Ethos Limited IPO Basis of Allotment

Our Company was originally incorporated as 'Kamla Retail Limited' under the provisions of Companies Act, 1956, at Parwanoo, Himachal Pradesh, pursuant to the certificate of incorporation dated November 5, 2007, issued by the Assistant Registrar of Compares Punjab, Himachal Pradesh and Chandigarh, Subsequently the name of our Company was changed to 'Ethos United' pursuant to a special resolution passed by the Shareholders of our Company on March 2, 2012 and a revised certificate of incorporate was issued by Registrar of Companies, Himachal Pradesh on March 5, 2012. For further details in relation to change in name and Registered Office of our Company, see "History and Certain Corporate Matters" on page 247 of the Prospectus dated May 25, 2022 ("Prospectus").

Our Company has Ned the Prospectus dated May 25, 2022 with the Registrar of Companies, Himachal Pradesh at Union Territory of Chandigarh and the Equity Shares are proposed to be listed on the National Stock Exchange of India Limited ("NSE")and BSE Limited ("BSE" and together with NSE, the "Stock Exchanges") and trading is expected to commence on May 30, 2022.

INITIAL PUBLIC OFFERING OF 45,81,500 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ("EQUITY SHARES") OF ETHOS LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF Rs. 878 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 868 PER EQUITY SHARE) ("OFFER PRICE") AGGREGATING TO Rs. 40,226 LAKHS (THE "OFFER") COMPRISING A FRESH ISSUE OF 42,71,070 EQUITY SHARES AGGREGATING TO RS 37,500* LAKHS (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 3,10,430 EQUITY SHARES AGGREGATING TO Rs. 2,726 LAKHS BY THE SELLING SHAREHOLDERS REFERRED TO IN ANNEXURE A OF THE PROSPECTUS (THE "OFFER FOR SALE"). THE OFFER WOULD CONSTITUTE 19.62% OF OUR POST-OFFER PAID-UP EQUITY SHARE CAPITAL.

*OUR COMPANY, IN CONSULTATION WITH THE BRLMS, HAS UNDERTAKEN A PRE-IPO PLACEMENT OF 3,02,663 EQUITY SHARES AGGREGATING TO Rs. 2,500 LAKHS ("PRE-IPO PLACEMENT"). THE SIZE OF THE FRESH ISSUE AS DISCLOSED IN THE DRAFT RED HERRING PROSPECTUS, AGGREGATING UP TO Rs. 40,000 LAKHS, HAS BEEN REDUCED BY 12,500 LAKHS PURSUANT TO THE PRE-IPO PLACEMENT, AND ACCORDINGLY, THE FRESH ISSUE IS OF UP TO Rs. 37,500 LAKHS. OUR COMPANY HAS INFORMED ALL THE PRE-IPO IN VESTORS/BUYER'S THAT THE OFFER MAY OR MAY NOT BE SUCCESSFUL AND THE EQUITY SHARES OF OUR COMPANY MAY OR MAY NOT GET LISTED.

#11,08,037 Equity Shares were offered under Offer by Selling Shareholders out of which 3,10,430 Equity Shares were accepted proportionately under the Offer for allotment. For details of the Equity Shares offered by Selling Shareholders, please refer to Annexure A of the Prospectus.

• Average cost of acquisition of Selling Shareholders:

$ As certified by B K S& Co., Chartered Accountants pursuant to their certificate dated May 25, 2022

• Details of Acquisition of all Equity Shares transacted in last five years, three years and one year:

* As certified by B K S & Co., Chartered Accountants vide its certificate dated May 10, 2022.

This was an Offer in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended ("SCRR"), read with Regulation 31 of the SEBI ICDR Regulations. The Offer was been made through the Book Building Process in terms of Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer was available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs", and such portion, the "QIB Portion"). Our Company and the Selling Shareholders, in consultation with the Book Running Lead Managers (BRLMs), allocated up to 60% of the QIB Portion, of the initial Offer size as envisaged at the time of Bid/Offer opening, to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations ("Anchor Investor Portion"), out of which at least one-third was available for allocation to domestic Mutual Funds only, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations. Further, 5% of the Net QIB Portion was available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion was available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Offer Price Further, not less than 15% of the Offer was available for allocation on a proportionate basis to Non-institutional Bidders and not less than 35% of the Offer was available for allocation to Retail Individual Bidders ("RIBs") in accordance with SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Of the Equity Shares which were available for allocation to Non-institutional Bidders under the Non- Institutional Portion: (i) one third of the portion was made available to Non-institutional Bidders were reserved for applicants with an application size of more than Rs. 2.00 Lakhs and up to Rs. 10.00 Lakhs and (ii) two third of the portion was made available to Non-institutional Bidders with application size of more than RS 10.00 Lakhs, provided that the unsubscribed portion in either of the aforementioned sub-categories may be allocated to applicants in the other sub-category of Non-institutional Bidders. All potential Bidders, other than Anchor Investors, were required to mandatorily utilise the Application Supported by Blocked Amount ("ASBA") process by providing details of their respective bank accounts (including UPI ID in case of RIBs and individual investor with an Application size of up to RS 5.00 lakhs in accordance with the UPI Circulars) which was blocked by the SCSBs, to participate in the Offer. Anchor Investors were not permitted to participate in the Offer through the ASBA Process. For further details, see ‘Offer Procedure' on page 479 of the Prospectus.

