Edserv Softsystems IPO Basis of Allotment

EDSERV SOFTSYSTEMS LIMITED
Incorporated as a Private Limited Company on March 13,2001 under the Companies Act, 1956 as M/s. Lambent Systems Private Limited vide Certificate of Incorporation issued by the Ragistrar of Companies, Chennai. The name of the company was changed to M/s. Lambent Systems private limited with effect from December 05,2001 and a fresh certificate of Incorporation was obtained from Registrar of Companies, Chennai. Subsequently the name was changed to M/s. Edserv Soft systems Private Limited and a fresh certificate of incorporation consequent to change of name was obtained on january 09,2008. The name was further changed to M/s. Edserv SoftSystems Limited upon conversion into public limited company and a fresh certificate of incorporation was obtained on April22,2008.
Registered Office: 1st Floor, Parma Plaza, New No. 139, Arcot Road, Kodamoakkam, Chennai 600 024
Tel.: 91-044- 64537216 Fax: 91- 044 - 23724088; e-mail:Info@edserv.in Website: www.edserv.in
Contact Person: Mr. V. Ramaseshan, Company Secretary &Compliance Officer

This Issue was made through a 100% Book Building Process wherein at least 50% of the Net Issue will be allocated to Qualified Institutional Buyers (QIBs) on a proportionate basis, subject to valid bids being received at or above the Issue Price. Out of the portion available for allocation to the QIBs, 5% will be available for allocation to mutual funds only. Mutual Fund Bidders shall also be eligible for proportionate allocation under the balance available for the QIBs. Further, atleast 15% of the Net Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and upto 35% 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 opened for subscription on February 05,2009 and closed on February 09, 2009. The Issue receive 2,113 applications for 47,97,900 Equity shares resulting in 1.20 times subscription.
The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional investors, Retail Individual Investors and Employee categories are as under (Before technical rejections)

Note: the above analysis is based on electronic bids.
The Basis of Allotment was finalized in consultation with The Bombay Stock Exchange Limited ('BSE') on February 19,2009. Details of valid applications received and allotments done are as under:

A) Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Employees In the Firm Allotment category, who bid at cut-off price or at the Issue Price at Rs. 60 per Equity Share, was finalized In consultation with the BSE. The Company received 4 valid applications for 7,800 Equity Shares as against a Firm allotment portion of 2,00,000 Equity Shares resulting in 0.04 times of subscription. The unsubscribed shares of Employees Reservation portion, i.e. 1,92,200 shares was equally distributed amongst the Qualified Institutional Buyers & Non Institutional Investors category. The category-wise details of the Basis of Allotment of Employees are as under:

B)Allocation to Retail Individual Investors (After Technical Rejections)
The Basis ol Allocation to the Retail Individual nvestors, who have bid at cut-off or at the Issue price of Rs.60 per Equity Share, was finalized In consultation with BSE.The category was subscribed to the extent of 0.98 times. The total number of shares allotted in this category is 12,90,200 Equity Shares to 2043 successful applicants. The unsubscribed shares of Retail Individual Investors, i.e. 30,668 shares was added to Non Institutional Irrvestors category. 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 this category, who bid at the issue price of Rs. 60 per equity share, was finalized in consultaion with BSE. The category was subscribed to the extent of 1.87 times. The total number of shares alloted in this category is 6,92,854 Equity Shares to 39 successful applicants. The category wise details of the Basis of Allocation are as under:

D)Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultion with BSE after addition of unsubscribed portion of 96,100 equity shares of  Employee Category. As per the SEBI guidelines, Mutual Funds were to be initally allottes 5% of the quantum of shares available i.e.99,153, however these were no applications from mutual funds.

The Board of Directors of the company an it's meeting held at Chennai on February 19,2009 has approved the basis of allocation of shares and has alloted the shares to various successful applicants.

The Refund Orders and ECS/RTGS/NEFT/Direct Credit Intimation has been dispatched on February 24,2009 to the same address of the investors as registered with the depositories. In case the same not received within ten  days,investors may contact the Registrar to the issue, at the address given below.The company has filled the listing application wtth the Bombay Stock Exchange Limited on February 20,2009 and The National Stock Exchange of India Limited on February 24,2009. The Refund Orders have been over-printed with the Bank Mandate details as registered, it any, with the depositories. The shares allocated to the successful applicants have being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The compariy is taking steps to get the equity shares admitted for trading on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited within seven working days from the date of approval of the basts of allocation.

INVESTORS PLEASE NOTE

This details of the allocation made would be hosted on the website of Registrars to the Issue, Karvy Computershare Private Limited at www.karvy.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-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 gjven below:

KARVY COMPUTERSHARE PRIVATE LTD.
Uni: EdServ Softsystems Limited, 'Karvy House', 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad-500 034. Tel: +9140-2331 2454, Fax: +91-40-23311968,
E-mail: edserv.ipo@karvy.com

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 EDSERV SOFTSYSTEMS LIMITED