Idea Cellular IPO Basis of Allotment

IDEA CELLULAR LIMITED
an Aditya Birla Group Company

(Incorporated as Birla Communications Limited on March 14,1995 under the Companies Act, 1956 and granted a certificate of commencement of business dated August 11,1995. The name of the Company was subsequently changed to Birla AT&T Communications Limited pursuant to a fresh certificate of incorporation dated May 30, 1996. The name was subsequently changed to Birla Tata AT&T Limited pursuant to a fresh certificate of incorporation dated November 6, 2001. The name of the Company was further changed to idea Cellular Limited pursuant to a fresh certificate of incorporation dated May 1, 2002.) Pursuant to a certificate of registration dated October 22,1996 our registered office was transferred from Mumbai to Gandhinagar. (For further details see 'Our History and Corporate Structure' on page 137 of the Prospectus).

Registered Office: Suman Tower, Plot No. 18, Sector-11, Gandhinagar 382011
Tel: +91 79 6671 4000 Fax: + 91 79 2323 2251.
Corporate Office: 11/1 Sharada Center, Off Karve Road, Erandwane, Pune 411004
Tel: +91 98500 03222 Fax: +91 98500 03999, Contact person: A.J.S. Jhala,
Email: shs@ideacellular.com, Website: www.ideacellular.com

BASIS OF ALLOTMENT

Public Issue of 283,333,333 Equity Shares of Rs. 10 each for cash at a price of Rs. 75 aggregating Rs. 21,250 million (hereinafter referred to as the 'Issue'). There Is a reservation of 6,666,666 Equity Shares of Rs. 10 each aggregating Rs. 500 million for the eligible employees of the Company ('Employee Reservation Portion'). The not Issue to the public of 276,686,667 Equity Shares of Rs. 10 aggregating Rs. 20,750 million (hereinafter referred to as the 'Net Issue'). There shall also be a  green shoe option for allocating up to 42,500,000 Equity Shares of Rs. 10 each not exceeding Rs. 3,187.50 million, In excess of the Equity Shares that are Included In the Issue. The Issue with the green shoe option aggregates Rs. 24,437.50 million.
The issue would constitute 10.9% of the fully diluted post issue paid-up equity capital of the Company assuming no exercise of the green shoe option and 12.4% assuming the green shoe option is exercised in full.
ISSUE PRICE: Rs. 75 PER EQUITY SHARE OF FACE VALUE OF Rs. 10 EACH. THE ISSUE PRICE IS 7.5 TIMES OF THE FACE VALUE OF EACH EQUITY SHARE.

In terms of Rule 19(2)(b) of the Securities Contracts Regulation Rules, 1957, as amended from time to time ('SCRR'), with respect to the issue being less than 25% of post issue capital, the issue is made through the 100% Book Building Process wherein at least 60% of the Net Issue to the public shall be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs'). 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 QIBs, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 10% of the Net Issue to the public shall be available for allocation on a proportionate basis to non Institutional bidders and not less than 30% of the Net Issue to the public 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. Further, 6,666,666 Equity Shares shall be available for allocation on a proportionate basis to eligible employees, subject to valid Bids being received at or above the Issue Price.

The Issue received 626,317 applications for 16,148,777,088 Equity Shares resulting in 49.56 times subscription (including the green shoe). The details of the applications received (before technical rejections) In the Issue from QIBs, non institutional bidders, retail individual bidders and eligible employees are as under:

Final Demand
A summary of the final demand at various price levels as per the electronic book is given below:

The Basis of Allocation was finalized In consultation with the National Stock Exchange ('NSE') on Friday, March 02, 2007. The IPO Committee of the Company at its meeting held on Friday, March 02, 2007 approved the Basis of Allocation of Equity Shares in the Issue and allotted the Equity Shares to various successful applicants.

A) Allocation to Non Institutional Bidders
This category (net of technical rejections) was over subscribed 21.9 times (Including green shoe). The total number of Equity Shares allotted in this category is 31,916,667. The category wise details of the Basis of Allocation in this category are as under

B) Allocation to Retail Individual Bidders:
This category (net of technical rejections) was over subscribed 3.86 times (Including green shoe). The total number of Equity Shares allotted in this category is 95,750,000. The category wise details of the Basis of Allocation in this category are as under:

C) Allocation to Eligible Employees
This category (net of technical rejections) was over subscribed 3.22 times. The total number of Equity Shares allotted in this category is 6,666,666. The category wise details of the Basis of Allocation in this category are as under:

D) Allocation to Qualified Institutional Buyers:

The Refund Orders /Allotment Intimations due to applicants have been dispatched to the address of the investors as registered with the depositories on Friday, March 2, 2007. in case the same is not received within ten days, investors may contact the address given below. The Refund Orders have been over printed with the bank mandate details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The listing applications were filed with the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited (together the 'Stock Exchanges') on Tuesday, March 6, 2007 and the Company is taking steps to get the Equity Shares admitted for trading on the Stock Exchanges within seven working days from the data of approval of the Basis of Allocation.

Investors Please Note:
The details of allocation are available on the website (www.bigshareonline.com) of the Registrar to the Issue, Blgshare Services Private Limited.
Further correspondence in respect of allotment of Equity Shares pertaining to the Issue may be addressed to the Registrar to the Issue, Bigshare Services Private Limited, quoting the 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:

Bigshare Services Private Limited
E/2 Ansa Industrial Estate, Sakivihar Road, Saki Naka, Andheri (East), Mumbai 400 072.
Tel:+ 91 22 2847 0652 Fax: +91 22 2847 5207,
Email: ideaipo@bigshareonline.com, Website: www.bigshareonline.com,
Contact person: Prakash Khare

This communication is intended for release solely in India. This communication is not an offer of securities for sale in any other jurisdiction, including the United States. The securities may not be offered or sold In the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended.

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 IDEA CELLULAR LIMITED.