Power Grid IPO Basis of Allotment

POWER GRID CORPORATION OF INDIA LIMITED

(Incorporated on October 23,1989 under the Companies Act, 1956 as a public limited company.
The name of our company was changed from National Power Transmission Corporation Limited to
Power Grid Corporation of India Limited w.e.f October 23,1992.)
Regd. Office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi -110 016.
Tel:+91-11- 2656 0112, Fax:+91-11-2656 4849.
Corp. Office: 'Saudamini', Plot No.2, Sector 29, Gurgaon - 122 001,
Tel:+91-124- 2571 700, Fax:+91-124-2571 848
E-mail: investors@powergridindia.com Website: www.powergridindia.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF UP TO 57,39,32,895 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 52/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 42/- PER EQUITY SHARE) AGGREGATING TO RS 29,844.51 MILLION (REFERRED TO AS 'THE ISSUE'). THE ISSUE COMPRISED A FRESH ISSUE OF UP TO 38,26,21,930 EQUITY. SHARES BY POWER GRID CORPORATION OF INDIA LIMITED ('COMPANY' OR 'ISSUER'). AND AN OFFER FOR SALE OF UP TO 19,13,10,965 EQUITY SHARES BY THE PRESIDENT OF INDIA ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA. THE ISSUE COMPRISED A NET ISSUE TO THE PUBLIC OF UP TO 55,99,54,895 EQUITY SHARES AND A RESERVATION OF UP TO 1,39,78,000 EQUITY SHARES FOR SUBSCRIPTION BY EMPLOYEES OF THE COMPANY. THE ISSUE CONSTITUTES APPROXIMATELY 13.64% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF POWER GRID CORPORATION OF INDIA LIMITED.

THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 52/-. THE ISSUE PRICE IS 5.2 TIMES THE FACE VALUE.
The Issue made through the 100% Book Building Process wherein at least 50% of the Net Issue 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 Issue was to be allocated on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue was to be allocated on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.
The Issue received 12,59,949 applications for 3702,43,77,933 equity shares resulting in 64.50 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investor and Employee categories are as under: (Before technical rejections)

Final Demand
A sample of the final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited ('NSE') on September 26, 2007.

A.Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at the Issue Price of Rs. 52/- per Equity Share, was finalized in consultation with the NSE. The category was over subscribed 3.188824 times. The total number of Equity Shares allotted in this category is 13978000 Equity Shares to 4649 successful applicants. The category-wise details of the Basis of Allocation (Sampled are as under:

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who bid at cut-off or at the Issue Price of Rs.52/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 6.549691 times. The total number of shares allotted in this category is 19,59,84,213 Equity Shares to 9,28,299 successful applicants. The category-wise details of the Basis of Allocation are as under:

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non institutional Investors, who bid at the Issue Price of Rs.52/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 39.283587 times. The total number of shares allotted in this category is 83993234 Equity Shares to 4829 successful applicants. The category-wise details of the Basis of Allocation (Sample) are as under:

D.Allocatlon to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with the NSE. As per the SEBI Guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (1,39,98,873) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (26,59,78,575) on proportionate basis.

The Board of Directors of the Company at its Meeting held at Hyderabad on September 26, 2007 has approved the basis of allocation of Equity Shares in the Issue and has allotted the Equity Shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and 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 Mandate details as registered, if any, with the Depositories. The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the concerned Depositories. 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 the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrars to the Issue, Karvy Computershare Private Limited at http://kcpl.karvy.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:

Karvy Computershare Private Limited:
Unit: PGCIL: Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur Hyderabad - 500 081,
Fax: 040-23420814 Email: einward.ris@karvy.com

TOLL FREE - HELPLINE NUMBER 1-800-3454001

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 POWER GRID CORPORATION OF INDIA LIMITED.