Mandhana Industries IPO Basis of Allotment

MANDHANA INDUSTRIES LIMITED

Our Company was originally Incorporated at Mumbai on July 25,1984 as 'Mandhana Textile Mills Private Limited' under the Companies Act, 1956, with registration number 11 - 33553 of 1984. With effect from July 1,1993, our Company was converted into a deemed public limited company under Section 43A of the Companies Act, 1956. On April 18,1995 the name of our Company was changed from 'Mandhana Textile Mills Limited' to 'Mandhana Industries Limited'. On March 27,2002, pursuant to Section 43A (2A) of the Companies Act, 1956, our company was converted from a deemed public limited company to a private limited company whereby the name of our Company was, changed to 'Mandhara Industries Private Limited'. On May 15, 2007, our Company was further converted into a public limited company and the name of our company was changed to 'Mandhana Industries Limited'. Our Corporate Identity Number is U17120MH1984PLC033553.)

Registered Office: Plot number C-3, MIDC, Tarapur Industrial Area, Boisar, Thane-401 506, Maharashtra, India. Tel No.: + 91 -2525-272228/29; Fax No.: +91-2525-260251.
(For details of changes in our Registered Office, please refer to the chapter titled 'History and Other Corporate Matters' beginning on page no. 129 of the Prospectus);
Corporate Office: 205/214, Peninsula Centre, Dr. S.S. Rao Road, Off Dr. Ambedkar Road, Parel (East),
Mumbai - 400 012, Maharashtra, India. Tel No.: + 91-22-4353 9191; Fax No.: + 91-22-4353 9218;
E-mail: ipo@mandhana.com; Website: www.mandhana.com;
Contact Person: Mr. Vinay Sampat, Company Secretary and Compliance Officer

Promoters of our Company: Mr. Purushottam Mandhana, Mr. Biharilal Mandhana, Mr. Manish Mandhana, Mr. Priyavrat Mandhana and Purushottam Mandhana (HUF).

THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 130/- AND IT IS 13 TIMES THE FACE VALUE

The Issue was made under sub-regulation (1) of Regulation 26 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 ('SEBI (ICDR) Regulations') and through the 100% Book Building Process wherein not more than 50% of the Issue was allocated on a proportionate basis to Qualified Institutional Buyers, of which 5% (excluding Anchor Investor Portion) was available for Allocation on a proportionate basis to Mutual Funds only and the remaining QIB portion was available for allocation to the QIB bidders including Mutual Funds, subject to valid Bids being received at or above the Issue Price.The QIB portion includes Anchor Investor portion as defined in the section titled 'Definitions and Abbreviations' on page i of the Prospectus and and our Company has allocated 11,53,850 Equity Shares to the Anchor Investors in accordance with the applicable SEBI (ICDR) Regulations. Further, not less than 35% of the Issue was available for allocation on a proportionate basis to Retail Individual Bidders and not less than 15% of the Issue was available for allocation on a proportionate basis to Non-Institutional Bidders, subject to valid Bids being received at or above the Issue Price.

The Issue received 15,932 applications for 45,115,950 equity shares resulting in 5.44 times subscription. The details of the applications received in the Issue from Qualified institutional Buyers, Non-Institutional, Retail Individual Bidders and Anchor categories are as under (Before technical rejections and after Cheque return)

Final Demand
A summary of the final demand as per BSE and NSE as on the Bid/Issue Closing date at different bid prices is as under:

'The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ('BSE') on May 11,2010

A. Allotment to Retail Individual Investors (After Technical Rejections) Including ASBA applications

The Basis of allotment to the Retail Individual Investors, who have bid at cut off and the Issue Price of Rs. 130/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 2.592 times. The total number of shares allotted in this category is 29,05,000 Equity Shares to 13,572 successful applicants. The category-wise details of the Basis of Allotment are as under:

B. Allotment to Non Institutional Investors (After Technical Rejections) including ASBA applications
The Basis of allotment to the Non Institutional Investors, who have bid at the Issue Price of Rs. 130/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 9.371 times. The total number of shares allotted in this category is 12,45,000 Equity Shares to 60 successful applicants. The category-wise details of the Basis of allotment are as under (Sample):

C. Allotment to QIBs
Allotment to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI (ICDR) Regulations, Mutual Funds were initially allotted 5% of the quantum of shares available (1,49,807 Equity Shares to 4 successful applicants), and other QIBs (including Mutual Funds) were allotted the remaining available shares (28,46,343 Equity Shares to 19 successful applicants) on proportionate basis.

D. Allotment to Anchor Investors
Allotment to Anchor Investors has been done on a discretionary basis by the company in consultation with the Book Running Lead Managers. As per the SEBI (ICDR) Regulations, upto 30% of QIB Portion can be allocated to Anchor Investors. The Company has allotted 11,53,850 Equity Shares to Anchor Investors in this Issue

The IPO committee of the Board of Directors of the company at its Meeting held at Mumbai on May 12, 2010 has approved the basis of allotment of shares of the Issue and has allotted the shares to various successful applicants.

The CAN-cum-Refund Orders and allotment advice and notices have been dispatched to the address of the investors as registered with the depositories. In case the same is not received within ten 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 shares allotted 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 Bombay Stock Exchange Limited and the National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allotment.

Note: All capitalized terms used and not defined herein shall have the respective meaning assigned to them in the Prospectus dated May 6,2010 ('Prospectus')

These details of the allocation made would be hosted on the website of Registrars to the Issue, Link Intime India Private Limited at http://www.linkintime.co.in

All future correspondence in this regard may kindly be addressed to the Registrars to the issue quoting full name of the First/ Sole applicant, 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:

Link Intime India Private Limited
C -13 Pannalal Silk Mills Compound, L.B.S Marg, Bhandup (West), Mumbai - 400 078
Email: mandhana.ipo@linkintime.co.in, Contact Person: Mr. Sachin Achar

Tel. No.: +91 22 2596 0320, Fax No.: +91 22 2596 0329