March 16, 2018 - March 20, 2018

Hindustan Aeronautics IPO Basis of Allotment

HINDUSTAN AERONAUTICS LIMITED

Our Company was incorporated on August 16,1963 as Aeronautics India Limited, a private limited company under the Companies Act, 1956. Subsequently, Hindustan Aircraft Limited, a company incorporated on December 23, 1940 under the Companies Act, 1913 was merged with our Company, pursuant to the Aircraft Companies Amalgamation Order dated September 28,1964 passed by the Company Law Board. The name of our Company was changed to Hindustan Aeronautics Limited, by a certificate of change of name issued by the Registrar of Companies, Maharashtra dated December 5,1964 with effect from October 1, 1964. The status of our Company was changed to public company by a special resolution of the members of our Company passed at the Extra Ordinary General Meeting held on July 10,1995. For further details relating to incorporation, corporate structure, change in registered office of our Company, please refer to the chapter 'History and Certain Corporate Matters' beginning on page 171 of the Prospectus dated March 21,2018 ('Prospectus').

Registered and Corporate Office: 15/1 Cubbon Road, Bengaluru 560 001, Karnataka, India; Tel No: +91 (80) 2232 0001; Fax No: +91 (80) 2232 0758
Company Secretary and Compliance Officer: Mr. G. V. Sesha Reddy, Company Secretary and Compliance Officer; Tel No: +91 (80) 2232 0001; Fax No: +91 (80) 2232 0758;
E-mail: investors@hal-india.com ; Website: www.hal-india.com
Corporate Identity Number: U35301KA1963GOI001622

PROMOTER OF OUR COMPANY: THE PRESIDENT OF INDIA, ACTING THROUGH THE DEPARTMENT OF DEFENCE PRODUCTION, MINISTRY OF DEFENCE.

Our Company has filed the Prospectus dated March 21, 2018 with the RoC and the Equity Shares are proposed to be listed on the BSE Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading will commence on March 28, 2018.

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 34,107,525 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ('EQUITY SHARES') OF HINDUSTAN AERONAUTICS LIMITED (OUR 'COMPANY' OR THE 'ISSUER') THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE DEPARTMENT OF DEFENCE PRODUCTION, MINISTRY OF DEFENCE, GOVERNMENT OF INDIA (THE 'SELLING SHAREHOLDER'), FOR CASH AT A PRICE OF RS 1,215 PER EQUITY SHARE (THE 'OFFER PRICE'), AGGREGATING TO RS 41,131.33 MILLION (THE 'OFFER') THE OFFER SHALL CONSTITUTE 10.20% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY. THE OFFER COMPRISES OF A NET OFFER OF 33,438,750 EQUITY SHARES AND AN EMPLOYEE RESERVATION PORTION OF UP TO 668,775 EQUITY SHARES. THE OFFER AND THE NET OFFER SHALL CONSTITUTE 10.20% AND 10%, RESPECTIVELY OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE FACE VALUE OF THE EQUITY SHARES IS RS 10 EACH. THE OFFER PRICE IS 121.5 TIMES THE FACE VALUE OF THE EQUITY SHARES.

*A discount of Rs 25 per Equtiy Share on the OfferPrice was offered to Retail Individual Bidders ('Retail Discount') and to Eligible Employees Bidding in the Employee Reservation Portion ('Employee Discount').

Offer Price: Rs 1,215 per Equity Share of face value of Rs 10 each | The Offer Price is 121.5 times the face value.
Retail Discount and Employee Discount: Rs 25 per Equity Share on Offer Price.

RISKS TO INVESTORS

(i) The two Book Running Lead Managers associated with the Issue have handled 44 public issues in the past 3 years, out of which 14 issues closed below the issue/offer price on listing date.
(ii) There are no listed companies in India that engage in a business similar to that of the Company. Hence, industry comparison in relation to the Company is not applicable.
(iii) The average cost of acquisition of Equity Shares by our Promoter is Rs (152) per Equity Share (after considering the impact of buy-back of Equity Shares in March, 2016 and November, 2017). The Offer Price at the lower end of the Price Band was Rs 1,215 per Equity Share and at the upper end of the Price Band was Rs 1,240 per share.

