Indus Fila IPO Basis of Allotment

INDUS FILA LIMITED
From Design to Delivery

(The Company was incorporated on June 10,1999 as Indus Fila Private Limited under the Companies Act, 1956. The name of the Company was subsequently changed to Indus Fila Limited by a special resolution of the shareholders of the Company at an Extraordinary General Meeting held on March 31,2006. The fresh certificate of incorporation consequent upon the change of name was granted on July 6,2006 by the Registrar of Companies, Bangalore, Karnataka. For details of incorporation, change in name and registered office, please refer to the chapter on Our History and Corporate Structure at page 86 of Prospectus)

Registered Office: 285, 37th KM Stone, TumkurRoad, Kasaba Hobli, T. Begur. Nelamangala- 562123.
Tel: + 91 8118-7733501; Fax: + 918118-7733167.
Corporate Office: No.107, Industrial Suburb, II Stage, Yeshwanthpur, Bangalore - 560 022. Tel: + 91 80 41369700; Fax: + 91 80 41369800; Website: www.indusfila.com.
Compliance Officer: Mr. Pradeep Totla; E-mail: pradeep@indusfila.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 48,43,789 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT AN ISSUE PRICE OF RS.170 PER EQUITY SHARE AGGREGATING TO RS.8234.44 LACS (HEREINAFTER REFERRED TO AS 'THE ISSUE'). THE NET ISSUE TO PUBLIC CONSISTS OF 48,43,789 EQUITY SHARES OF RS.10/- EACH AGGREGATING TO RS.8234.44 LACS. THE NET ISSUE WOULD CONSTITUTE 25% OF THE POST ISSUE PAIDUP CAPITAL OF THE COMPANY

THE FACE VALUE OF THE EQUITY SHARES IS RS.10 EACH AND THE ISSUE PRICE IS 17 TIMES OF THE FACE VALUE.

The Issue was made through the 100% book building process where in upto 50% of the Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs), out of which 5% of the QIB portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remaining QIB portion shall be available for allocation on a proportionate basis to all Qualified Institutional buyer, including Mutual Funds, subject to valid bids being received at or above issue price. Further, atleast 15% of the Net Issue to the public shall be available for allocation on a proportionate basis to Non- Institutional Bidders and atleast 35% 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 the Issue Price.

The Board of Directors of Indus Fila Limited wish to thank the investing public for their response to the Issue which opened for subscription on February 12,2007 and closed on February 14,2007. The Issue has received 7032 valid applications for 65,13,768 Equity Shares, resulting in 1.34 times subscription. The details of the subscription received in the Issue from QIBs, Non-Institutional, Retail categories are as under:

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

The Basis of Allocation was finalised in consultation with the Designated Stock Exchange - The Bombay Stock Exchange Limited ('BSE') February 27,2007.

A) ALLOCATION TO RETAIL INDIVIDUAL BIDDERS
The Basis of Allocation to the Retail Individual Bidders, who have bid at the Issue Price of Rs. 170/- and above per Equity Share, was finalized in consultation with BSE. The Company has received 6980 valid applications for 1059480 Equity Shares in this category resulting in 0.62 times subscription. The unsubscribed portion of 635846 Equity Shares has been offered to the Non-Institutional category. The category-wise details of the Basis of allotment are as under:

B) ALLOCATION TO NON INSTITUTIONAL BIDDERS
The Basis of Allocation to the Non-Institutional Bidders, who have bid for at the Issue Price of Rs. 170/- and above per Equity Share, was finalized in consultation with BSE. The Company has received 46 valid applications for 2563560 Equity Shares in this category and unsubscribed portion of 635846 shares in Retail category has also been offered to this category resulting in 1.88 times subscription. The category-wise details of the Basis of allotment are as under:

C) ALLOCATION TO QUALIFIED INSTITUTIONAL BUYERS

The Board of Directors for the Issue of the Company; vide resolution dated February 27,2007, has approved the basis of allocation of Equity Shares and allotted the Equity Shares to various successful applicants.

The Confirmation of Allocation Note ('CAN') and Refund Orders in respect of refunds due to applicants have been dispatched to the address of the investors as registered with the depositories. In case the same is not received within ten (10) 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 Equity Shares allotted to successful applicants are being credited to their respective 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 National Stock Exchange of India Limited ('NSE') and The Bombay Stock Exchange Limited ('BSE') within seven (7) working days from the date approval of Basis of Allocation.

INVESTORS PLEASE NOTE
These details of allocation made would be hosted on the website of the Registrar to the Issue, Datamatics Financial Services Limited at www.dfssl.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue, Datamatics Financial Services Limited, quoting 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:

Datamatics Financial Services Limited
Plot No.A.-16 & 17, Part B, Crosslane, MIDC, Marol, Andheri (E), Mumbai 400 093.
Tel: +91 222837 5519-24, Fax: +91 2228350217,
Website: www.dfssl.com, Email: indusfila@dfssl.com,
Contact person: Mr. Dnyanesh Gharote

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.

THE LEVEL OF SUBSCRIPITION SHOULD NOT BE TAKEN INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF INDUS FILA LIMITED