Karnavati Finance IPO Basis of Allotment

KARNAVATI FINANCE LIMITED

Our Company was originally incorporated as 'Kamavati Finance & Leasing Limited' at Mumbai on December 5, 1984 and received certificate of commencement on May 7,1985 by Registrar of Companies, Mumbai. The name of the Company was changed to 'Kamavali Finance Ltd' on December 11, 1989. For further details, in relation to the change in the name of our Company, please  refer to the sections titled 'Our History and Certian Corporate Structure' beginning on page 74 of this Prospectus.

Registered Office: Unit No. 2, Sagar Deep Darshan Co-operative Housing Society Limited, S V Road,Borivali (W), Mumbai 400092.
Corporate Office: vraj, 5th Floor. Opp. President Hotel, Near Bhumi Press, Limda Lane, Jamnagar -361001. Tel No: +91 -0288-2663042 Fax No: +91 -0288-2673759
E-Mail: Kamavatifinance@gmail.com Website: www.Kamavatifinancelimited.in Contact Person & Compliance Officer: Mr. Ankit Shukla, Company Secretary & Complianca Officer;

PROMOTERS OF THE COMPANY: Mr Raman Morzaria and Mr Jay Morzaria

PUBLIC ISSUE OF 25,80,000 EQUITY SHARES OF Rs. 10 EACH OF KARNAVATI FINANCE LIMITED (THE 'KFL' OR THE 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF Rs. 10 PER EQUITY SHARE. (THE 'ISSUE PRICE'), AGGREGATING TO Rs.258.00 LACS ('THE ISSUE'), OF WHICH 1,40,000 EQUITY SHARES OF Rs 10 EACH WILL BE RESERVED FOR SUBSCRIPTION BY THE MARKET MAKER TO THE ISSUE (THE 'MARKET MAKER RESERVATION PORTION'). THE ISSUE LESS MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 24,40,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PR ICE OF Rs 10.00 AGGREGATING TO Rs. 244.00 LACS IS HEREINAFTER REFERED TO AS THE ' NET ISSUE'. THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 30.86% AND 29.19%, RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY.

In terms of Prospectus dated 9th January, 2015 and as per Regulation 43 (4) of SEBI (ICDR] Regulations, 2009 wherein a minimum of 50 % of the Net Offer to Public shall be made available to shall be initially made available to Retail Individual Investors as the case may be. The balance net offer of shares to the public shall be made available for allotment to a) individual applicants other than retail investors and b) other investors including corporate bodies / institutions, irrespective of no. of shares applied for. The unsubscribed portion of the net offer to any one of the categories specified in (a.) or (b) shall/may be made available for allocation in any other category, if so required.

Explanation: for the purpose of Regulation 43 (4) of SEBI (ICDR) Regulations, 2009, if the retail individual investor is entitled to more than fifty percent, on proportionate basis, the retail individual investors shall be allocated that higher percentage.

THE FACE VALUE OF THE EQUITY SHARES IS RS. 10/- EACH AND THE ISSUE PRICE IS Rs. 10/- EACH. THE ISSUE PRICE IS 1 (ONE) TIME OF THE FACE VALUE. ISSUE OPENED ON 19TH JANUARY,2015 AND CLOSED ON 21ST JANUARY, 2015.

The Equity Shares offered through the Prospectus are proposed to be listed on the SME platform of BSE Limited ('BSE') in terms of the chapter XB of the SEBI (ICDR) Regulations, 2009 as amended from time to time, Company is not required to obtain an in-principle approval of the shares being offered in this Issue. However Company has received an approval letter dated December 26, 2014 from BSE for using its name in the offer document for listing of our Shares on the SME platform of BSE. The designated stock exchange is BSE Limited.

All Applicants were allowed to participate in the Issue through APPLICATION SUPPORTED BY BLOCKED AMOUNT {'ASBA') process by providing the details of the respective bank accounts in which the corresponding application amounts were blocked by Self Certified Syndicate Banks (the 'SCSBs').

SUBSCRIPTION DETAILS

The Issue has received 103 applications for 30,80,000 Equity Shares (Including Market Maker Application of 1,40,000 Equity Shares) resulting 1.19 times Subscription. The details of the applications received in the Issue (before technical rejections) are as follows:

There were no applications rejected by the Registrar on technical grounds and no withdrawal of applications. Deta il of the valid Applications Received (Before Technical Rejection & withdrawal of application):

ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - BSE Limited on 30th January, 2015.

A. Allocation to Market Maker (After Technical Rejections & Withdrawal): The Basis of Allotment to the Market Maker, at the issue price of Rs. 10/- per Equity Share, was finalised in consultation with BSE. The category was subscribed by 1.00 times. The total number of shares allotted in this category is 1,40,000 Equity shares in full out of reserved portion of 1,40,000 Equity Shares.

B. Allocation to Retail Individual Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to the Retail Individual Investors. at the issue price of Rs.10/- per Equity Share, was finalized in consultation with BSE. The category was subscribed by 0.93 times. Total number of shares allotted in this category is 11,40,000:

C. Allocation to Non Retail Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to the Non Retail Investors, at the issue price of Rs. 10/-per Equity Share, was finalized in consultation with BSE. The category was subscribed by 1.48 times. Total number of shares allotted in this category is 13,00,000 including unsubscribed portion of 80000 Equity Shares of Retail Individual Investors. The category wise basis of  allotment is as under:

The Board of Directors of the Company at its meeting held on 31 st January, 2015 has taken on record the Basis of Allocation of Equity Shares approved by the Designated Stock Exchange viz. BSE and has authorized the corporate action for the transfer of the Equity Shares / dispatch of share certificates to various successful applicants.

The CAN-cum-Refund Orders and allotment advice and/or notices are being dispatched to the address of the Applicants as registered with the depositories/ as filled in the application form on or before 3rd February, 2015. Further, the instructions to Self Certified Syndicate Banks being processed on or prior to 3rd February, 2015. In case the same is not received within 10 days, investors may contact at the address given below. 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 SME Platform of BSE Limited within Twelve working days from the date of the closure of the Issue. The trading is proposed to be commenced on or before 5th January, 2015 subject to receipt of listing and trading approvals from BSE Limited.

INVESTORS PLEASE NOTE

The details of the allotment made would also be hosted on the website of the Registrar to the Issue. Satellite Corporate Services Pvt. Ltd at www.satellitecorporate.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicants, serial number of the Application Form, number of shares applied for and Bank Branch where the application had been lodged and payment details at the address of ihe Registrar given below:

SATELLITE CORPORATE SERVICES PVT LIMITED

B-302 SONY APARTMENT, OPPST JUDE HIGH SCHOOL, 90 FT ROAD, JARIMARl, SAKINAKA, MUMBAI-400072
Tel No.: +91-22-28520461/2; Fax No.: +91-22-28511809 CIN: U65990MH1994PTC077057
website: www.satellitecorporate.com; E-mail ID:service@satellitecorporate com; sme.ipo@satellitecorporate.com
SEBI REGN NO: INR000003639; Contact person. Mr. Michael Monteiro.