BID/OFFER PROGRAMME

OPENED ON MARCH 16, 2018 | CLOSED ON MARCH 20, 2018

The Offer was made in terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended ('SCRR'),wherein at least 10% of the post-Offer paid-up Equity Share capital of our Company was offered to the public. The Offer was made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended ('SEBI ICDR Regulations'), wherein 50% of the Net Offer was available for allocation on a proportionate basis to Qualified Institutional Buyers ('QIB Portion'). Such number of Offered Shares representing 5% of the QIB Portion was available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion was available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Offered Shares was made available for allocation in the Mutual Fund Portion will be added to the remained QIB Portion for proportionate allocation to QIBs. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer was available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, up to 668,775 additional Equity Shares was offered for allocation and Allotment on a proportionate basis to the Eligible Employees Bidding in the Employee Reservation Portion, conditional upon valid Bids being received from them at or above the Offer Price. All Bidders were required to participate in the Offer mandatorily through the Applications Supported by Blocked Amount ('ASBA') process by providing the details of their respective ASBA Accounts in which the corresponding Bid Amount was blocked by the SCSBs. For details, see 'OfferProcedure' on page 705 of the Prospectus.

The Offer received 1,99,916 applications for 33,642,996 Equity Shares (prior to technical rejections) resulting in 0.99 times subscription. The details of the applications received in the Offer from various categories are as under (prior to technical rejections):

SI. No.	Category	No. of Applications	No. of Equity Shares applied	Shares Reserved as per Prospectus	No.of times Subscribed	Amount(Rs)
A	Retail Individual Bidders	197,209	4,364,268	11,703,563	0.37	5,306,312,366.00
B	Non Institutional Bidders	259	178,188	5,015,813	0.04	220,713,696.00
C	Employee Investors	2,431	86,556	668,775	0.13	105,486,666.00
D	Qualified Institutional Bidders	17	29,013,984	16,719,374	1.74	35,966,465,520.00
	Total	199,916	33,642,996	34,107,525	0.99	41,598,978,248.00

Final Demand
A summary of the final demand as at different Bid prices is as under:

SI.No.	BID PRICE	BIDS QUANTITY	(%) TO TOTAL	Cumulative Total	% Cumulative Total
1	1215	379,968	1.12	379,968	1.12
2	1216	2,640	0.01	382,608	1.13
3	1217	1,380	0.00	383,988	1.13
4	1218	840	0.00	384,828	1.14
5	1219	408	0.00	385,236	1.14
6	1220	17,352	0.05	402,588	1.19
7	1221	600	0.00	403,188	1,19
8	1222	432	0.00	403,620	1.19
9	1223	408	0.00	404,028	1.19
10	1224	396	0.00	404,424	1.19
11	1225	261,012	0.77	665,436	1.97
12	1226	192	0.00	665,628	1.97
13	1227	864	0.00	666,492	1.97
14	1228	1,656	0.00	668,148	1.97
15	1229	168	0.00	668,316	1.97
16	1230	18,924	0.06	687,240	2.03
17	1231	708	0.00	687,948	2.03
18	1232	468	0.00	688,416	2.03
19	1233	720	0.00	689,136	2.04
20	1234	312	0.00	689,448	2.04
21	1235	9,012	0.03	698,460	2.06
22	1236	840	0.00	699,300	2.07
23	1237	804	0.00	700,104	2.07
24	1238	4,620	0.01	704,724	2.08
25	1239	5,088	0.02	709,812	2.10
26	1240	29,278,428	86.49	29,988,240	88.59
27	CUTOFF	3,863,676	11.41	33,851,916	100.00
	TOTAL	33,851,916	100.00

The Basis Of Allotment was finalized in consultation with the Designated Stock Exchange, being BSEon March 23,2018.

