Punjab & Sind Bank IPO Basis of Allotment

(This is only an advertisement for Information purposes not for publication or distribution, directly or indirectly outside india, and not a prospectus announcement.)

PUNJAB & SIND BANK

Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Bank Acquisition Act) on April 15,1980. The Bank was incorporated on June 24,1908, as The Punjab and Sind Bank Limited', with its registered office at Hall Bazar, Amritsar, Punjab, India. The Bank was nationalised under the Bank Acquisiton Act on April 15,1980 and its name was changed to 'Punjab & Sind Bank'. For details of changes in the head office of the Bank, see 'History and Certain Corporate Matters' on page 134 of the Prospectus. Head Office: 'Bank House', 21, Rajendra Place, New Delhi 110 008, India Tel: (+91 11) 2572 0849 Fax: (+91 11) 2578 1639. Contact Person and Compliance Officer: Mr. A.P.S. Teji Tel: (+91 11) 2581 2922 Fax: (+91 11)2581 2922 E-mail: complianceofficer@psb.org.in
Website: www.psbindia.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 4,00,00,000 EQUITY SHARES OF RS. 10 EACH (THE 'EQUITY SHARES') FOR CASH AT A PRICE OF RS.120* PER EQUITY SHARE OF PUNJAB & SIND BANK ('THE BANK' OR 'THE ISSUER') AGGREGATING RS. 470.82 CRORE (THE 'ISSUE'). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 3,80,00,000 EQUITY SHARES (THE 'NET ISSUE') AND A RESERVATION OF 20,00,000 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED IN THE RED HERRING PROSPECTUS AND THE PROSPECTUS) (THE 'EMPLOYEE RESERVATION PORTION'), AT THE ISSUE PRICE. THE ISSUE SHALL CONSTITUTE 17.93% OF THE POST-ISSUE SHARE CAPITAL OF THE BANK. THE NET ISSUE SHALL CONSTITUTE 17.04% OF THE POST-ISSUE SHARE CAPITAL OF THE BANK.

Issue opened on December 13,2010. Issue closed on December 15,2010 for QIB Bidders and on December 16,2010 for Non QIB Bidders

THE FACE VALUE OF THE EQUITY SHARES IS RS 10 EACH. THE ISSUE PRICE IS RS 120* AND IS 12.0 TIMES THE FACE VALUE OF THE EQUITY SHARES.

Discount of Rs. 6, i.e. 5% to the Issue Price was offered to Retail Individual Bidders 'Retail Discount') and Eligible Employees (the 'Employee Discount'), respectively. The excess amount paid at the time of Bidding shall be refumled to Retail lndividual Bidaers and Eligjble Employees within 12 working days of the Bid/issue closing date.

Promoter: The President of India, acting through the Ministry of Finance, Government of India

The Equity Shares of the Bank 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 December 30,2010.
In terms of Rule 19(2)(c) of the Securities Contracts (Regulation) Rules, 1957, as amended, (the 'SCRR') as applicable to public sector undertakings, this being an Issue for at least 10% of the post-Issue paid up equity share capital, the Issue is being made through the Book Building Process wherein up to 50% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (the 'QIB Portion'). Further 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. Further, not less than 15% of the Net Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Further, 20,00,000 Equity Shares shall be made available for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids being received at or above the Issue Price.
The Issue received 699,882 applications for 2,014,647,800 equity shares resulting in 50.3662 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders, Retail Individual Bidders and Eligible Employees categories are as under: (Before Technical Rejections)

Final Demand
The final demand at different bid prices as per the electronic bid files provided by the Exchanges is as under:

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ('BSE') on December 27, 2010.

A. Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at cut-off or at the Issue Price of f 120 per Equity Share (RS 6 discount on the Issue Price was given to the employees on allotment and hence the net issue price for this category is RS 114 per Equity Share), was finalized in consultation with BSE. This category has been over subscribed to the extent of 1.5608 times (after technical rejections). The total number of shares allotted in Employee category is 20,00,000 Equity Shares to 6,289 successful applicants. The category-wise details of the Basis of Allotment are (sample) as under

B. Allocation to Retail Individual Bidders (After Technical Rejections)
The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of RS 120 per Equity Share (RS 6 discount on the Issue Price was given to the Retail Individual Bidders and hence the net issue price for this category is RS 114 per Equity Share), was finalized in consultation with BSE. This category has been oversubscribed to the extent of 43.2014 times (after technical rejections). The total number of shares allotted in Retail Individual Bidders category is 13,300,000 Equity Shares to 266,000 successful applicants. The category-wise details of the Basis of Allotment are as under:

C. Allocation to Non-Institutional Bidders (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Bidders, who have bid at at the Issue Price of RS 120 per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 85.1597 times (after technical rejections). The total number of equity shares allotted in this category is 5,700,000 equity shares to 818 successful applicants. The category-wise details of the Basis of Allotment are (Sample) as under:

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. In accordance with the SEBI (ICDR) Regulations, Mutual Funds were initially allocated 5% of the quantum of shares available (950,000 Equity Shares), and other QIBs were allocated the remaininq available shares (18,050,000 Equity Shares) on proportionate basis.

The Board of Directors of the Issuer at its Meeting held on December 27,2010 has taken on record the basis of allocation of shares approved by the Designated Stock Exchange viz., Bombay Stock Exchange Limited ('BSE') and has authorized the Corporate Action for the transfer of the shares to various successful applicants. The refund order and allotment advice and/ or notices have been dispatched to the address of the investors as registered with the depositories, on or prior to December 28,2010. 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 are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. Further, the instructions to Self Certified Syndicate Banks have been dispatched / mailed on December 27,2010. The Bank has filed listing applications with the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE) vide letters dated December 28,2010.

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 on 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, 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: +9122 2596 0320, Fax: +9122 2596 0329. E-mail ID: psb.ipo@linkintime.co.in

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF PUNJAB & SIND BANK,

Punjab & Sind Bank is proposing to make, subject to market conditions and other considerations, a public offer of securities and has filed a Prospectus with the Securities & Exchange Board of India ('SEBI'), the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited. The Prospectus is available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the book running lead managers at www.enam.com, www.sbicaps.com and www.icicisecurities.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled 'Risk Factors' of the Prospectus. This advertisement does not constitute an offer of securities for sale or the solicitation of any offerto buy securities in any jurisdiction, including the United States. Securities may not be offered or sold in the United States absent registration under theU.S. Securities Act of 1933, as amended (the 'US Securities Act'), or an exemption therefrom. The Equity Shares have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. The Equity Shares are being offered and sold only outside the United States in compliance with Regulation S under the U.S. Securities Act and the applicable laws of each jurisdiction where such offers and sales occur. No money, securities or other consideration from any person inside
the United States is being solicited and, if sent in response to the information contained in this advertisement, will not be accepted.