Pochiraju IPO Basis of Allotment

POCHIRAJU INDUSTRIES LIMITED

(Originaiiy incorporated as Pochiraju Flori-Tech Limited on May 04,1995 with Registrar of Companies Tamil Nadu, Chennai. The certificate for commencement of business was received on June 05,1995. The name of the company was changed to Pochiraju Industries Ltd. and fresh Certificate of incorporation was obtained on September 10. 2003 from Registrar of Companies, Coimbatore)
Registered Office: 1/102, Sathya Mangalam Village, Bagalur-Berigai Road, Thummanapalli Post, Hosur Taluk, Krishnagiri District, Tamil Nadu. Tel: +91-04344-254988 Fax Me.: +91-04344-255044
Corporate Office: 130, Amariyothi Layout, 2nd Main Road, Intermediate Ring Road, Domaluru, Bangalore - 560071.
Tel: +91-080,32518577; Telefax: +91-080-41118577
Website: E-mail: pochirajuflori@hotmail.com, Contact Person: Mr.P. Sudhakar, Compliance Officer

BASIS OF ALLOTMENT

ISSUE OF 125,34,625 EQUITY SHARES OF RS 10 EACH FOR CASH AT A PRICE OF RS. 30 PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS, 20 PER SHARE) AGGREGATING RS. 3760 LACS AND NET ISSUETO PUBLIC OF 1,15,34,625 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 30 PER EQUITY SHARE AGGREGATING RS.3460 LACS ('NET ISSUE'). THE ISSUE WILL CONSTITUTE 69.96 % OF THE FULLY DILUTED POST-ISSUE PAID-UP CAPITAL OF POCHIRAJU INDUSTRIES LIMITED (^-COMPANY' OR'ISSUER').

The Issue made through the 100% Book Building Process wherein not more than 50% of the Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs°) (including 5% of the QIB portion that was to specifically be allotted to mutual funds)., Further, not less than 15% of the Net issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue to the public shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 27,740 applications for 4,77,93,500 equity shares resulting in 4.52 times subscription.

The Basis of'Allotment for all the categories namely Retail Individual Investors, Non Institutional Investors and Qualified Institutional Buyers was approved by Bombay Stock Exchange Limited (Designated Stock Exchange) on January 31, 2007. The Board of Directors of the Company at its Meeting held at Coimbatore, on February 1, 2007, allotted the Equity Shares to the successful applicants. Details of valid applications received and allotments done are as under:

Public Issue

9 excess equity shares have been alloted in non istituational investors category and 11,279 excess equity shares have been alloted in Retail category due to rounding off.

A. Allotment to Retail Investors (AfterTechnlcai Rejections)

All the bidders in the Retail Investors, who have bid at cut-off or at the Issue Price of Rs. 301- per Equity Share, have been considered while preparing the basis of allotment. The category was over subscribed 6.74 times. The total number of shares allotted in this category is 40,44,446 Equity Shares. The category-wise details of the Basis of allotment are as under:

B. Non institutional Investors (After Technical Rejection)
All the bidders in the Non Institutional Category, who have bid at the Issue Price of Rs. 30/- per Equity Share, have been considered while preparing the basis of allotment. The category was subscribed 3.65 times. The total number of shares allotted in this category is 17,28,509 Equity Shares.

All the applicants in this category have been given firm allotment on proportionate basis inverse to the over subscription ratio.

C. Allotment to QlBs
The total number of Equity Shares allotted in this category are 57,61,670 Equity Shares (50% of total Equity Shares allotted). All the applicants in this category have been given Firm Allotment on a PROPORTIONATE BASIS.

Refunds have been made through ECS, Direct credit, RTGS and NEFT, into the Bank Accounts of the applicants, as registered with the depositories, for applicants residing at any of the 15 centres specified by SEBI. For other applicants Refund Orders have been despatched to their address as registered with the depositories. In case the same is not received within ten days, applicants may contact at the address given below. ECS Intimation Note and Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants have been credited to their beneficiary accounts.

The company is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allotment.

INVESTORS PLEASE NOTE
This details of the allotment made would be hosted on the website of Registrars to the Issue, Aarthi Consultants Private Limited at www.aarthiconsultants.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, 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:

Aarthi Consultants Private Limited
1-2-285, Domaiguda, Hyderabad-500029.
Tel: +91-40-2763 4445/8111, Fax: +91-40-2763 8111
Website: www.aarthiconsultants.com, Email: pochiraju@aarthiconsultants.com
Contact Person: Mr. Bhaskar

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 POCHIRAJU INDUSTRIES LIMITED.