A. Allotment to Retail Individual Investors (AfterTechnical Rejections)

The Basis of Allotment to the Retail Individual Investors, who have bid at the Cut-Off Price or at or above the Offer Price of Rs 1,215/-per Equity Share (retail discount of Rs 25/- per Equity Shares has been offered to the Retail Individual Investors), was finalized in consultation with the BSE. This category has been subscribed to the extent of 0.358429 times. The total number of Equity Shares Allotted in Retail Portion is 4,269,012 Equity Shares to193,054successful Retail Individual Investors. The category-wise details of the Basis of Allotment are as under:

Category	No. of Applications Received	% of Total	Total No. of Equity Shares applied	% to Total	No. of Equity Shares allotted per applicant	Ratio	Total No. of Equity Shares allotted
12	150,997	78.21	1,811,964	42.44	12	1:1	1,811,964
24	17,953	9.30	430,872	10.09	24	1:1	430,872
36	6,009	3.11	216,324	5.07	36	1:1	216,324
48	3,636	1.88	174,528	4.09	48	1:1	174,528
60	2,859	1.48	171,540	4 02	60	1:1	171,540
72	1,324	0.69	95,328	2.23	72	1:1	95,328
84	1,305	0.68	109,620	2.57	84	1:1	109,620
96	962	0.50	92,352	2.16	96	1:1	92,352
108	548	0.28	59,184	1.39	108	1:1	59,184
120	1,342	0.70	161,040	3.77	120	1:1	161,040
132	134	0.07	17,688	0.41	132	1:1	17,688
144	447	0.23	64,368	1.51	144	1:1	64,368
156	5,515	2.86	860,340	20.15	156	1:1	860,340
168	23	0.01	3,864	0.09	168	1:1	3,864
TOTAL	193,054	100.00	4,269,012	100.00			4,269,012

Unsubscribed portion of 7,641,314 Equity shares spilled over to QlBCategory

B. Allotment to Non-Institutional Investors (After Technical Rejections)

The Basis of Allotment to the Non-Institutional Investors, who have bid at the Offer Price of Rs 1,215/- per Equity Share or above, was finalized in consultation with the BSE. The Non-Institutional Portion has been subscribed to the extent of 0.033559 times. The total number of Equity Shares Allotted in this category is 171,300 Equity Shares to 252 successful Non-Institutional Investors.

The category-wise details of the Basis of Allotmentare as under:

Category	No. of Applications Received	% of Total	Total No. of Equity Shares applied	% to Total	No. of Equity Shares allotted per applicant	Ratio	Total No. of Equity Shares allotted
168	63	25.00	10,584	6.18	168	1:1	10,584
180	21	8.33	3,780	2.21	180	1:1	3,780
192	6	2.38	1,152	0.67	192	1:1	1,152
204	8	3.17	1,632	0.95	204	1:1	1,632
216	5	1.98	1,080	0.63	216	1:1	1,080
240	27	10.71	6,480	3.78	240	1:1	6,480
252	2	0.79	504	0.29	252	1:1	504
288	1	0.40	288	0.17	288	1:1	288
300	6	2.38	1,800	1.05	300	1:1	1,800
324	3	1.19	972	0.57	324	1:1	972
360	7	2.78	2,520	1.47	360	1:1	2,520
372	1	0.40	372	0.22	372	1:1	372
396	16	6.35	6,336	3.70	396	1:1	6,336
408	5	1.98	2,040	1.19	408	1:1	2,040
420	5	1.98	2,100	1.23	420.	.1:1	2,100
468	1	0.40	468	0.27	468	1:1	468
480	8	3.17	3,840	2.24	480	1:1	3,840
492	2	0.79	984	0.57	492	1:1	984

