NMDC FPO Basis of Allotment

NMDC Limited

(Our Company was originally incorporated in Delhi on November 15, 1958 under the name 'National Mineral Development Corporation Private Limited'.
Presently, the Registered Office of the Company Is situated at Hyderabad, Andhra Pradesh.
For details of the change in the name and registered office of our Company, see "History and Certain Corporate Matters" on page 105 of the Prospectus.
Registered and Corporate Office : Khanij Bhavan, 10-3-311/A, Castle Hills, Masab Tank, Hyderabad - 500 173, Andhra Pradesh.
Tel: +91 40 2353 8757 Fax: +91 40 2353 8711 Website: www.nmdc.com. Company Secretary and Compliance Officer: Mr. Kumar Raghavan

BASIS OF ALLOTMENT

FURTHER PUBLIC OFFER OF 332,243,200 EQUITY SHARES OF RE. 1 EACH (THE "OFFER SHARES") OF NMDC LIMITED ("NMDC" OR "OUR COMPANY" OR "THE COMPANY") THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF STEEL, GOVERNMENT OF INDIA (THE "SELLING SHAREHOLDER") FOR CASH AT A PRICE DETERMINED BY THE BOOK BUILDING PROCESS UNDER SCHEDULE XI OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009, AS AMENDED (THE "SEBI REGULATIONS") AGGREGATING UPTO RS. 99,304.46 MILLION (THE "OFFER"). THE OFFER COMPRISED A NET OFFER TO THE PUBLIC OF 330,500,000 EQUITY SHARES (THE "NET OFFER") AND A RESERVATION OF 1,743,200 EQUITY SHARES FOR PURCHASE BY ELIGIBLE EMPLOYEES. THE OFFER CONSTITUTED 8.38% OF THE POST OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

THE FACE VALUE OF THE EQUITY SHARES IS RE. 1 EACH
THE OFFER PRICE IS RS.300 AND IS 300 TIMES THE FACE VALUE OF THE EQUITY SHARES. A DISCOUNT OF 5% TO THE OFFER PRICE DETERMINED PURSUANT TO THE COMPLETION OF THE BOOK BUILDING PROCESS WAS OFFERED TO RETAIL INDIVIDUAL BIDDERS AND ELIGIBLE EMPLOYEES ("RETAIL AND EMPLOYEE DISCOUNT").

The Offer was made through the 100% Book Building Process wherein upto 50% of the Net Offer was available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was made available for allotment to mutual funds). Further, not less than 15% of the Net Offer was made available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net offer was made available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Offer Price. Approximately 0.52% of the Offer, or 1,743,200 Equity Shares, were reserved for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids being received at or above the Offer Price.

The Offer received 165,292 applications for 412,969,926 equity shares resulting in 1.24 times subscription. The details of the applications received in the Offer from Qualified Institutional Buyers, Non-Institutional Investors, Retail Individual Investors and Employees are as under: (Before 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 Limited ("BSE") on 25.03.2010.

A. Eligible Employees (after technical rejections) (Including ASBA Applications)
The Basis of Allocation to the employees of NMDC, who have bid at cut-off or above the Offer Price of Rs.300/- per Equity Share (5% discount on the offer price was given to the employees and hence the offer price for this category is Rs.285/- per Equity Share), was finalized in consultation with BSE. The total number of shares allotted in this category is 99900. The undersubscribed portion of 1643300 equity shares have been spilled over to QIBs, Non-Institutional Bidders and Retail Individual Bidders Categories in the ratio of 50 : 15 : 35.

B. Allocation to Retail Individual Investors (After Technical Rejections) (Including ASBA Applications)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or above the Offer Price of Rs.300/- per Equity Share, was finalized in consultation with BSE (5% discount on the offer price was given to the retail individual investors and hence the offer price for this category is Rs.285/- per Equity Share). This category has been subscribed to the extent of 0.21 times and hence allotment was done on full and firm basis to all valid applicants. There were 31,901 applications for 40,81,680 equity shares made under ASBA process. 31,821 applications for 40,73,160 equity shares were found valid and they were considered for allotment on full and firm basis. The total number of shares subscribed and allotted in Retail Individual Investor category is 2,44,66,960 Equity Shares which were allotted to 1,62,101 successful applicants. The unsubscribed portion of 9,17,83,195 equity shares have been added to QIB Category.

C. Allocation to Non Institutional Investors (After Technical Rejections) (Including ASBA Applications)
The Basis of Allocation to the Non-Institutional Investors, who have bid at or above the Offer Price of Rs.300/- per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent of 0.20 times and hence allotment was done on full and firm basis to all valid applicants. Overall 392 applications for 10051380 equity shares were found valid and they were considered for allotment on full and firm basis. The undersubscribed portion of 3,97,70,115 equity shares have been added to QIB Category.

D. Allocation to QIBs
The Basis of Allocation to the QIBs, who have bid at or above the Offer Price of Rs.300/- per Equity Share, was finalized in consultation with BSE.

131553310 equity shares being the unsubscribed portion of other categories were added to the QIB category. Allocation to QIBs has been done on a proportionate basis in consultation with BSE. The demand from Mutual Funds was 5847980 equity shares. The same was less than 5% of the shares available for QIB Category and hence all these Mutual funds were allotted shares on a full and firm basis. The remaining 29,17,76,980 shares were allotted on a proportionate basis to other QIBs.

The Offer Committee of the company at its meeting held at Hyderabad on 25.03.2010 has taken on record the basis of allocation of shares approved by the designated Stock Exchange viz., The BSE has authorized the Corporate Action for the transfer 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 allocated to successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Equity Shares are available for trading on the BSE and the National Stock Exchange of India Ltd.

INVESTORS PLEASE NOTE
The details of the allocation made would be hosted on the website of Registrar to the Offer, Karvy Computershare Private Limited at http://karisma.karvy.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer 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:

Karvy Computershare Private Limited
Unit: NMDC LTD :Plot No. 17-24 Vittal Rao Nagar, Madhapur, Hyderabad 500 081,
Andhra Pradesh, India. Tel: +91 40 2342 0815, Fax: +91 40 2343 1551, E-mail: nmdc.ipo@karvy.com