Motilal Oswal IPO Basis of Allotment

MOTILAL OSWAL FINANCIAL SERVICES LIMITED

(Incorporated on May 18, 2005 under the Companies Act, 1956 as a public limited company vide
Registration No. 11 -153397)
Registered Office: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West),
Mumbai 400 064, Maharashtra, India.
Telephone No: +91 22 3080 1000; Fax No: + 91 22 2844 9044;
Email: initialoffer@motilaloswal.com; Website: www.motilaloswal.com;
Contact Person: Mr. Tarun Khurana, Company Secretary & Compliance Officer

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 2,982,710 EQUITY SHARES OF RS. 5/- EACH FOR CASH AT A PRICE OF RS. 825 PER EQUITY SHARE AGGREGATING TO RS. 2,460.74 MILLION (HEREINAFTER REFERRED TO AS 'THE ISSUE') BY MOTILAL OSWAL FINANCIAL SERVICES LIMITED ('THE COMPANY' OR THE ISSUER'). THE FACE VALUE OF THE EQUITY SHARES IS RS. 5/- EACH. THE ISSUE INCLUDES A RESERVATION OF 142,310 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES ('THE EMPLOYEE RESERVATION PORTION') AT THE ISSUE PRICE. THE ISSUE CONSTITUTES 10.50% AND THE NET ISSUE CONSTITUTES 10% OF THE POST ISSUE PAID-UP CAPITAL OF THE ISSUER.

THE ISSUE PRICE OF THE EQUITY SHARES IS RS. 825 PER EQUITY SHARE
WHICH IS 165 TIMES THE FACE VALUE OF THE EQUITY SHARES.

The Issue was made through the 100% Book Building Process wherein atleast 60% of the Net Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (including 5% of the QIB portion that would be specifically reserved for Mutual Funds). 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. 1,42,310 shares were to be allotted on a Firm Allotment basis to Eligible Employees.
The Issue opened for subscription on August 20,2007 and closed on August 23,2007. The Issue received 49,222 applications for8,l0,70,l28 Equity Shares resulting in 27.l8 times subscription. The details of the applications received in the Issue from QIBs, Non-Institutional Bidders, Retail Individual Bidders and Eligible Employee 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 finalised in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited ('BSE') on Tuesday, September 4,2007.

A) Allocation to Employees
The Basis of Allotment to the Employees in the Firm Allotment category, who bid at the cut-off price or at the Issue Price of Rs. 825 per Equity Share, was finalized in consultation with the BSE. The Company received 304 valid applications for 2,35,512 Equity Shares as against a Firm Allotment portion of 1,42,310 Equity Shares resulting in 6.54922 times subscription. The category wide details of the Basis of Allotment are given below (Sample):

B) Allocation to Retail Investors
The Basis of Allotment to the Retail Individual Bidders, who bid at the cut-off price or at the issue Price of Rs. 825 per Equity Share, was finalized in consultation with the BSE. The Company received 47,746 valid applications for 35,64,480 Equity Shares in this category resulting in 4.183073 times subscription. The total number of Equity Shares allotted in this category is 8,52,122. The category wide details of the Basis of Allotment are given below:

C) Allocation to Non Institutional Bidders
The Basis of Allotment to the Non Institutional Bidders, who bid at the Issue Price of Rs. 825 per Equity Share, was finalized in consultation with the BSE. The Company received 149 valid applications for 25,67,392 Equity Shares in this category resulting in 9.038840 times subscription. The total number of Equity Shares allotted in this category is 2,84,038. The category wide details of the Basis of Allotment are given below (Sample):

D) Allocation to QIBs

Allocation to QIBs was done on a proportionate basis. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available 85,212 Equity Shares. Other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining 16,19,028 Equity Shares.

The IPO Committee of the Board at a meeting held in Mumbai, on September 5,2007 approved the Basis of Allotment of Equity Shares In the Issue and recommended the allotment of Equity Shares to successful applicants.
The Refund Orders / allotment advice in respect of refunds due to applicants are being dispatched to the addresses 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 overprinted with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to the 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 National Stock Exchange of India Limited and Bombay Stock Exchange Limited 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, Intime Spectrum Registry Limited, at http://www.intimespectrum.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:

INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai 400078.
Phone: (91 -22) 2596 0320; Fax: (91 -22) 2596 0329;
Email: mofsl.ipo@intimespectrum.com; Website: www.intimespectrum.com

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 MOTILAL OSWAL FINANCIAL SERVICES LIMITED.