GBN IPO Basis of Allotment

GLOBAL BROADCAST NEWS LIMITED

(Incorporated on June 6, 2005 under the Companies Act, 1956 as a private limited company. The Company was converted into a public limited company under Section 44 of the Companies Act with effect from December 12, 2005 and its name was changed to Global Broadcast News Limited.)
Registered Office: 601, 6th Floor, Commercial Tower, Hotel Le-Meridien, Raisins Road, New Delhi 110 001
Corporate Office: Express Trade Towers, Plot No. 15 & 16, Sector 18A, Noida, Utter Pradesh 201301, India.
Tel: +91 120 4341 818. Fax: +91 120 4324 106 Contact Person: Mr. Hltesh Kumar Jain, Company Secretary
Email: ipo@tv18online.com. Website: www.ibnlive.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 4,200,000 EQUITY SHARES OF RS. 10 EACH ("EQUITY SHARES") FOR CASH AT A PRICE OF RS. 250 PER EQUITY SHARE OF GLOBAL BROADCAST NEWS LIMITED ("GBN", "THE COMPANY" OR "THE ISSUER") AGGREGATING RS. 105.00 CRORES (THE "ISSUE"). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 4,000,000 EQUITY SHARES OF RS. 10 EACH AGGREGATING IRS. 100.00 CRORES ("THE NET ISSUE") AND A RESERVATION OF 200,000 EOUITY SHARES OF RS. 10 EACH FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES AGGREGGATING RS. 5.00 CRORES (AS DEFINED HEREIN) (THE "EMPLOYEE RESERVATION PORTION"), AT THE ISSUE PRICE. THE ISSUE SHALL CONSTITUTE 15.71 % OF THE FULLY DILUTED POST-ISSUE CAPITAL OF GLOBAL BROADCAST NEWS LIMITED.

THE FACE VALUE OF EQUITY SHARE IS RS. 10/- EACH. THE ISSUE PRICE OF RS 250/- EACH IS 25 TIMES OF THE FACE VALUE
The Book Running Lead Managers are ICICI Securities Limited and Kotak Mahindra Capital Company Limited. The Co-Book Running Lead Managers are JM Morgan Stanley Private Limited and IL&FS Investsmart Limited. The Equity Shares of the Company are proposed to be listed on The Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ('NSE°) and trading Is expected to start on or around February 8, 2007.

In terms of Rule 19(2)(b) of the SCRR (as defined below), this being an Issue for less than 25% of the post-Issue capital, the Issue Is being made through the 100% Book Building Prooess wherein at least 60% of the Net Issue shall be Allotted on a proportionate basis to QIB Bidders, out of which 5% of the QIB Portion 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 a proportionate basis to all QIB Bidders, Including Mutual Funds, subject to valid Bits being received at or above Issue price If at least 60% of the Net Issue cannot be Allotted to QIB Bidders, then the entire application money will be refunded forthwith. Further, up to 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-institutional Bidders and up to 30% 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. In addition, In accordance with Rule 19(2)(b) of the SCRR, a minimum of two million securities are being offered to the public and the size of the Net Issue shall aggregate to at least Rs.100.00 crores. The Company has not opted for grading of the issue.

The Issue received 250,673 applications for 208,932,955 Equity Shares resulting In 49.7459 times subscription. The details of the applications received in the Issue from QIBs, Non Institutional Bidders, Retail Individual Bidders and Eligible Employsees (Before technical rejections) are as under:

Final Demand
A summary of the final demand at various price levels as per the electronic book Is given below:

The Basis of Allocation was finlized in consultation with the Bombay Stock Exchange ("BSE") ) on Jaruary 31, 2007. The IPO Committee of Directors of the Company at its meeting held on February 1, 2007 approved the Basis of Allocation of Equity Shares in the Issue and has allotted equity Shares to various successful applicants.

A) Allocation to Non Institutional Bidders:
This category (net of technical rejections) was over subscribed 159.248 times. The total number of shares allotted in this category Is 400,000 Equity Shares. The category wise details of the Basis of Allocation in this category are as under (Sample):

B) Allocation to Retall Individual Bidders:

This category (net of technical rejections) was over subscribed 45.7160 times. The total number of shares allotted In this category is 1,200,000 Equity Shares. The category wise details of the Basis of Allocation in this category are as under.

C) Allocation to Eligible Employees

This category (net of technical rejections) was over subscribed 3.3783 times. The total number of shares allotted in this category is 200,000 Equity Shares. The category wise details of the Basis of Allocation In this category are as under (Sample):

D) Allocation to Qualified Institutional Buyers:

The Refund Orders due to applicants will be dispatched to the address of the investors as registered with the depositories on February 2, 2007. 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 Equity Shares allotted to successful applicants are being Credited to their beneficiary accounts subject to validation of the account details with the depositories concerned on February 1, 2007 listing applications will be filed with the BSE and NSE on February 2, 2007 and the Company is taking steps to get the Equity Sham admitted for trading on the BSE and NSE within seven working days from the date of approval of the Basis of Allocation.

Investors Please Note:

The details of allocation made would be hosted on the website of the Registrar to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com
Further correspondence in respect of allotment of Equity Shares pertaining to the Issue may be addressed to the Registrar to the Issue, Intime Spectrum Registry Limited, quoting ful 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, Place where the bid was submitted and payment details at the address given below:

Intime Spectrum Registry Ltd.,
C-13, Pannalal Silk Mills Compound, L.B.S. Road, Bhandup West,
Mumbai - 400 078, Tel.: (022) 2596 0320 Fax: (022) 2596 0329,
E-mail: gbn-ipo@intimespectrum.com Contact Person: Mr. Salim Shaikh

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 GLOBAL BROADCAST NEWS LIMITED.