JSW Energy IPO Basis of Allotment

(Our Company was incorporated as Jindal Tractebel Power Company Limited under the Companies Act, 1956 on March 10, 1994 in Mumbai. The name of our Company was changed to Jindal Thermal Power Company Limited on January 17,2002. Subsequently the name of our Company was changed to JSW Energy Limited on December 7,2005.)
Registered Office: Jindal Mansion, 5A, Dr.G.Deshmukh Marg, Mumbai -400 026, Maharashtra. Corporate Office: The Enclave, Behind Marathe Udyog Bhavan, New Prabhadevi Road, Prabhadevi, Mumbai -400025. Tel: +91-22-6783 8000, Fax: +91-22-2432 0740 Email: ipo.jswenergy@jsw.in Website: www.jsw.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 269,821,236 EQUITY SHARES OF Rs. 10 EACH OF JSW ENERGY LIMITED ("JSWEL" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF Rs. 10# PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 90 PER EQUITY SHARE) FOR NON INSTITUTIONAL AND QIB BIDDERS AND Rs.95 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 85 PER EQUITY SHARE) FOR RETAIL INDIVIDUAL BIDDERS AGGREGATING TO Rs. 27,000 MILLION (THE "ISSUE"). THE ISSUE CONSTITUTE 16.43% OF THE POST ISSUE PAID-UP CAPITAL OF THE COMPANY.
THE FACE VALUE OF EQUITY SHARES IS Rs. 10 EACH. THE ISSUE PRICE IS RS. 100# AND IS 10 TIMES THE FACE VALUE.

The Issue has been made through the 100% Book Building Process wherein at least 60% of the Net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") out of which 5% was to be made available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10% of the Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Issue was available for allocation on a proportionate basis to Retail Bidders, subject to valid Bids being received at or above the Issue Price. The issue was made for 269,821,236 equity shares. However, the actual number of shares allotted are 267,326,604. The reason for the difference is as under:
The Retail Individual Investors category was subscribed to the extent of 31,053,720 equity shares. The unsubscribed portion of 49,892,651 equity shares duly converted at a price of Rs.100/- was made available to the Qualified Institutional Investors category. The number of such shares is 47,398,019. This explains the difference between the number of shares indicated in the prospectus and the actual number of shares allotted in the public issue of the company. Consequently, the dilution of post-Issue paid-up capital decreased from 16.43% to 16.30%.
The Issue received 86,704 applications for 421,353,073 Equity Shares resulting in 1.56 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders, Retail Individual Bidders and Anchor Investors are as under: (Before technical rejections and as per escrow banks' certificate)

Final Demand
A summary of the final demand as per the BSE and the NSE as on the Bid/ Issue Closing Date at different bids is as detailed hereunder:

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ("BSE") on December 22, 2009.

A. Allocation to Retail Individual Bidders (including Applications Supported by Blocked Amount ("ASBA")) (After Technical Rejections)
The Basis of allocation to the Retail Individual Bidders, who have bid at cut-off or at or above the Issue Price (net of retail discount of Rs. 5 per Equity Share) of Rs. 95 per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 0.38 times and hence allotment was done on full and firm basis to all valid applicants. The total number of Equity Shares allotted in Retail Individual Bidders category is 31,053,720 Equity Shares to 85,235 valid applicants. The above includesl 7,854 applications for 4,742,520 Equity Shares made under the ASBA process of which 17,676 applications for 4,706,040 Equity Shares were found valid for allotment. The unsubscribed portion duly adjusted to the issue price of Rs. 100 aggregating to 47,398,019 Equity Shares was added to the Qualified Institutional Bidders category.

B. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of allocation to the Non-Institutional Bidders, who have bid at or above the Issue Price of Rs.100 per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 0.05 times. Hence allotment under this category was made on full and firm basis to all valid applicants. Under this category 1,393,380 Equity Shares were allotted to 79 valid applicants. The unsubscribed portion aggregating to 25,588,743 Equity Shares was added to the Qualified Institutional Bidders category.

C. Allocation to QIBs (excluding Anchor Investor Portion)
After allocation of 42,260,820 Equity Shares to Anchor Investors, 192,618,684 Equity Shares were available for allocation to QIBs. This included 72,986,762 Equity Shares representing the unsubscribed portion from the Retail Individual Bidders and Non Institutional Investors categories. In accordance with the SEBI Regulations, 5% of the QIB Portion (excluding Anchor Investor Portion) i.e. 9,630,934 Equity Shares were available for allotment to Mutual Funds. However the aggregate valid demand from Mutual Funds was only to the extent of 5,686,980 Equity Shares and hence they were allotted Equity Shares on full and firm basis. The balance QIB portion, being 186,931,704 Equity Shares, was allocated on a proportionate basis to all other QIBs.

D. Anchor Investors
The Company allocated 42,260,820 Equity Shares to seven (7) Anchor Investors in consultation with the BRLMs. This represents less than 30% of the QIB Portion.
The IPO Committee of the Board of Directors of the Company at its Meeting held on December 22, 2009 has approved the basis of allocation of Equity Shares of the Issue and has accordingly allotted the Equity Shares to the Bidders. The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on or prior to December 24, 2009. Further, the instructions to Self Certified Syndicate banks have been dispatched on or prior to December 24, 2009. In case the same is not received within 10 days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Account details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants are being 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 BSE and the NSE within seven (7) working days from the date of approval of the basis of allocation, i.e., on or before January 5, 2010.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrar to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.com
All future correspondence in this regard may kindly be addressed to the Registrar to the Issue 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:

Karvy Computershare Private Limited
Unit: JSW Energy Limited
Plot No. 17 to 24, Vittalrao Nagar, Hitech City Road, Madhapur, Hyderabad - 500081,
Fax: 040-23420814 Email: einward.ris@Karyy.com
TOLL FREE - HELPLINE NUMBER: 1-800-3454001

The Equity Shares of the Company have not been and will not be registered under the U.S. Securities Act 1933, as amended ("U.S. Securities Act"), or any state securities laws in the United States and may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act. This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer for sale of securities in any jurisdiction, including the United States. The issuer does not intend to register any portion of the offering in the United States or to conduct a public offering of securities in the United States.