Fiem IPO Basis of Allotment

FIEM INDUSTRIES LIMITED

(Our Company was originally incorporated in india as Rahul Auto Private Limited on February 6,1989 in New Delhi under the Companies Act 1956 vide registration no. 55-34928. The name of our Company was changed to FIEM Industries Private Limited we.f. May 7, 1992. Subsequently, our Company was converted into a public limited Company w.e.f. November 30, 1993, pursuant to which, the name of our Company was changed to FIEM industries Limited)

REGISTERED OFFICE: D-34, DSIDC Packaging Complex, kirti Nagar, New Delhi 110 015, India.
Tel.: +91 11 2592 7919 / 7820 Fax: +91 11 2592 7740.
(For details of the changes in the address of the registered office of our Company, please refer to page no. 88 of the Prospectus.)

CORPORATE OFFICE: 32 Mile Stone, G.T.Road, Kundli, Distt. Sonepat, Haryana, indla.
Tel.: +91 130  2219 172/73/74/75/76 Fax: +91 130 2219 179, Website: www.fiemauto.com,
E-mail: investor@fiemindustries.com
Contact person: Mr. Arvind K. Chauhan, Company Secretary & Compliance Officer.

BASIS OF ALLOCATION

PUBLIC ISSUE OF 4,100,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH OF FIEM INDUSTRIES LIMITED (HEREINAFTER REFERRED TO AS THE 'COMPANY' OR 'ISSUER') FOR CASH AT A PREMIUM OF RS. 127 PER EQUITY SHARE AND AT A PRICE OF RS. 137 PER EQUITY SHARE AGGREGATING RS. 561.70 MILLION (HEREINAFTER REFERRED TO AS THE 'ISSUE'). THE ISSUE COMPRISES OF A RESERVATION FOR ELIGIBLE EMPLOYEES OF 400,000 EQUITY SHARES OF RS. 10 EACH AND A NET ISSUE TO THE PUBLIC OF 3,700,000 EQUITY SHARES OF RS. 10 EACH (HEREINAFTER REFERRED TO AS THE 'NET ISSUE'). THE ISSUE CONSTITUTES 34.58% OF THE TOTAL POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY

ISSUE PRICE: RS. 137 PER EQUITY SHARE OF FACE VALUE OF RS. 10 EACH
THE ISSUE PRICE IS 13.7 TIMES THE FACE VALUE.

The Issue was made through the 100% book building process wherein up to 50% of the Net Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB portion shall be available for allocation on proportionate basis to all Qualified Institutional Buyers, including mutual funds, subject to valid bids being received at or above the issue price. Further, not less than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received from them at or above the Issue Price.

The Issue received 15513 applications for 10411110 Equity Shares resulting in 2.539 times subscription. The details of the applications received in the Issue from Retail Individual Bidders, Non Institutional Investors, Qualified Institutional Buyers and Employees categories is as under (before technical & multiple rejections):

*Including bids received at cut off price #After eliminating cheque returns

Final Demand
A sample of the final demand at different bid prices is as under:

The Basis of Allotment was finalised in consultation with Bombay Stock Exchange Limited ('BSE') on October 10, 2006.

A) Allocation to Retall Individual Bidders

The basis of allocation to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs.137 per Equity Share, was finalized in consultation with BSE. The category was subscribed 1.974 times. The total number of Equity Shares allotted in this category is 2062576 Equity Shares which includes original reservation of 1295000 Equity Shares for Retail individual Bidders category, spill over of 373315 Equity Shares from Employee category and spilt over of 394260 Equity Shares from Non Institutional Bidders category. The sample of the category-wise details of the Basis of Allocation is as under.

B) Allocation to Non Institutional Bidders

The Basis of Allocation to the Non Institutional Investors, who have bid for at the Issue Price of Rs.137 per Equity Share, was finalized in consultation with BSE. The category was subscribed 0.290 times. The total number of Equity Shares allotted in this category is 160740 Equity Shares. The unsubscribed portion of 394260 Equity Shares was added to the Retail Individual Bidders category. A sample of category-wise details of the Basis of allocation is as under:

C) Allocation to Qualified Institutional Bidders

Allocation to OIBs has been made on a proportionate basis in consultation with BSE. As per the SEBI Guidelines, Mutual Funds were initially allotted 5% of the QIB portion (92,500 Equity Shares) and the remaining QIB portion (1,757,500 Equity Shares) was allocated to Net Issue.

D) Allocation to Employees

The Basis of Allocation to the Employees category, who have bid at cut-off or at the Issue Price of Rs.137 per Equity Share, was finalized in consultation with BSE. The category was subscribed 0.067 times. Hence, FULL and FIRM allotments have been made against all valid applications. The total number of Equity Shares allotted in this category is 26685 Equity Shares. The unsubscribed portion of 373315 Equity Shares was added to the Retail Individual Bidders category.

The Board of Directors of FIEM Industries Limited at its meeting held at Kundli, Distt. Sonepat (Haryana) on October 11, 2006 has approved the basis of allocation of Equity Shares and allotted the Equity Shares to various successful applicants.

Bidders should note that on the basis of name of the Bidders, DP ID and Client ID provided by them in the Bid cum Application Form, Registrar to the Issue has obtained from the Demographic Details of the Bidders details such as address, bank account details alongwfh the nine digit MICR Code and occupation (herein after referred to as 'Demographic Details') from the Depositories. These Demographic Details have been used for all correspondence with the Bidders including malling of the refund orders/CANs/Allocation Advice/Refund Advice, printing of bank particulars on the refund order and for refunds through ECS/Direct Credit/RTGS. The Demographic Details given by the Bidders in the Bid-cum-application form would not be used for these purposes by the Registrar. Investors should also note that the bank particulars received from the Depositories have been used for refund through ECS/Direct Credit/RTGS and overprinted on the refund orders. Applicants having a bank account in any of the 15 centres where clearing houses are managed by the Reserve Bank of India (RBI) viz. Ahmedabad, Bangalore, Bhubaneshwar, Chandigarh, Chennai, Guwahatt, Hyderabad, Jaipur, Kanpur, Kolkata, Mumbai, Nagpur, New Delhi Patna and Thiruvananthapuram, will get refunds though mandatory Electronic Clearance Scheme (ECS) only, except where applicant is otherwise disclosed as eligible to get refunds through direct credit or Real Time Gross Settlement (RTGS). Applicants having a bank account at any of the 15 centers detailed above, and whose bid amount exceeds Rs.1 million, were eligible to exercise the option to receive refunds, if any, through RTGS If the IFSC code was mentioned in the Bid-cum-application form.

The despatch of Refund Orders has been completed by October 12, 2006 to the address of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact at the address given below. The refund orders have been printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allocated to the successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has submitted the listing application on October 12, 2006. The Company is taking steps to get the Equity shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited and within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

The details of the allocation made have been boated on the website of Registrar to the Issue viz, Intime Spectrum Registry Limited at www.intimespectrum.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 and place where the bid was submitted and payment details at the address given below:

INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalal Silk Mills Compound, L. B. S. Mug, Bhandup-(W), Mumbai-400 078. TeL: +91 22 2596 0320
Fax: +91 22 2596 0329 Webstte: www.intimespectrum.com  
Email:fiemipo@intimespectrum.com

For FIEM Industries Limited
Sd/
J.K Jain
Chairman and Managing Director