Koutons IPO Basis of Allotment

KOUTONS RETAIL INDIA LIMITED

(Incorporated on November 25,1994 under the Companies Act, 1956, as amended, as Charlie Creations Private Limited.
The name of the Company was changed to Koutons Retail India Private Limited with effect from February 7,2006.
The Company was converted into a public limited company and its name was changed to
Koutons Retail India Limited with effect from June 27, 2006.)
The registered office of the Company was changed from T-60/1, D.C.M. School Road, New Rohtak Road, Karol Bagh, New Delhi 110 005, India to J-2 Udyog Nagar, Peera Garhi Chowk, New Delhi 110 041, India on November 26,2001 and thereafter on February 1,2006 to its current registered office at
T-60/1, D.C.M. School Road. New Rohtak Road, Karol Bagh, New Delhi 110 005, India.
Tel: + (91) (11) 65451320; Fax: + (91) (11) 2362 6149.
Corporate Office: 274-275, Udyog Vihar, Phase-VI, Sector-37, Gurgaon 122 001 (Haryana), India;
Tel: + (91) (124) 413 9300; Fax: + (91) (124) 413 9399.
Contact Person: Mr. Ajay Mahajan;
E-mail: ipo2007@koutons.com; Website: www.koutons.com.

BASIS OF ALLOCATION

PUBLIC ISSUE OF 3,524,439 EQUITY SHARES OF Rs. 10 EACH ('EQUITY SHARES') OF KOUTONS RETAIL INDIA LIMITED (THE 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF RS. 415 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 405 PER EQUITY SHARE), CONSISTING OF A FRESH ISSUE OF 2,607,897 EQUITY SHARES ('FRESH ISSUE') AND AN OFFER FOR SALE OF 916,542 EQUITY SHARES BY MR. DPS KOHLI, MR. BS SAWHNEY AND MR. GS SAWHNEY (THE 'SELLING SHAREHOLDERS'), AGGREGATING RS. 1,462.64 MILLION (THE 'ISSUE'). UPTO 50,000 EQUITY SHARES WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE 'EMPLOYEE RESERVATION PORTION'). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE 'NET ISSUE'. THE ISSUE WILL CONSTITUTE APPROXIMATELY 11.54% OF THE COMPANY'S POST-ISSUE CAPITAL. THE NET ISSUE WILL CONSTITUTE APPROXIMATELY 11.37% OF THE COMPANY'S POST-ISSUE CAPITAL ISSUE PRICE OF RS. 415 PER EQUITY SHARE OF FACE VALUE RS. 10 EACH. THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 AND THE ISSUE PRICE IS 41.5 TIMES OF THE FACE VALUE.
Pursuant to Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended ('SCRR'), this issue consists of an issue for less than 25% of the post-Issue capital and was made through a 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 available for allocation on a proportionate basis to Mutual Funds only and the remainder was to 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. In addition, in accordance with Rule 19(2) (b) of the SCRR, a minimum of two million securities were offered to the public and the size of the Net issue aggregated to at least Rs. 1,000 million. If at least 60% Of the Net Issue was not allocated to QIBs, then the entire application money was to be refunded forthwith. Further, not less than 10% of the Net Issue was to be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 30% of the Net 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. Further up to 50,000 Equity Shares were to 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 opened for subscription on Tuesday, September 18, 2007 and closed on Friday, September 21,2007. The Issue has received 123,606 applications for 158,948,031 Equity Shares resulting in a 45.09882 times subscription. The details of the subscription received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail and Employee Reservation categories (before technical rejections) are as under:

* After eliminating cheque returns.
# Including bids received at cut-off price.

Final Demand
A summary 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') on Thursday, October 4,2007. The IPO Committee of Directors of the Company vide resolution dated Friday, October 5, 2007 has approved the basis of allocation of Equity Shares and allotted the Equity Shares to various successful applicants.

A. ALLOCATION TO NON-INSTITUTIONAL BIDDERS
The Company has received 187 valid applications for 5,633,580 Equity Shares in this category resulting in a 16.21435 times subscription. The number of Equity Shares allotted to Non-Institutional Bidders is 347,444. A sample of category-wise details ot the Basis of Allocation is as under:

B. ALLOCATION TO RETAIL INDIVIDUAL BIDDERS
The Company has received 120,491 valid applications for 14,561,310 Equity Shares In this category resulting in 13.96993 times subscription. The number of Equity Shares allotted to Non-Institutional Bidders is 1,042,332. The category-wise details of the Basis of Allocation are as under:

C. ALLOCATION TO ELIGIBLE EMPLOYEES
The Company has received 105 valid applications for 58,320 Equity Shares in this category resulting in a 1.16640 times subscription. The number of Equity Shares allotted to Eligible Employees is 50,000. A sample of category-wise details of the Basis of Allocation is as under:

D. ALLOCATION TO QUALIFIED INSTITUTIONAL BUYERS
Allocation to QIBs has been done on a proportionate basis in consultation with the BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of Equity Shares available (104,233) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available Equity Shares (1,980,430) on a proportionate basis.

The Confirmation of Allocation Note ('CAN'), Refund Orders and allotment advice and notices are being 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 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 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 Slock 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 allotment made would be hosted on the website of the Registrar to the Issue, Karvy Computershare Private Limited at http://kcpl.karvy.com
All future correspondence in this regard may kindly be addressed to the Registrar to the Issue, Karvy Computershare Private 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:

KARVY COMPUTERSHARE PRIVATE LIMITED
Unit: koutons, plot No.17 to 24, Vithalrao Nagar, Madhapur, Hyderabad - 500 081, india
Tel: +(91)(40)-23420815-820(Toll Free Helpline Number:1-800-345001)
Fax: +(91)(40)23420814
Email: einward.ris@karvy.com, Website: www.karvy.com
Contact Person: Mr.M.Murali Krishna

This communication is intended for release solely in india. This communication is not an offer os securities for sale in any other jursdiction, Including the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under theUS Securities Act of 1933

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 KOUTONS RETAIL INDIA LIMITED.