Category	No. of Applications Received	% of Total	Total No. of Equity Shares applied	% to Total	No. of Equity Shares allotted per applicant	Ratio	Total No. of Equity Shares allotted
516	1	0.40	516	0.30	516	1:1	516
540	1	0.40	540	0.32	540	1:1	540
552	1	0.40	552	0.32	552	1:1	552
600	9	3.57	5,400	3.15	600	1:1	5,400
636	1	0.40	636	0.37	636	1:1	636
648	1	040	648	0.38	648	1:1	648
720	1	0.40	720	0.42	720	1:1	720
756	1	0.40	756	0.44	756	1:1	756
804	10	3.97	8,040	4.69	804	1:1	8,040
816	1	0.40	816	0.48	816	1:1	816
840	2	0.79	1,680	0.98	840	1:1	1,680
852	1	0.40	852	0.50	852	1:1	852
900	1	0.40	900	0.53	900	1:1	900
924	1	0.40	924	0.54	924	1:1	924
960	3	1.19	2,880	1.68	960	1:1	2,880
996	2	0.79	1,992	1.16	996	1:1	1,992
1008	3	1.19	3,024	1.77	1008	1:1	3,024
1020	1	0.40	1,020	0.60	1020	1:1	1,020
1200	3	1.19	3,600	2.10	1200	1:1	3,600
1500	2	0.79	3,000	1.75	1500	1:1	3,000
1608	2	0.79	3,216	1.88	1608	1:1	3,216
1920	1	0.40	1,920	1.12	1920	1:1	1,920
2016	1	0.40	2,016	1.18	2016	1:1	2,016
2100	1	0.40	2,100	1.23	2100	1:1	2,100
2352	1	0.40	2,352	1.37	2352	1:1	2,352
2412	2	0.79	4,824	2.82	2412	1:1	4,824
2496	1	0.40	2,496	1.46	2496	1:1	2,496
3000	1	0.40	3,000	1.75	3000	1:1	3,000
3216	2	0.79	6,432	3.75	3216	1:1	6,432
3996	1	0.40	3,996	2.33	3996	1:1	3,996
4080	1	0.40	4,080	2.38	4080	1:1	4,080
4992	1	0.40	4,992	2.91	4992	1:1	4,992
6048	1	0.40	6,048	3.53	6048	1:1	6,048
7200	2	0.79	14,400	8.41	7200	1:1	14,400
24000	1	0.40	24,000	14.01	24000	1:1	24,000
TOTAL	252	100.00	171,300	100.00			171,300

Unsubscnbed portion of 4,933,126 Equity shares spilled over to QIB Category

C. Allotment to Eligible Employees (After Technical Rejections)

The Basis of Allotment to the Eligible Employees, who have bid at or above the Offer Price of Rs 1,215/- per Equity Share (Employee discount of Rs 25/-per Equity Share has been offered to the Eligible Employees), was finalized in consultation with the BSE. The Eligible Employees Portion has been subscribed to the extent of 0.116667 times. The total number of Equity Shares Allotted in this category is 78,024 Equity Shares to 2,190 successful Bidders. The category-wise details of the Basis of Allotment are as under:

Category	No. of Applications Received	% of Total	Total No. of Equity Shares applied	% to Total	No. of Equity Shares allotted per applicant	Ratio	Total No. of Equity Shares allotted
12	943	43.06	11,316	14.50	12	1:1	11,316
24	574	26.21	13,776	17.66	24	1:1	13,776
36	205	9.36	7.380	9.46	36	1:1	7,380
48	136	6.21	6,528	8.37	48	1:1	6,528
60	79	3.61	4,740	6.08	60	1:1	4,740
72	33	1.51	2,376	3.05	72	1:1	2,376
84	41	1.87	3,444	4.41	84	1:1	3,444
96	37	1.69	3.552	4.55	96	1:1	3,552
108	19	0.87	2,052	2.63	108	1:1	2,052
120	32	1.46	3.840	4.92	120	1:1	3,840
144	9	0.41	1,296	1.66	144	1:1	1,296
156	41	1.87	6.396	8.20	156	1:1	6,396
168	7	0.32	1.176	1.51	168	1:1	1,176
180	4	0.18	720	0.92	180	1:1	720
192	1	0.05	192	0.25	192	1:1	192
204	2	0.09	408	0.52	204	1:1	408
216	2	0.09	432	0.55	216	1:1	432
240	5	0.23	1,200	1.54	240	1:1	1,200
264	1	0.05	264	0.34	264	1:1	264
276	2	0.09	55?	0.71	276	1:1	552
288	1	0.05	288	0.37	288	1:1	288
300	1	0.05	300	0.38	300	1:1	300
324	2	0.09	648	0.83	324	1:1	648
360	2	0.09	720	0.92	360	1:1	720
396	5	0.23	1,980	2.54	396	1:1	1,980
408	6	0.27	2,448	3.14	408	1:1	2,448
TOTAL	2,190	100.00	78,024	100.00			78,024

