Goenka IPO Basis of Allotment

Goenka Diamond and Jewels Limited

Our company was incorporated on November 5, 1990 as 'Goenka Exports Private Limited', a private limited company under the Companies Act, 1956 ('Companies Act').With effect from July 1, 1997, our Company became a 'deemed public company' by virtue of section 43(A) of the Companies Act and ceased to be a private company. Subsequently by a shareholders resolution dated January 29, 2002, our Company became a public company and a fresh certificate of incorporation, in the name of 'Goenka Exports Limited' was issued by the Registrar of Companies , Rajasthan, situated at Jaipur (the 'RoC') on January 30, 2002. The name of our Company was changed to 'Goenka Exports Private Limited' following a special resolution in the extraordinary general meeting held on November 29, 2004 and a fresh certificate of Incorporation was issued by the RoC on December 10, 2004. Our Company changed its name to 'Goenka Diamond and Jewels Private Limited' pursuant to a special resolution at the extraordinary general meeting held on March 21, 2008. A fresh certificate of incorporation was Issued by the RoC on March 27,2008. By a resolution dated April 15, 2008, our Company was converted into a public limited company and Its name was changed to Its present name 'Goenka Diamond and Jewels Limited'. A fresh certificate of incorporation was issued by RoC on May 15,2008 consequent to change of name on conversion to public limited company.

Registered Office: 401, Panchratana. Moti Singhbhomiyon Ka Rasta. Johari Bazar. Jaipur-302003, India. Telephone: + 91 141 2574175; Facsimile: +91 141 2573305 Corporate Office: Premises No. 1305, 13th Floor, Panchratna Building, Mama Parmanand Marg, Opera House, Girgaon Division, Street No. 184, Mumbai - 400 004. India. Telephone: + 91 22 23620222; Facsimile: + 91 22 2367 6020; Contact Person and Compliance Officer: Ms. Hemangi Shailesh Patil; Telephone: + 91 22 23891678; Facsimile: + 91 22 23676020;
Email: cs@goenkadiamonds.com   Website: www.gdjl.co.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 93,71,000* EQUITY SHARES OF FACE VALUE OF RS.10 EACH ('EQUITY SHARES') OF GOENKA DIAMOND AND JEWELS LIMITED ('GDJL', OR THE 'COMPANY', OR THE 'ISSUER') FOR CASH AT A PRICE OF RS. 135 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 125 PER EQUITY SHARE}, AGGREGATING RS. 12,650.85 LAKHS (THE 'ISSUE'). THE ISSUE SHALL CONSTITUTE 29.56% OF THE FULLY DILUTED POST ISSUE PAID UP CAPITAL OF OUR COMPANY.

*As per the Red Herring Prospectus, up to 1,00,00,000 Equity Shares were made available for allocation. However, based on the subscription received, the number of Equity Shares offered in this issue is 93,71,000.

ISSUE PRICE: RS 135 PER EQUITY SHARE
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10
THE ISSUE PRICE IS 13.5 TIMES OF THE FACE VALUE
BID/ISSUE OPENED ON MARCH 23, 2010 AND BID/ISSUE CLOSED ON MARCH 26, 2010

The Issue is being made through the 100% Book Building Process, wherein up to 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers ('QIB') Bidders, out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to all QIB Bidders including Mutual Funds, subject to valid Bids being received from them at or above the 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 from them at or above the Issue Price,
The Issue received 6022 applications for 9445890 Equity Shares resulting in 0.94 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investors categories are as under (Before technical refections)

Final Demand
A summary of the final demand as per the Bombay Stock Exchange Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') as on the Bid/Issue Closing Date at different bids is as detailed hereunder:

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, BSE on April 08, 2010.

A. Allocation to Retail Individual Investors (Including Applications Supported by Blocked Amount ('ASBA'))
(After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or above the Issue Price of Rs.135/-per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 0.48 times and hence allotment was done on full and firm basis to all valid applicants. There were 1,602 applications for 2,50,600 Equity Shares made under ASBA process. Of these 1,574 applications for 2,36,960 Equity Shares were found valid and they were considered for allotment on full and firm basis. The total number of shares allotted in Retail Individual Investor category is 17,02,000 Equity Shares which were allotted to 5,828 successful applicants.

B. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at or above the Issue Price of Rs.135/- per Equity Share or above, was finalized in consultation with BSE. Overall 14 applications for 37,67,040 Equity Shares were considered for allotment on full and firm basis.

C. Allocation to QIBs
The valid demand in QIB segment was for 39,01,960 Equity Shares which is below the quantum reserved for this category.
Hence, full and firm allotment has been made to all valid QIB application forms. The summary of allotment is as under.

The IPO Committee of the Board of Directors of the Company at its Meeting held at Hyderabad on April 08, 2010 has approved the basis of allocation of Equity Shares of the Issue and has accordingly allotted the Equity Shares to the Bidders. The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on or prior to April 09,2010. Further, the Instructions to Self Certified Syndicate Banks have been dispatched on or prior to April 09, 2010. In case the same is not received within 10 days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Account details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants have been credited on or prior to April 09, 2010 to their beneficiary accounts subject to validation of the account details with the depositories concerned.

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, place where the bid was submitted and payment details at the address given below:

TOLL FREE - HELPLINE NUMBER
1-800-3454001

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 GOENKA DIAMOND AND JEWELS LIMITED.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

Goenka Diamond and Jewels Limited is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed the Prospectus with the Registrar of Companies, Rajasthan, Jaipur. The Prospectus is available on the website of Securities and Exchange Board of India (SEBI) at www.sebi.gov.in and the website of the Book Running Lead Manager at www.sbicaps.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled 'Risk Factors' on page x of the Prospectus.