The bidding for Anchor Investor opened and closed on Tuesday, May 17, 2022. The Company received 9 applications from 9 anchor investors for 1,51,181 Equity Shares. The Anchor Investor Offer Price was finalized at Rs. 878 per Equity Share. A total of 16,13,725 Equity Shares were allocated under the Anchor Investor Portion aggregating to Rs. 1,41,68,50,550.

The Offer received 20,249 applications for 48,43,674 Equity Shares (including Underwriters) resulting in 1.05 times subscription as disclosed in Prospectus. The details of the applications received in the Offer from Retail Individual Investors, Non-Institutional Investors and QIBs are as under (before technical rejections)

# Pursuant to the Underwriting Agreement dated May 24, 2022 amongst Emkay Global Financial Services Limited ("Emkay") and InCred Capital Wealth Portfolio Managers Private Limited ("InCred") (together "BRLMs" or "Underwriters"), the Company and the Selling Shareholders, both the BRLMs in their capacity as Underwriters have agreed to underwrite for the maximum amount of Rs. 2,799,82 Lakhs, at a price equal to the highest end of the Price Band, i.e., Rs. 878 per Equity Share, on the terms and conditions set out under the Underwriting Agreement.

Subsequent to determination of valid bids and technical and other rejections. Registrar intimated the Company, Emkay and InCred on the shortfall in subscription level required to be in compliance with the requirements with Regulation 19(2)(b)(ii) of Securities Contract Regulations Rules, 1957 - Offer size of minimum Rs 400 crores for less than 25% dilution through the Offer Document.

Accordingly, the Registrar issued Devolvement Notice vide its letter dated May 24, 2022 for 3,18,886 Equity Shares for an amount of Rs. 27,99,81,908 and the respective share of devolvement of Emkay and InCred. Emkay and InCred vide their respective letters dated May 24, 2022, submitted their application / bid for 1,59,443 Equity Shares each aggregating to 3,18,886 Equity Shares at Rs. 878 per Equity Share for an amount aggregating to Rs. 27,99,81,908 and have transferred the amount to the Escrow Account opened for Anchor Investors.

ICICI Bank Limited as Escrow Agent vide its letter dated May 24, 2022, confirmed the receipt of funds in the escrow account. On confirmation, Emkay and InCred are eligible for allotment of 1,59,443 Equity Shares each aggregating to 3,18,886 Equity Shares as per the following table:

Unsubscribed portion of 3,18,886 Equity Shares brought-in by Underwriters given below.

Final Demand

A summary of the final demand as per BSE and NSE as on the Bid/Offer Closing Date at different Bid prices is as under.

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE Limited on May 25, 2022.

Unsubscribed portion of 1,216,214 Equity Snares spilled over to QIB & NIB Categories.

Includes spilled over of 1,06,040 Equity Shares from Retail Category

Unsubscribed portion of 1,45,664 Equity Shares spilled over to NIB above Rs. 10 Lakhs Category.

Includes spilled over of 3,57,765 Equity Shares from Retail Category & NIB more than Rs. 2 lakhs to Rs. 10 Lakhs category.

The IPO Committee of our Company at its meeting held on May 26, 2022. has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice Cum Refund Intimation will be dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Offer Account on May 25, 2022 and the payments to non-syndicate brokers have been issued on May 26, 2022. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on May 26, 2022 for credit into the respective beneficiary accounts subject to validation of the account details with the depositones concerned. The Company has filed the Listing application with BSE and NSE on May 26, 2022 The Company has received listing and trading approval from BSE and NSE on May 27, 2022, and trading is expected to commence on May 30, 2022.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated May 25, 2022 filed with the Registrar of Companies, Himachal Pradesh at Union Territory of Chandigarh (RoC).

INVESTORS PLEASE NOTE

These details of the Allotment made has been hosted on the website of Registrar to the Offer, KFIN TECHNOLOGIES LIMITED at www.kfintech.com.

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ Sole applicant. Serial number of the ASBA form, number of Equity Shares bid for. Bidders DP ID. Client ID, PAN, date of submission of the Bid cum Application Form, address of the Bidder, the name and address of the Designated Intermediary where the Bid cum Application form was submitted by the Bidder and Copy of the Acknowledgment slip received from the Designated intermediary and name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

KFin Technologies Limited

Selenium. Tower B, Plot No- 31 and 32. Financial District. Nanakramguda, Seriimgampally, Hyderabad, Rangareedi 500 032, Telangana

Tel: +91 40 6716 2222/180034 54001; E-mail: ethosltd@kfintech.com, Investor grievance e-mail: einward.ris@kfintech.com, Website: www.kfintech.com;

Contact person: M Murali Krishna; SEBI Registration No.: INR000000221

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 ETHOS LIMITED.

ETHOS LIMITED has filed the Prospectus with the RoC on May 25, 2022 and thereafter with SEBI and the Stock Exchanges. The Prospectus shall be available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the BRLMs, Emkay Global Financial Services Limited at www.emkayglobal.com and InCred Capital Wealth Portfolio Managers Private Limited at www.incredsecurities.com. the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see "Risk Factors" on page 39 of the Prospectus. Potential investors should not rely on the DRHP filed with SEBI for any investment decision.

This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the U S. Securities Act or an exemption from such registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company or the Selling Shareholders and that will contain detailed information about the Company and management, as well as financial statements. However, no offering of securities in the United States is contemplated.