Mudra Lifestyle IPO Basis of Allotment

MUDRA LIFESTYLE LIMITED

(The company was originally incorporated as Bombay Rise Fabrics Private Limited on March 31, 1997. Name of the company was changed to Mudra Textiles Private Limited w.e.f. October 10, 2001. Name of the company was further changed to Mudra Textile Limited w.e.f. December 1, 2005. Name of the company was further changed to
Mudra Lifestyle Limited w.e.f. December 2, 2005)
Registered Office: 149, Shiv Shakti industrial Estate. III Phase, Andheri Kurla Road. Andheri East, Mumbai 400 059, Maharashtra. The Company has shifted its registered office from 156 Shiv Shakti Industrial Estate, III Phase, Andheri Kurla Road, Andheri (East), Mumbal - 400 059 with effect from June 11, 2002. The Company had earlier shitted its registered office with effect from September 24,2001 from 5A Nandjyot Industrial Estate, Mohili Village, Andheri Kurla Road, Andheri (E), htambai - 59 to 156 Shiv Shakti Industrial Estate, III Phase, Andheri Kurla Road, Andheri (East). Mumbai - 400 059, Telephone No.: +91 22 2859 2703 Fax: :- 91 22 2850 6115,
Email: ipo@mudralifestyle.com.   Website:www.mudralifestyle.com,
Compliance Officer: Mr. Mahesh K. Poddar Corporate office: 5129-41, D-wing, 5th Floor. Oberoi Garden Estates, Chandivali Farms Road. Chandivaii. Andheri (E), Mumbai - 400 072.

BASIS OF ALLOCATION

Public Issue of Mudra Lifestyle Limited (hereinafter called 'the Company') made a Initial Public Offer of 9,580,000 Equity Shares ef Rs. 10/- each at a premium of Rs. 80/- per share i.e. at a price of Rs. 90/- per share for cash aggregating to Rs. 862.20 Million comprising reservation of 4,79,000 Equity snares for eligible employees an a competitive Basis. Net offer to Public of 9,101,880 Equity Shares vide Red Herring Prospectus dated January 23, 2007. The Issue opened for subscription on February 8, 2007 and closed for subscription on February 14, 2007. The Issue Price is 9 times the face value.

The Company has offered 95,80,000 Equity Shares of Rs. 10/- at the premium of Rs. 80/- per share, to the public in terms of the Prospectus dated 20^a February 2007, of which 4,79,000 Equity Shares were reserved for Eligible Employees of the company.

The Company received 29,013 applications for 43,152,615 Equity Shares. Of which valid applications were 27,235 for 39,053,210 Equity Shares. Of the total valid applications received, 27,087 applications were in retail category for 8,914,290 Equity Shares, 73 applications in Non-retail category for 1,612,940 Equity Shares, 44 applications in Eligible Employees Category for 214,830 Equity Shares arid 31 applications in QIB Category for 28,311.150 Equity Shares.

The public issue was oversubscribed by 2.58 times in case of Retail Category, 1.18 times in case of Non-Retail Category and 6.22 times in case of QIB Category. The public issue was subscribed at 0.44 times in case of Eligible Employees category.

As per aforesaid prospectus, under subscription of 264,170 Equity Shares in the Eligible Employees category was spilled over for allotment to Retail Category.

In terms of the aforesaid Prospectus and also as per the guidelines issued by SEBI, not less than 35% of the net offer to the Public shall be available for allotment to Retail Individual Bidders and 15% of the net offer to Public shall be available for allotment to Non-Institutional Bidders and the remaining 50% of the net offer to the Public shall be available for allotment to QIB's (Qualified Institutional Bidders). However, based on the ratio of valid applications received in each category to the total valid applications received, 3,449,520 Equity Shares(including 264,170 Equity Shares spilled over for Eligible Employees Category) is made available for allotment to Retail Bidders, 1,365,150 Equity Shares is made available for Non-retail Bidders (i.e Non-Institutional Bidders), 214,830 Equity Shares to Eligible Employees and 4,550,500Equity shares to QIB Bidders.
As required under the listing agreement, the basis of allotment has been approved by the designated stock exchange i.e. Bombay Stock Exchange Limited, on 28th February 2007.

The Issue received 29,013 applications for 43,152,615 equity shares resulting in 4.07 times subscription. The details of the valid applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investors categories are as under (After technical rejections):

Final Demand
The final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Ltd. on February 28, 2007.

A. Allocation to Retail investors
The Basis of Allocation to the Retail Investors, who have bid at cut-off or at the issue Price of Rs 90/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 2.58 times. The total number of shares allotted in this category is 3,449,520 Equity Shares. The category-wise details of the Basis of Allocation are as under:

B) Allocation to Non institutional Investors
The Basis of Allocation to the Non institutional, who have bid at the Issue Price of Rs 90/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 1.18 times. The total number of shares allotted in this category is 4,550,500 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under:

C. Allocation to Qualified Institutional Buyers
Allocation to QIBs have been done on a proportionate basis in consultation with the Bombay Stock Exchange Limited. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (227,525) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (4,322,975) on proportionate basis. Mutual Funds were allotted 15.10% for QIB segment and other QIB applicants were allotted 84.90% of the shares for QIB segment.

The Board of the Company, at its Meeting held at Mumbai on February, 2007 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.
The Refund Orders and allotment advice and notice has 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 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 National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would bo hosted on the website of Registrars to the Issue, Bigshare Services Pvt. Ltd. at www.bigshareonline.com
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, DPID, Client ID 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:

BIGSHARE SERVICES PVT. LTD.
E2/3 Ansa Industrial Estate, Saki Vihar Road, Saki Naka, Andheri East, Mumbai 400 077
Tel: +91 22 2847 0652, Fax: +91 22 2847 5207,
Email: ipo@bigshareonline.com. Website: www.bigshareonline.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 MUDRA LIFESTYLE LTD.