Fortis Healthcare IPO Basis of Allotment

FORTIS HEALTHCARE LIMITED

(The Company was incorporated on February 28,1996 as a public limited company under the Companies Act, 1956)       Registered Office: Piccadily House, 275-276,4th Floor, Captain Gaur Marg, Srinivas Puri, New Delhi-110065, India; Phone: +91 114229 5222; Fax: +91 114180 2121;
Email: fortisipo@fortishhealthcare.com; Contact Person: Ms. Neerja Sharma
Tel: +91 11 2682 5000; Website: www.fortishealthcare.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 45,996,439 EQUTTY SHARE OF RS.10 EACH FOR CASH AT A PRICE OF RS.108 PER EQUITY SHARE AGGREGATING RS.4967.62 MILLION (THE 'ISSUE')BY FORTIS HEALTHCARE LIMITED('FORTIS HEALTHCARE' OR THE 'COMPANY'OR THE 'ISSUER'). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 45,753,963 EQUITY SHARES OF RS.10 EACH (THE 'NET ISSUE') AND A FIRM ALLOTMENT OF 242,476 EQUITY SHARES OF RS.10 EACH TO THE ELIGIBLE EMPLOYEES OF THE COMPANY, AT THE ISSUE PRICE. THE ISSUE WILL CONSTITUTE UPTO 20.19% OF THE FULLY DILUTED POST-ISSUE PAID-UP CAPITAL OF THE COMPANY.

THE ISSUE PRICE OF THE EQUITY SHARES IS RS.108 PER EQUITY SHARE WHICH IS 10.8 TIMES THE  FACE VALUE OF THE EQUITY SHARES.

The Issue was made through the 100% Book Building Process wherein atleast 60% of the Net Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (including 5% of the QIB portion that would be specifically reserved for Mutual Funds). Further, not less than 10% of the  Net Issue was to be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net issue was to be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. 242,476 shares were to be allotted on a Firm Allotment basis to Eligible Employees. The Issue opened for subscription on April 16,2007 and closed on April 20,2007. The Issue received 118,206 applications for 128,449,696 Equity Shares resulting in 2.79 times subscription. The details of the applications received in the Issue from QIBs, Non-Institutional Bidders, Retail Individual Bidders and Eligible Employee categories are as under.

Final Demand
The final demand at different bid prices is as under:

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited ('BSE') on Saturday, April 30,2007.

A) Allocation to Employees
The Basis of Allotment to the Employees in the Firm Allotment category, who bid at the cut-off price or at the Issue Price of Rs. 108 per Equity Share, was finalized in consultation with the BSE. The Company received 105 valid applications for 242,476 Equity Shares as against a Firm Allotment portion of 242476 Equity Shares resulting in 1.00 times subscription. The category wide details of the Basis of Allotment are given below (Sample):

B) Allocation to Retail Investors
The Basis of Allotment to the Retail Individual Bidders, who bid at the cut-off price or at the Issue Price of Rs. 108 per Equity Share, was finalized in consultation with the BSE. The Company received 114,567 valid applications for 40,476,480 Equity Shares in this category resulting in 2.94 times subscription. The total number of Equity Shares allotted in this category is 13726238. The category wide details of the Basis of Allotment are given below:

C) Allocation to Non Institutional Bidders
The Basis of Allotment to the Non Institutional Bidders, who bid at the cut-off price or at the Issue Price of Rs. 108 per Equity Share, was finalized in consultation with the BSE. The Company received 256 valid applications for 4,881,480 Equity Shares in this category resulting in 1.06 times subscription. The total number of Equity Shares allotted in this category is 4,575,347. The category wide details of the Basis of Allotment are given below (Sample):

D) Allocation to QIBs
Allocation to QIBs was done on a proportionate basis. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available 27,452,378 Equity Shares. Other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining 26,079,759 Equity Shares.

The IPO Committee of the Board at a meeting held in Gurgaon on April 30,2007 approved the Basis of Allotment of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants. The Refund Orders / allotment advice in respect of refunds due to applicants are being dispatched to the addresses of the investors as registered with the depositories. In case the same are not received within ten days, investors may contact the Registrar to the Issue 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 the 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 National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of Basis of Allotment.

INVESTORS PLEASE NOTE
These details of the allocation will also be available on the website of the Registrar to the Issue, Intime Spectrum Registry Limited, at http://www.intimespectrum.com
All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting the full name of the First/Sole applicants, Serial number of the Bid-cum-Appiication 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:
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 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 SilkMillsCompound, LBS Marg, Bhandup(West), Mumbai 400078
Phone:(91-22)25960320; Fax: (91-22)25960329,
Email : fhlipo@intimespectrum.com Website: www.intimespectrum.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 FORTIS HEALTHCARE LIMITED.

IMPORTANT RISK FACTOR FOR ATTENTION OF INVESTORS: In terms of a recent court order, the following extract of the Prospectus is disclosed: 'A civil suit has been filed by Anil Nanda, a member of the former Delhi Society, for a declaration and permanent injunction against Escorts Heart Institute and Research Limited ('EHIRCL'), among others, In the Delhi High Court seeking, inter alia, (a) to void the amalgamation of EWRCL's predecessors, Delhi Society and Chandigarh Society, and the subsequent Incorporation of the amalgamated society as a limited company (i.e., EHIRCL) and, by Implication, void the Escorts hospitals acquisition and (b) to restrain Escorts Limited from transferring or creating any third party rights with respect to Its shares in EHIRCL. The High Court has ordered the parties to maintain the status quo as of September 30,2005. If the plaintiff in this matter is successful, the merger and Incorporation which made EHIRCL a for-profit limited company in April and May 2000, respectively, could be annulled, as could our acquisition of EHIRCL. If either the merger or the Incorporation is annulled, we may be unable to recover the consideration we paid in respect of the Escorts hospitals acquisition. Although we may have a claim against the sellers in the Escorts hospitals acquisition for breach of warranty in the event the litigation challenging our corporate existence is resolved in a manner adverse to us, we may not be able to recover amounts paid by us in connection therewith from the sellers.''
AVAILABILITY OF PROSPECTUS: Investors are advised to refer to the Prospectus and the Risk Factors contained therein in relation to the Issue. The Prospectus is available at www.sebi.gov.in and at the websites of the Book Running Lead Managers at www.jmmorganstanley.com, www.citibank.co.in, www.kotak.com, and the BSE and the NSE at www.bseindia.com and www.nseindia.com.