HUDCO IPO Basis of Allotment

Housing and Urban Development Corporation Limited

Our Company was incorporated 31 New Delhi as 'The Housing and Urban Development Finance Corporation Private Limited' on April 25, 1970, as a private limited company under the Companies Ad, 1956 and was granted a certificate of incarporation by the then Registrar of Companies, Delhi. Subsequently, the name of our Company was changed to its present name, 'Housing and Urban Development Corporation Limited' and a fresh certificate of incorporation dated July 9. 1974. was issued by the then Registrar of Companies. Delhi &. Haryana. Our Company was notified as a public financial instilution under Section 4A of the Companes Act, 1956 on December 9,1996, by the Department of Company Affaire, Ministry of Finance, Government of India. The National Housing Bank issued a certificate of registration to our Company on July 31,2001, permitting us to carry on the business of a housing finance instilution, For further details, of changes in the name and registered office of our Company, see 'History and Certain Corporate Matters' on page 143 of the Prospectus dated May 12,2017 ('Prospectus')

Registered and Corporate Office; HUDCO Bhawan, India Habitat Centre, Lodhi Road. New Delhi 110 003. India; Tel; +91 11 2464 9610-27; Fax: +91 11 2464 8427; Contact Person; Harish Kumar Sharma Company Secretary and Compliance Officer; Tel: +91 11 2464 6899; Fax: +91 11 2461 5534; E-mail; cswhudco@hudco.org; Website; www.hudco.org; Corporate Identity Number: U74899DL1970GOI005276

BASIS OF ALLOTMENT

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 May 19,2017,

INITIAL PUBLIC OFFERING OF 204,058747 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ('EQUITY SHARES') OF HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED (OUR 'COMPANY'' OR THE 'ISSUER') THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION: GOVERNMENT OF INDIA (THE'SELLING SHAREHOLDER''). FOR CASH AT A PRICE OF RS 60* PER EQUITY SHARE (THE 'OFFER PRICE'), AGGREGATING TO RS 12097.77 MILLION (THE 'OFFER'), THE OFFER COMPRISES A NET OFFER OF 200,190,000 EQUITY SHARES AND AN EMPLOYEE RESERVATION PORTION OF 3,608,747 EQUITY SHARES. THE OFFER AND THE NET OFFER SHALL CONSTITUTE 10.19% AND 10%, RESPECTIVELY OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

*A discount of Rs 2,0 on the Offer Price has been offered to Retail Individual Bidders Bidding in the Retail Portion (''Retail Discount') and to Eligible Employees Bidding in the Employee Reservation Portion ('Employee Discount').

THE OFFER PRICE :RS 60 PER EQUITY SHARE OF FACE VALUE OF RS 10 EACH
THE OFFER PRICE IS 6 TIMES OF THE FACE VALUE

Risks to Investors:

i The four Book Running Lead Managers associated with the Offer have handled 29 public offers In the past 3 years, out of which 7 offers closed below the offer price on listing date.

ii. There are no listed peers of our Company,

iii The average cost of acquisition per Equity Share by our Promoter is Rs 10 and the Offer Price is significantly higher at Rs 60..

iv. The weighted average return on Net Worth for Fiscals 2016,2015 and 2014 on consolidated basis is 9.9% and on a standalone basis is 9.9%.

BID/OFFER PROGRAMME;
BID/OFFER OPENED ON MAY 8, 2017 | BID/OFFER CLOSED ON MAY 11, 2017*

'Bids were not accepted on May 10,2017 being a public holiday,

The Offer is 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 has been offered to the public. The Offer is made through the Book Buliding 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 has been made available for allocation on a proportionate basis to Qualified Institutional Buyers ('QIB Portion'). Such number of Offered Shares representing 5% of the QIB Portion have been made available for allocation on a proportionale basis to Mutual Funds only. The remainder of the QlB Portion has been made 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. Further, not, less than 15% of the Net Offer has been made available for allocation on a proportionate basis to Non-lnstitutional Bidders and not less than 35% of the Net Offer has. been made 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, 3,868,747 Eguriy Shares have been made available for alocation on a proportionate basis to the Eligible Employees Bidding in the Employee Reservation Portion, subjects valid Bids being received from them at or above the Offer Price. All Bidders participated in the Offer mandatorily through the AEBA process by providing the details of their respective ASBA Accounts in which the corresponding Bid Amount was blocked by the SCSBs. For details, see'Offer Procedure' on page 553 of the Prospectus.

