Hathway Cable IPO Basis of Allotment

HATHWAY CABLE & DATACOM LIMITED

Our company was origanally incorporated in Mumbai on August 7, 1959 as Chics Display Services Private Limited. For further details regarding changes made to the name of our Company and the registered office of our Company, please refer to page l02 of the Section titled "History and Certain Corporate Matters" of the Prospectus.

Registered and Corporate Office: "Rahejas", 4th floor, Corner of Main Avenue & V.P. Road , Santacruz (West) Mumbai-400 054 , Mharashtra, India Tel: (91 22) 2600 1306/08/09/10; Fax: (91 22) 2600 1307; Website: www.hathway.com; Email: info@hathway.net. Company Secretary and Compliance Officer: Mr. Milind Karnik;
Tel: (91 22 )2600 1306; Fax: (91 22) 2600 1307; E-mail: investorgrievance@hathway.net

BASIS OF ALLOTMENT

Pursuant to Rule 19(2) (b)of the Securities Contracts (Regulation) Rules, 1957 (the "SCRR"), this being an Issue for less than 25% of the post-Issue capital, the Issue is being made through the 100% Book Building Process wherein at least 60% of the Issue shall be allocated to Qualified Institutional Buyers ("QIBs") on a proportionate basis out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Our Company may allocate up to 30% of the QIB Portion to the Anchor Investors on a discretionary basis. The remaining QIB portion shall be available for allocation on a proportionate basis to QIBs including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. If at least 60% of the Issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, not less than 10% of the Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 30% 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 Company has allocated 49,95,000 Equity Shares of the QIB Portion to Anchor Investors on a discretionary basis at Rs 240 in accordance with the SEBI ICDR Regulations.

The Issue received 19,451 applications for 3,53,87,250 equity shares resulting in 1.34 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers. Non-Institutional and Retail Individual Bidders and Anchor Investors 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 bid prices is as under:

The Basis of Allocation was finalised in consultation with the Designated Stock Exchange, being the National Stock Exchange of India Limited ("NSE") on February 19, 2010.

A. Allocation to Retail Individual Bidders (After Technical Rejections) Includes ASBA applications
The Basis of Allocation to the Retail Individual Bidders, who have Bid at Cut-off Price or at the Issue Price of Rs. 240/- per Equity Share, was finalised in consultation with the NSE. The category was under subscribed 0.22 times. As per the Red Herring Prospectus, the unsubscribed portion of Retail individual Bidders portion was met with the spill over from Non Institutional Bidders category (9,30,718 equity shares), QIB category (55,84,307 equity shares) and additional spill over from Non Institutional Bidders category (1,125 equity shares) due to additional withdrawal. The total number of shares allotted in this category is 18,08,850 Equity Shares to 19,024 successful applicants. The category-wise details of the Basis of Allocation are as under:

B. Allocation to Non Institutional Bidders (After Technical Rejections) Includes ASBA applications
The Basis of Allocation to Ihe Non Institutional Bidders, who have Bid at the Issue Price of Rs. 240/- per Equity Share, was finalised in consultation with NSE. The category was over subscribed 2.74 times. As per the Red Herring Prospectus, the spill over portion to Retail Individual Bidders portion was 9,30,718 equity shares, spill over to Retail Individual Bidders portion due to additional withdrawal was 1,125 equity shares and spill over from Other QIB and Mutual Fund category was 5,24,382 equity shares. The total number of shares allotted in this category is 42,31,225 Equity Shares to 69 successful applicants. The category-wise details of the Basis of Allocation are (Sample) under

C. Allocation to QIBs (After Technical Rejections)
Allocation to QIBs has been done on a proportionate basis in consultation with NSE. As per theSEBl regulations, Mutual Funds were initially allotted 5% of the quantum of shares available (8,61,965), including spill over from Retail Individual Bidders portion to the extent of 2,79,215 Equity Shares and other QIBs were allotted the remaining available shares (1,58,52,960) on proportionate basis, including Spill over from Retail Individual Bidders portion to the extent of 53,05,092 Equity Shares, was allotted to other QIBs on proportionate basis. The unsubscribed portion of other QIB and Mutual Fund category is spill over to Non Institutional Bidders category (5,24,382 equity shares)

D. Allocation to Anchor Investors
Allocation to Anchor Investors has been done on a discretionary basis in consultation with the GCs and the BRLM. As per the SEBI regulations. 30% of QIB Reservation (4,99,5000 Equity Shares) was allotted to Anchor Investors (4,99,5000 Equity Shares).

The IPO Committee of the company at its meeting held on February 19, 2010 has approved the Basis of Allocation of shares of the Issue and has allotted the shares to various successful applicants.

The CAN and allotment advice and notices will be dispatched to the address of the investors as registered with the depositones. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been overprinted with the Bank Account details as registered, if any, with the depositones. 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 Bombay Stock Exchange Limited and the National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

Note: All capitalised terms used and not defined herein shall have the respective meaning assigned to them in the prospectus dated February 17, 2010 ("Prospectus")

INVESTORS PLEASE NOTE

This details of the allocation made would be hosted on the website of Registrar to the Issue, Link Intime India Private Limited at http://www.linkintime.co.in

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:

Link Intime India Private Limited
C -13, Pannalal Silk Mills Compound, L.B.S Marg, Bhandup (West), Mumbai - 400 078
Email: hathway.ipo@linkintime.co.in

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 HATHWAY CABLE & DATACOM LIMITED.