Fineotex IPO Basis of Allotment

FINEOTEX CHEMICAL LIMITED

Our Company was incorporated as 'Fineotex Chemical Private Limited' under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated January 30,2004. Our Company was converted into a public limited company vide a fresh Certificate of Incorporation dated October 19,2007 and consequently the name of our Company was changed to 'Fineotex Chemical Limited'. The Corporate Identification Number of our Company is U24100MH2004PLC144295.

Registered & Corporate Office: 42-43, Manorama Chambers, S. V. Road, Bandra (West), Mumbai - 400 050. Tel.: +9122 2655 9174 / 75; Fax: +9122 2655 9178 Email: ipo@fineotex.com; Website: www.fineotex.com; Contact Person: Mr. A V. Nerurkar, Compliance Officer & Company Secretary.
Promoters: Mr. Surendra Kumar Tibrewala, Mr. Sanjay Tibrewala, Mrs. Kanaklata Tibrewala, Ms. Ritu Tibrewala, Proton Biochem Private Limited, Kamal Chemicals Private Limited and Surendra Kumar Tibrewala (HUF).

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 42,11,160 EQUITY SHARES OF RS.10/- EACH AT A PRICE OF RS. 70/- PER EQUITY SHARE (INCLUDING A PREMIUM OF RS. 60/- PER EQUITY SHARE) FOR CASH AGGREGATING UPTO RS. 2,947.81 LACS (THE 'ISSUE'), BY FINEOTEX CHEMICAL LIMITED (THE 'COMPANY' OR THE 'ISSUER'). THE ISSUE WILL CONSTITUTE 37.50% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY.

BID/ISSUE OPENED ON FEBRUARY 23,2011, CLOSED ON FEBRUARY 25,2011.
The Equity Shares of the Company are proposed to be listed on Bombay Stock Exchange Limited ('BSE'). The trading will commence on March 11,2011.

ISSUE PRICE: RS. 70/- PER EQUITY SHARE OF FACE VALUE OF RS. 10/- EACH. THE ISSUE PRICE IS 7.00 TIMES OF THE FACE VALUE.
This Issue was made through a 100% Book Building Process wherein not more than 50% of the 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. 5% of the QIB Portion shall be available for allocation on proportionate basis to Mutual Funds only and the remaining Net QIB portion shall be available for allocation on a proportionate basis to all Qualified Institutional Buyers, including Mutual Funds, subject to valid bids being received at or above Issue Price. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35% of the 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 4,934 applications for 64,27,620 equity shares resulting in 1.52 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investor categories are as under: (Before technical rejections)

* includes original reservation of 6,31,674 shares and spill over from QIB category of 6,31,674.
** includes original reservation of 14,73,906 shares, spill over from QIB category of 14,73,906 and 11,44,008 of Non Institutional category.

Final Demand
A summary of the final demand as per BSE and NSE as on the Bid/Issue Closinq date at different bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ('BSE') on March 7, 2011. The Board of Directors of the Company at its Meeting held at Mumbai, on March 8, 2011 allotted the Equity Shares to the successful applicants. Details of valid applications received and allotments done are as under:

A. Allotment to Retail Individual Investors (After Technical Rejections)
The Basis of Allotment to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 70/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 1.50 times. As per the Prospectus, the spill over portion from QIB Category was 14,73,906 equity shares and 11,44,008 from Non Institutional Category. The total number of equity shares allotted in this category is 40,91,871 Equity Shares to 4,116 successful applicants. The category-wise details of the Basis of Allotment are as under;.

* Due to rounding off, the proposed allotment is excess by 51 shares in retail category.

B. Allotment to Non Institutional Investors (After Technical Rejections)
The Basis of Allotment to Non Institutional Investors, who have bid at the Issue Price of Rs. 70/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 0.09 times. As per the Prospectus, the spill over portion from QIB Category was 6,31,674 equity shares. The total number of equity shares allotted in this category is 1,19,340 to 2 successful applicants. All the applicants in this category have been given firm allotment.

C. Allotment to QIBs (After Technical Rejections)
There was no allotment to QIBs in this issue as no applications were received from QIBs. The spill over portion to the extent of 14,73,906 equity shares has been added to the Retail Category and 6,31,674 equity shares has been added to Non Institutional Investors.

Refunds have been made through NECS and Direct Credit, Into the Bank Accounts of the applicants, as registered with the depositories. For other applicants Refund Orders have been dispatched to their address 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 over-printed with the Bank Mandate details as registered, if any, with the depositories. The 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 is taking steps to get the equity shares admitted for trading on the Bombay Stock Exchange Limited within four working days from the date of approval of the Basis of Allotment. The trading will commence on March 11, 2011.

Note: All capitalized terms used and not defined herein shall have the respective meaning assigned to them in the Prospectus dated February 26, 2011 ('Prospectus').;

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 given below:

Bigshare Services Private Ltd., E2, Ansa Industrial Estate, Saki Vihar Road, Saki Naka, Andheri East, Mumbai-400 072. Tel.: +9122 4043 0200/2847 0652, Fax: +91 22 2847 5207, Email: ipo@bigshareonline.com, SEBI Registration No: INR000001385