Muthoot IPO Basis of Allotment

Muthoot Finance Limited

Our Company was originally incorporated as a private limited company on March 14,1997 under the provisions of the Companies Act, 1956, with the name "The Muthoot Finance Private Limited". Subsequently, by a fresh certificate of incorporation dated May 16,2007, our name was changed to "Muthoot Finance Private Limited". Our Company was converted into a public limited company on November 18,2008 with the name "Muthoot Finance Limited" and received a fresh certificate of incorporation consequent to change in status on December 02,2008 from the Registrar of Companies, Kerala and Lakshadweep. For further details regarding changes to the name and registered office of our Company, see section titled "History and Certain Corporate Matters" on page 124 of the Prospectus.

Registered and Corporate Office: Muthoot Chambers, Opposite Saritha Theatre Complex, 2nd Floor, Banerji Road, Kochi 682 018, India. Tel: (91 484) 239 4712; Fax: (91 484) 239 6506. Company Secretary and Compliance Officer: Rajesh A.; Tel: (91484) 353 5533;
Fax: (91 484) 239 6506;

PROMOTERS: M.G. GEORGE MUTHOOT, GEORGE THOMAS MUTHOOT, GEORGE JACOB MUTHOOT AND GEORGE ALEXANDER MUTHOOT

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 51,500,000 EQUITY SHARES OF FACE VALUE RS. 10 EACH (THE "EQUITY SHARE") FOR CASH AT A PRICE OF RS. 175 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 165 PER EQUITY SHARE, AGGREGATING UP TO RS. 9,012.50 MILLION (THE "ISSUE") BY MUTHOOT FINANCE LIMITED (THE "COMPANY OR THE "ISSUER"). THE ISSUE WILL CONSTITUTE 13.85% OF THE FULLY DILUTED POST ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

THE ISSUE PRICE IS 17.5 TIMES THE FACE VALUE OF THE EQUITY SHARES.

The Company, in consultation with the BRLMs and CBRLM, has decided not to offer any discount on the Issue Price to Retail Individual Bidders.
The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ("NSE") and the trading will commence on May 06, 2011.

This Issue has been made for less than 25% of the post-Issue share capital pursuant to Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulations 26(1) and 41 (1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended ("SEBIICDR Regulations"). Further, this Issue has been made through the Book Building Process wherein not more than 50% of the Issue was available for allocation to Qualified Institutional Buyers ("QIBs") on a proportionate basis out of which 5% of the QIB Portion (excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only, and the remainder was 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. Further, not less than 15% of the Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Our Company has allocated 30% of the QIB Portion to the Anchor Investors on a discretionary basis. One third of the Anchor Investor Portion was reserved for allocation to domestic Mutual Funds, subject to valid bids being received from domestic Mutual Funds at or above the Anchor Investor Issue Price. Bidders (except Anchor Investors) were allowed to participate in this Issue through the ASBA process by providing the details of the bank accounts in which the corresponding Bid Amounts had to be blocked by the SCSBs. For further details, see section titled "Issue Procedure" on page 336 of the Prospectus.
The Board of Directors of the Company wishes to thank all the investors for their response to the Issue, which opened for subscription on Monday, April 18,2011 and closed on Thursday, April 21,2011. The Anchor Investors Bidding date was April 15,2011.

The Issue received 265,018 applications for 1,078,895,200 equity shares resulting in 20.9494 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investor and Anchor Investors are as under: (Before technical rejections)

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

The Basis of Allocation was finalized on May 02, 2011 in consultation with the Bombay Stock Exchange Limited ("BSE"), the Designated Stock Exchange for the issue.

A. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off Price or at the Issue Price of Rs. 175 per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 8.3534 times. The total number of shares allotted in Retail Individual Investor category is 18,025,000 Equity Shares to 196,573 successful applicants.The category-wise details of the Basis of Allotment are (sample) as under:

B. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs. 175 per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 60.6026 times. The total number of equity shares allotted in this category is 7,725,000 equity shares to 551 successful applicants. The category-wise details of the Basis of Allotment are (Sample) under

C. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI regulations, Mutual Funds were initially allocated 5% of the quantum of shares available (901,250 Equity Shares) and other QIBs were allocated the remaining available shares (17,123,750 Equity Shares) on proportionate basis.

D. Allocation to Anchor Investors
Allocation to Anchor Investors has been done on a discretionary basis in consultation with BRLMs and CBRLM. As per the SEBI regulations, 30% of QIB Reservation (7,725,000 Equity Shares) was allocated to Anchor investors.

The Board of Directors of the Company at it's Meeting held on May 03,2011, after taking on record the basis of allocation of shares approved by the Designated Stock Exchange viz., Bombay Stock Exchange Limited ("BSE"), Mumbai, of the Issue, has approved the allotment of equity shares and has authorized the Corporate Action for the credit of the shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and/ or 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 Account 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 filed the listing applications for Equity Shares with BSE and NSE on May 04,2011 and received the listing approvals from BSE and NSE on May 04,2011. The dispatch of refund orders, as applicable, has been completed on May 04,2011, the dispatch of allotment advice to the allottees will be completed on May 06,2011, and the refund instructions to the Clearing system / instruction to Self Certified Syndicate Banks were given on May 03,2011. The credit instructions to the Central Depository Services (India) Limited and the National Securities Depository Limited in respect of allotment of Equity Shares in dematerialized form was completed on May 04,2011. The Company received the trading approvals from BSE and NSE on May 04,2011 for dealing in the Equity Shares with effect from May 06,2011.

INVESTORS PLEASE NOTE
These details of the allocation made would be hosted on the website of Registrar to the Issue, Link Intime India Private Limited at their Website: www.linkintime.co.in

All future correspondence in this regard may kindly be addressed to the Registrar 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
Tel.: +91 22 2596 0320, Fax: +91 22 2596 0329, Email ID: mfl.ipo@linkintime.co.in