RS.1281.59 (THE "ISSUE") MILLION. THE ISSUE INCLUDES A RESERVATION OF UP TO 321,011 EQUITY SHARES OF RS.10/-EACH FOR ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION") FOR CASH AT A PRICE OF RS.73/- PER EQUITY SHARE (INCLUDING ASHARE PREMIUM OF RS. 63/- PER EQUITY SHARE). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE "NET ISSUE". THE ISSUE WOULD CONSTITUTE 20.24% OF THE POST ISSUE PAID-UP CAPITALOF OUR COMPANY AND THE NET ISSUE WILL CONSTITUTE 19.84% OF THE POST ISSUE PAID UP CAPITAL OF OUR COMPANY

THE FACE VALUE PER EQUITY SHARE IS RS. 10 EACH. THE ISSUE PRICE PER EQUITY SHARE IS RS. 80/- OR 8 TIMES THE FACE VALUE.

The Issue has been made through the 100% Book Building Process wherein atleast 60% of the Net Issue shall be allocated to QIBs, of which 30% shall be available for allocation on a discretionary basis to Anchor Investors at the Anchor Investor Issue Price. Out of the net QIB Portion (QIB Portion less allocation to Anchor Investors), atleast 5% shall be availablefor allocation to Mutual Funds only and the remainder 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. Further, upto 10% of the Net Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and upto 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.

The Issue received 118,634 applications for 1,120,267,715 Equity Shares resulting in 69.80 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors categories and Employees are as under: (Before technical rejections)

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

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ("BSE") on March 22,2010.

A. Employees
The Basis of A llocation to the employees of the DQ Entertainment (International) Ltd, who have bid at cut-off or at the Issue Price of Rs.80/- per Equity Share, was finalized in consultation with BSE. The total number of shares allotted in this category is 172,960 at a price of Rs. 73/- per Equity Share in terms of the Prospecuts. The unsubscribed portion of 148,051 equity shares has been added back to the Net Issue.

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs.80/- per Equity Share, was finalized in consultation with BSE. This category has been over-subscribed to the extent of 18.86 times. Of the total applications received in the category, 116,692 applications for 89,874,195 Equity Shares were found valid and they were considered for allotment. The total number of Equity Shares allotted in Retail Individual Bidders category is 4,762,560 (including 44,460 Equity Shares being 30% of the unsubscribed portion of the Employee Reservation Portion) to 59,532 applicants. The category-wise details of the Basis of Allocation are as under:

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs.80/- per Equity Share, was finalized in consultation with BSE. This category has been over-subscribed to the extent of 250.80 times. 204 applications for 400,658,240 Equity Shares were found valid and they were considered for allotment. The total number of Equity Shares allotted in this category is 1,587,460 (including 14,760 Equity Shares being 10% of the unsubscribed portion of the Employee Reservation Portion) to 169 successful applicants. The category-wise details of the Basis of Allocation (sample) are as under:

D. Allocation to QIBs (excluding Anchor Investor Portion)
A total of 6,694,171 Equity Shares were allocated to QIBs has been done on a proportionate basis in consultation with BSE (including 88,831 equity shares being 60% of the unsubscribed portion of the Employee Reservation Portion were added to the QIB category). In accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 Mutual Funds were initially allotted 5% of the QIB Portion (excluding Anchor Investor Portion) i.e. 334,709 Equity Shares. The balance QIB portion, being 6,359,462 Equity Shares, was allocated on a proportionate basis to all QIBs including Mutual Funds.

E. Anchor Investors
The Company allocated 2,830,860 Equity Shares to 7 Anchor Investors on a discretionary basis in consultation with the Book Running Lead Manager.
The IPO Committee of the Board of Directors of the Company at its Meeting held at Hyderabad on March 23,2010 has approved the basis of allocation of Equity Shares of the Issue and has accordingly allotted the Equity Shares to all the successful 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 March 25,2010. Further, the instructions to Self Certified Syndicate Banks for unblocking of ASBA accounts have been dispatched on March 23,2010. 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 allocated 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 an application for listing with Bombay Stock Exchange Limited on 25^th March, 2010.

INVESTORS PLEASE NOTE
This details of the allocation made are hosted on the website of Registrar to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.com

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: DQ Entertainment (International) Limited
Plot No. 17 to24, Vithalrao Nagar, Hitech City Road, Madhapur
Hyderabad - 500081, Fax: 040-23420814
Email: einward.ris@karvy.com