Jindal Cotex IPO Basis of Allotment

JINDAL COTEX LIMITED

(Our Company was incorporated as 'Jindal Cotex Limited' under the provisions of the Companies Act, 1956 on February 18,1998 and obtained Certificate for Commencement of Business on February 20,1998.)
Registered Office: V.PO. Jugiana, 6. T. Road, Ludhiana -141 420, Punjab, India.
Tel No: +91 161 2511840 / 41 / 42; Fax No: +91 161 2511843;
E-mail: ipo@jindalcotex.com; Website: www.jindalcotex.com, Contact Person: Mr. Ashish Jain, Chief Financial Officer

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 1,24,53,894 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH ('EQUITY SHARES') FOR CASH AT A PRICE OF RS. 75 PER EQUITY SHARE (INCLUDING A PREMIUM OF RS. 65 PER EQUITY SHARE) AGGREGATING Rs. 9,340.42 LACS (THE ISSUE') COMPRISING OF PROMOTERS' CONTRIBUTION OF 12,03,894 EQUITY SHARES OF RS. 10 EACH AT A PRICE OF RS. 75 FOR CASH AGGREGATING RS. 902.92 LACS (REFERRED TO AS THE 'PROMOTERS' CONTRIBUTION') AND RESERVATION FOR ELIGIBLE EMPLOYEES OF OUR COMPANY OF 5,00,000 EQUITY SHARES RS. 10 EACH AT A PRICE OF RS. 75 FOR CASH AGGREGATING RS. 375.00 LACS (REFFERED TO AS THE ('EMPLOYEE RESERVATION PORTION'). THE NET ISSUE TO THE PUBLIC IS OF 1,07,50,000 EQUITY SHARES OF RS. 10 EACH AT A PRICE OF RS. 75 FOR CASH AGGREGATING RS. 8,062.50 LACS (REFERRED TO AS THE 'NET ISSUE'). THE NET ISSUE CONSTITUTES 43.00% OF THE POST ISSUE PAID UP CAPITAL OF OUR COMPANY.

THE FACE VALUE PER EQUITY SHARE IS RS. 10/- EACH. THE ISSUE PRICE OF THE EQUITY SHARES IS RS. 75 PER EQUITY SHARE WHICH IS 7.5 TIMES THE FACE VALUE OF THE EQUITY SHARES.

This Issue is being made through a 100% Book Building Process wherein upto 50% of the Issue was to be allocated to Qualified Institutional Buyers (QIBs) on a proportionate basis, subject to valid bids being received at or above the Issue Price. Out of the portion available for allocation to the QIBs, 5% was available for allocation to Mutual Funds only. Mutual Fund Bidders were also to be eligible for proportionate allocation under the balance available for the QIBs. Further, upto 15% of the Issue was to be available for allocation on a proportionate basis to Non Institutional Bidders and upto 35% of the Issue was to be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price.

Our Company wishes to thank all the Investors for their response to the Public Issue which opened for subscription on August 27, 2009 and closed on September 01, 2009. The Issue received 19,452 applications for 1,92,45,780 Equity Shares (after cheque return) resulting in 1.711 times subscription. The details of the applications received in the Issue from QIBs,Non-Institutional Bidders, Employees and Retail Individual Bidders categories are as under: (Before Technical & Multiple Rejections)

Final Demand
The final demand at different bid prices is as under:

The Basis of Allotment was finalized in consultation with Bombay Stock Exchange Limited ('BSE'), which is the Designated Stock Exchange on Friday, September 11, 2009. Details of valid applications received and allotment done as under:

A) Allocation to Retail Investors (After Technical Rejections)
The Basis of Allotment to the Retail Individual Bidders, who bid at the cut-off price or at the Issue Price of Rs. 75/- per Equity Share, was finalized in consultation with the BSE. The Company received 18,729 valid applications for 1,08,92,070 Equity Shares in this category resulting in 2.0172 times subscription. After taking into consideration spill over of 14,67,081 Equity Shares from QIB category and 1,69,897 Equity Shares from Employee, the total number of Equity Shares allotted in this category is 54,02,610 Equity Shares. The category wise details of the Basis of Allotment are given below.

B) Allocation to Non Institutionals Bidders (After Technical Rejections)
The Basis of Allotment to the Non Institutional Bidders, who bid at the Issue Price of Rs. 75 per Equity Share, was finalized in consultation with the BSE. The Company received 88 valid applications for 44,96,400 Equity Shares in this category resulting in 1.9430 times subscription. After taking into consideration spill over of 6,28,749 Equity Shares from QIB category and 72,813 Equity Shares from Employee, the total number of Equity Shares allotted in this category is 23,14,070 Equity Shares. The category wise details of the Basis of Allotment are given below (Sample):

Applicants in this category have been given firm allotment on proportionate basis inverse to the over subscription ratio.

C) Allocation to QIBs
Allocation to QIBs was done on a proportionate basis. As per the SEBI guidelines, Mutual Funds were to be initially allotted 5% of the quantum of shares available. However there was no participation from Mutual Funds as a result of which full and firm allotment has been made in the QIB category.

D) Allocation to Employee
The Basis of Allotment to the Employee category was finalized in consultation with the BSE. The Company received 18 valid applications for 14580 Equity Shares in this category resulting in 0.029 times subscription. Allocation to Employee was done on a full & firm basis due to under subscription in the said category.

The Board of Directors of Jindal Cotex Limited at a meeting held on September 12,2009 approved the Basis of Allotment of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants.

The CAN-cum-Refund Orders and ECS/RTGS Intimation has been dispatched to the address of the investors as registered with the depositories. In case the same are not received within ten days, investors may contact the Registrar to the Issue 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 the successful applicants have been 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 The National Stock Exchange of India Limited and within seven working days from the date of approval of Basis of Allotment.

INVESTORS PLEASE NOTE
These details of the allocation will also be available on the website of the Registrar to the Issue, Bigshare Service Private Limited, at http:// www.bigshareonline.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting the full name of the First/Sole applicants, 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 :

Bigshare Services Private Limited
E-2,Ansa Industrial Estate, Saki Vihar Road, Sakinaka, Andheri (E), Mumbai - 400 072
Phone: (91-22) 4043 0200; Fax: (91-22) 2847 5207
Email: ipo@bigshareonline.com; Website: www.bigshareonline.com
Contact Person: Mr. Ashok Shetty

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 JINDAL COTEX LIMITED.