Unsubscribed portion of 590,751 Equity shares spilled over to QIB Category

D. Allotment to QIBs (After Technical Rejections)

Allotment to QIBs, who have Bid at the Offer Price of Rs 1,215/- per Equity Share or above, has been done on a proportionate basis in consultation with the BSE. This category has been subscribed to the extent of 1.74 times of QIB Portion.As per the SEBI ICDR Regulations, Mutual Funds were Allotted 5 % of the Equity Shares of QIB Portion available i.e. 10,72,548 Equity Shares (including spilled over) and other QIBs, including Mutual Funds were Allotted the remaining available Equity Shares i.e. 27,941,436 Equity Shares (including spilled over) on a proportionate basis. The total number of Equity Shares Allotted in the QIB Portion is 29,013,984 Equity Shares, which were allotted to 17 successful QIB Bidders. The category wise details of the Basis of Allotment are as under:

Category	Fls/Banks	Fll	MFs	ICs	NBFC	Others	Total
QIB	2,711,160	-	1,072,548	25,230,276	-	-	\| 29,013,984

Unsubscribed portion of Retail, HNI and Employee Category have been added to QIB Portion to the extent of its subscnption and balance 575,205 were not allotted to any categories, since the overall Offer was undersubscribed.

The Board of Directors of the Company on March 24,2018 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum-intimations and/or notices are being dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Offer Account have been issued on March 23,2018 and payment to non-Syndicate brokers have been issued on March 26, 2018. The Equity Shares Allotted to the successful Allottees have been uploaded on March 26, 2018 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. In case the unblocking of funds or credit of equity shares is not received within six working days, investors may contact the Registrar to the Offer at the address given below. The Company has filed the Listing applications with BSE and NSE on March 26, 2018. The Company has received listing and trading approvals from BSE and NSE and the trading will commence on March 28, 2018. All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

INVESTORS PLEASE NOTE

The details of the allotment made have been hosted on the website of the Registrar to the Offer, Karvy Computershare Private Limited at https://karisma.karvy.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the first/sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address of Registrar.

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,Gachibowli, Financial District,
Nanakramguda Hyderabad,Telangana 500032, India
Tel: +91 (40) 67162222, Fax: +91 (40) 2343 1551, Email: hal.ipo@karvy.com
Investor Grievance Email: einward.ris@karvy.com
Website: https://karisma.karvy.com
Contact Person: Mr. M Murali Krishna
SEBI Registration No: INR000000221

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 HINDUSTAN AERONAUTICS LIMITED.

Date: March 27, 2018 Place: Bengaluru	For Hindustan Aeronautics Limited On behalf of Board of Directors Sd/- Company Secretary and Compliance Officer

Hindustan Aeronautics IPO Basis of Allotment FAQs

The IPO allocation is based on the subscription level and the investor category.

Refer to IPO allotment rules and methods for more details.

See the basis of allotment document above to know how the shares are allocated in Hindustan Aeronautics IPO .

The Hindustan Aeronautics IPO basis of allotment (published above) tells you how shares are allocated to you in Hindustan Aeronautics IPO and category wise demand of IPO share.

Visit the Hindustan Aeronautics IPO allotment status page to check the number of shares allocated to your application.

In Hindustan Aeronautics IPO allotment process, the registrar separates valid and invalid applications. The invalid applications with technical errors are rejected and only valid applications at or above the cut-off price are considered for allotment.

For more information, please refer to IPO Allotment Process and Basis of Allotment.

Check the Hindustan Aeronautics IPO basis of allotment document to know how the shares are allocated in Hindustan Aeronautics IPO.

Hindustan Aeronautics IPO Basis of Allotment

Hindustan Aeronautics IPO Basis of Allotment FAQs

How shares are allotted in Hindustan Aeronautics IPO?

What is Hindustan Aeronautics IPO basis of allotment status?

What is Hindustan Aeronautics IPO allotment process?

Read more about Hindustan Aeronautics IPO