HDIL IPO Basis of Allotment

HOUSING DEVELOPMENT AND INFRASTRUCTURE LIMITED

(We were incorporated as Housing Development and Improvement India Private Limited on July 25,1996. Our status was subsequently changed to a public limited company by a special resolution of the members passed at the extraordinary general meeting on January 12,2005. The fresh certificate of incorporation consequent to the change of the name was granted to us on february 3,2005 by the Assistant Registrar of companies, Maharashtra, Mumbai. Our name was further changed to Housing Development and Infrastructure Limited by a special resolution of the members passed at the extraordinary general meeting on August 7,2006. The fresh certificate of incorporation consequent to the change of name was granted on August 29,2006, by the Deputy Registrar of Companies, Maharashtra, Mumbai.)
Regd. Office: 9-101, Dheeraj Arma, Anant Kanekar Marg, Bandra (East), Mumbai 400 051. Maharashtra, India.
Tel: +91-22- 2658 3500, Fax: +91-22- 2658 3535,
Email: compliance.officer@hdil.in. Website: www.hdil.in

BASIS OF ALLOCATION

PUBLIC ISSUE OF 29,700,000 EQUITY SHARES OF Rs. 10 EACH OF HOUSING DEVELOPMENT AND INFRASTRUCTURE LIMITED ('HDIL' OR THE 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF Rs. 500 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 490 PER EQUITY SHARE) AGGREGATING TO Rs. 14,850 MILLION (THE 'ISSUE'). THE ISSUE COMPRISES A RESERVATION OF UP TO 600,000 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE 'EMPLOYEE RESERVATION PORTION') AND AN ISSUE TO THE PUBLIC OF 29,100,000 EQUITY SHARES ('THE NET ISSUE'). THERE WILL ALSO BE A GREEN SHOE OPTION OF UP TO 4,455,000 EQUITY SHARES FOR CASH AT A PRICE,OF RS. 500 PER EQUITY SHARE AGGREGATING TO RS. 2,228 MILLION (THE 'GREEN SHOE OPTION'). THE ISSUE AND THE GREEN SHOE OPTION, IF EXERCISED IN FULL, WILL AGGREGATE TO 34,155,000 EQUITY SHARES AMOUNTING TO RS. 17,078 MILLION. THE NET ISSUE WILL CONSTITUTE 13.86% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY ASSUMING THAT THE GREEN SHOE OPTION IS NOT EXERCISED AND 15.65% ASSUMING THAT THE GREEN SHOE OPTION IS EXERCISED IN FULL.

THE FACE VALUE PER EQUITY SHARE IS RS.10/-

THE ISSUE PRICE PER EQUITY SHARE IS RS. 500/- AND IT IS 50 TIMES OF THE FACE VALUE.
The Issue made through the 100% Book Building Process wherein at least 60% of the net issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (including 5% of the QIB portion that was to specifically be allotted to mutual funds), further, 10% of the net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the net Issue shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.
The Issue received 1,48,844 applications for 19,06,23,174 equity shares resulting in 5.58 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers', Non-Institutional, Retail Individual Investor and Employee categories are as under: (Before technical rejections)

Final Demand
A sample of the final demand at different bid prices is as under:

The Basis of Allocation was finalized In consultation with the Bombay Stock Exchange Limited ('BSE') on 16th July, 2007.

A. Allocation to Employees (After Technical Reactions)
The Basis of Allocation to the Employees, who have bid at cut-off or at and above the Issue Price of Rs.500 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 0.049 times. Hence FULL and FIRM allotments have been made against all valid applications. The total number of shares allotted in this category is 29,568 Equity Shares to 136 successful applicants. The unsubscribed portion of 5,70,432 equity shares has been added to Retail and Non-Institutional categories in the ratio of 50:50.

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at and above the Issue Price of Rs.500 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 1.244 times. The total number of shares allotted In this category is 1,03,51,716 Equity Shares (including 285,216 equity shares spilled over from employees category) to 1,37,687 successful applicants. The category-wise details of the Basis of Allocation (Sample) are as under:

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at cut-off or at and above the Issue Price of Rs.500 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 1.33 times. The total number of shares allotted in this-category is 36,40,716 Equity Shares (including 2,85,216 equity shares spilled over from employee category) to 495 successful applicants. The category-wise details of the Basis of Allocation (Sample) are as under:

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (10,06,650) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (1,91,26,350) on proportionate basis.

The Committee of Directors of the company at it's meeting held at Hyderabad on 17th July, 2007 has approved the basis of allocation of shares and has allotted the shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices (where applicable) have been dispatched to the address of the investors as registered with the depositories. 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 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 the Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrars to the Issue, Karvy Computershare Private Limited at www.karvy.com or http://kcpl.karvy.com
All future correspondence in this regard may kindly be addressed to the Registrars 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:

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

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 SHARE ON LISTING OR THE BUSINESS PROSPECTS OF HOUSING DEVELOPMENT AND INFRASTRUCTURE LIMITED.