REC IPO Basis of Allotment

Rural Electrification Corporation Limited

_{A Government of India Enterprise}

(Incorporated on July 25,1969 under the Companies Act, 1956 as a private limited company. The word private was deleted from the name of the Company on June 3,1970. The Company became a deemed public limited company with effect from July 1, 1975. The Company converted Into a public limited company with effect from July 18,2003)
Registered and Corporate Office: Core 4, SCOPE Complex, 7, Lodhl Road, New Delhi 110 003, Tel: +91 11 2436 7305. Fax: +91 11 2436 2039. E-mail: ipo@recl.nic.in. Website: www.recindia.nic.in

THE FACE VALUE PER EQUITY SHARE IS RS.10. THE ISSUE PRICE PER EQUITY SHARE IS RS.105 AND IT IS 10.5 TIMES THE FACEVALUE.

The Issue was made through the 100% Book Building Process wherein at least 60% 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, up to 10% of the Issue was to be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the Issue was to 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 753,768 applications for 4,271,403,354 Equity Shares resulting In 27.35 times subscription. The details of the applications received In the Issue from QIBs, Non-Institutional Investors, Retail Individual Investors and Eligible Employees 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 March 5, 2008.

A. Allocation to Eligible Employees (After Technical Rejections)
The Basis of Allocation to the Eligible Employees, who Bid at Cut Off Price or at the Issue Price of Rs.105 per Equity Share, was finalized in consultation with the NSE. The category was subscribed to the extent of 0.905304 times. The spill over portion of 369,600 Equity Shares has been added to QIB / HNI / Retail categories in the ratio of 60/10/30 basis. The total number of Equity Shares allotted in this category is 35,33,400 Equity Shares to 510 successful applicants. The category-wise details of the Basis of Allocation sample are as under:

B.Allocation to Retail individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at Cutoff Price or at the Issue Price of Rs.105 per Equity Share, was finalized in consultation with the NSE. This category has been over-subscribed to the extent of 7.422674 times. The spill over portion of 1,10,880 shares from the Employee Reservation category has been added to this category. The total number of Equity Shares allotted in this category is 4,57,75,980 Equity Shares to 5,02,877 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.105 per Equity Share, was finalized In consultation with the NSE. This category has been oversubscribed to the extent of 21.745835 times. The spill over portion of 36,960 shares from the Employee Reservation category has been added to this category. The total number of Equity Shares allotted in this category is 15,258,660 Equity Shares to 1,557 successful applicants. The category-wise details of the Basis of Allocation sample are as under:

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with the NSE. Since the Employee Reservation category was under-subscribed, the spill over portion of 2,21,760 shares from the Employee Reservation category has been added to this category. As per the SEBI Guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available and the spill over portion from the above category (45,77,598) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares and the spill over portion from the above category (8,69,74,362) on proportionate basis.

The Board of Directors of the Company at its Meeting held at Hyderabad on 5th March, 2008 has approved the basis of allocation of shares of the Issue and has allotted the 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 depositories concerned. 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
The details of the allocation made would be hosted on the website of the Registrar to the Issue, Karvy Computershare Private Limited at http://kcpl.karvy.com

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:

Karvy Computershare Private Limited
Unit: REC
Plot No. 17 to 24, Vitharao Nagar, Hitech City Road, Madhapur
Hyderabad - 500081,
Fax: 040-23420814 Email: einward.ris@Karvy.com

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