Gravita IPO Basis of Allotment

GRAVITA INDIA LIMITED

Incorporated on 04/08/1992 under the Companies Act, 1956 as 'Weldtech Private Limited' vide Certificate of Incorporation issued by the Registrar of Companies, Rajasthan, Jaipur. The Company changed its name to Gravita India Private Limited w.e.f 02/08/1996. Subsequent on conversion into Public Limited the name was changed to Gravita India Limited vide fresh certificate of Incorporation dated 13/08/1996. The Corporate Identity Number of the Company is U29308RJ1992PLC006870.

Registered Office: 'Saurabh', Chittora Road, Harsulia Mod, Diggi - Malpura, Tehsil - Phagi, Jaipur - 303 904, Rajasthan, India; Tel.: +91-9928070682: Fax : + 91-141-2621491
Corporate Office: 402, Rajputana Tower, A-27 B, Shanti Path, Tilak Nagar, Jaipur - 302 004, Rajasthan, India;
Tel: +91-141-2623266; Fax: +91-141-2621491; Website: www.gravitaindia.com

BASIS OF ALLOTMENT

This Issue is being made in terms of regulation 26(2)(a)(i) and b(i) of SEBI (ICDR) Regulations, 2009, as amended from time to time, where by, at least 50% of the Net offer to public shall be allotted to Qualified Institutional Buyers (QIBs), failing which the full subscription monies shall be refunded. (In case of delay, if any in refund, Gravita India Limited shall pay interest on the application money at the rate of 15% per annum for the period of delay).

The Issue is being made through the 100% Book Building Process wherein at least 50% of the Net offer to the public shall be allocated on a proportionate basis to eligible Qualified Institutional Buyers, 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 eligible Qualified Institutional Buyers, including Mutual Funds, subject to valid Bids being received at or above Issue Price. Further, not more than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more 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 Opened for subscription on November 01,2010 and Closed on November 03,2010. The Issue received 78215 applications for 152079450 equity shares resulting in 42.24 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders, Retail Individual Bidders and Employee categories are as under: (Before technical rejections)

Final Demand
A summary of the final demand as per BSE and NSE as on the Bid/ Issue Closing Date at different bids is as detailed hereunder:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ('BSE') on November, 12,2010.

A. Allotment to Retail Individual Bidders (Including Applications Supported by Blocked Amount ('ASBA')) (After Technical Rejections)
The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs.125/- per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 36.258 times. There were 19145 applications for 9499250 equity shares made under ASBA process. Of these 18787 applications for 9392600 equity shares were found valid and they were considered for allotment on proportionate basis. The total number of equity shares allotted in Retail Individual Bidder category is 1242500 Equity Shares which were allotted to 24850 successful applicants. The category-wise details of the Basis of Allocation are as under:

B. Allotment to Non Institutional Bidders (After Technical Rejections)
The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Issue Price of Rs. 125/- per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 179.695 times and hence allotment was done on proportionate basis to all valid applicants. There were 79 applications for 16709400 equity shares made under ASBA process. Of these 77 applications for 16706800 equity shares were found valid and they were considered for allotment on proportionate basis. The total number of shares allotted in Non Institutional Bidders category is 532500 Equity Shares which were allotted to 129 successful applicants. The sample of the category-wise details of the Basis of Allocation are as under:

C. Allotment to Employees (Including Applications Supported by Blocked Amount ('ASBA')) (After Technical Rejections)
The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs.125/- per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 1.007 times. There were 14 applications for 3850 equity shares made under ASBA process. Of these NIL applications for NIL equity shares were found valid. The total number of shares allotted in Employees category is 50000 Equity Shares which were allotted to 69 successful applicants. The category-wise details of the Basis of Allocation are as under:

D. Allotment to QIBs
The Basis of Allotment to the Qualified Institutional Buyers, who have bid at the Issue price of Rs. 125/- per Equity Share was finalized on proportionate basis. Overall 19 applications for 10714700 Equity Shares were found valid and the quantum of shares allotted to this category is 1775000. Out of these, 7 applications for 4699150 equity shares were received under ASBA Process. The summary of allotment is as under:

The Board of Directors of the Company at its Meeting held at Jaipur, Rajasthan on 13th November, 2010 has approved the basis of allotment of Equity Shares of the Issue and has accordingly allotted the Equity Shares to the Bidders.

The CAN-cum-Ref und Orders and allotment advice and/ or notices are being dispatched to the address of the Bidders, as registered with the depositories on or prior to November 15,2010. Further, the instructions to Self Certified Syndicate Banks have been dispatched/mailed. 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 allotted 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 BSE and NSE on November 16,2010.

These details of the allotment made would be hosted on the website of Registrar to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.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, place where the bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
Unit: Gravita India Limited
Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur, Hyderabad - 500081
Fax: 040-23420814; Email: einward.ris@Karvy.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BETAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF GRAVITA INDIA LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.