The Offer received 1951480 Applications for 16163167600 Equity Shares (after recategorization and before technical rejections) resulting in 79 31 times subscription. The details of the Applications received in the Offer from various categories are as under; (after recategorization and before technical rejections)

Final Demand

A summary of the final demand as per the BSE and the NSE as on the Bid/Offer Closing Date at different Bid prices is as under:

The Basis of Allotment was- finalized in consultation with the Designated Stock Exchange, being BSE on May 17.2017.

A. Allotment to Retail Individual Investors (After Technical Rejections)

The Bas.s of Allotment to the Retail Individual Investors, who have Bid at Cut-off Price or at the Offer Price of Rs 60 per Equity Share was finalized in corsultation with BSE. The category has been subscribed to the extent of 10.44 times. The total number of Equity Shares Allotted in this category is 70637262 Equity Shares to 353186 successful applicants. The category-wise details of the Basis Of Allotment are as under.

Additional 1 share allotted to Sr. No. 2 to Sr. No. 17 in the ratio of 1.5365

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

The Basis of Allotment to the Non-lnstitutional Investors, who have Bid at the Offer Price of  Rs 60 per Equity Share, was finalized in consultation with the BSE. This category has been subscribed to the extent of 330.54 times. The total number of Equity Shares Allotted in this category is 30273113 Equity Shares to 1965 successful applicants.

The categary-wisedetails of the Basis of Allotment are as under (Sample)

C. Allotment to QIBs (AfterTechnical Rejections)

The Basis of Allotment to QlBs who have Bid at the Offer Price of Rs 60 per Equity Share has been done on a proportionate basis in consultation with the BSE This category has been subscribed to the extent of 55.18 times of the QIB Portion. As per the SEBI ICDR Regulations, Mutual Funds were Allocated 5% of the Equity Shares of QIB Portion available i.e. 5045519 Equity Shares spilled and other QIBs, including Mutual Funds, were Allocated the remaining available 95864853 on proportionate basis. The total number of Equity Shares allotted in the QIB calegory is 100910372 Equity Shares, which were allotted to 222 successfull Applicants. The category-wise details of tha Basis of Allotment are as under:

D. Allotment to Eligible Employees (After Technical Rejections.)

The Basis of Allotment to the Eligible Employees, who have Bid at the Offer Price of   Rs 60 per Equity Share, was finalized in consultation with the BSE. This Employee Reservation Portion has been subscribed to the extent of 0.61 times. The total number of Equily Shares Allotted in this category is 2238000 Equity Shares to 522 successful Eligible Employees.

The category-wise details of the Basis of Allotment are as under (sample):

The under subscribed portion of 16,30.747 Equity Shares in the Employees Reservation Portion category has been added to the Net Offer. The said under subscribed Equity Shares were allocated to QIB. Non Institutional Investors and Retail Individual Investors in the ratio of 50:15:35.

The Board of Directors of the Company at its meeting held on May 17.2017, has approved the Basis of Allotment of the Equity Share approved by the Designated Stock Exchange, being BSE and Allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum-Refund Intimations are being dispatched to the address of the investors as registered with the depositories. Further, instructions to the Self Certified Syndicate Banks for unblocking of funds and transfer to the Public Offer Account, as applicable have been issued on May 18.2017. The Equity Shares Allotted to the successful Applicants have been credited on May 18,2017 to their beneficiary accounts subject to validation of the account details wilh the depositories concerned. In case the unblocking of funds or credit of shares is not received within ten days, investors may contact the Registrar to the Offer at the address given below. Our Company is taking steps for completion of the necessary formalities to get the Equity Shares admitted for trading on the BSE and the NSE within six Working Days from the Bid/ Offer Closing Date.

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

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Issue, Alankit Assignments Limited at www.alankit.com

All future correspondence in this regard may kindly be addressed to the Registrartrar the Offer quoting full name of the First/ Sole applicant Serial number of the ASBA form. number of Equily Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

Alankit Assignments Limited
205-206. Anarkali Complex. Jhandewalan Extension, New Delhi 110 055 Delhi. India.
Tel:+91 11 4254 1234; Fax;+9111 4154 3474; E-mail ria@alankit.com; Investor grievance E-mail-: hudco_igr@alankit.com;
Website: www.alankit.com; Contact Parson: Pankaj Goenka/Bojimonkh; SEBI Registration No.: INR000002532