Servalakshmi IPO Basis of Allotment

Our Company was originally Incorporated on November 03,2005 under the Companies Act, 1956 as 'SRI SAI SHAKTHI RAAM PAPERS PRIVATE LIMITED' vide Certificate of Incorporation issued by the Registrar of Companies, Coimbatore, Tamil Nadu. The name of our company was changed to 'SERVALAKSHMI PAPER PRIVATE LIMITED' on January 31, 2007. Our Company was later converted into a public company and the name was changed to 'SERVALAKSHMI PAPER LIMITED, pursuant to a shareholders resolution dated April 30,2010 and received a Fresh Certificate of Change of Name on June 17,2010.

The Corporate Identity Number of the Company is 'U21012TZ2005PLC012260'.
Registered Office: 31 (Old No. 10-Z), Bharathi Park, VII Cross, Saibaba Colony, Coimbatore-641 011, Tamil Nadu, India
Tel: +91-422-4333344; Fax: +91-422-4333355
Contact Person: Mrs. Praveena Dhanagopal, Company Secretary & Compliance Officer
E-mail: secretarial@servalakshmi.in; Website: www.servalakshmi.in

PUBLIC ISSUE OF 2,06,89,656 EQUITY SHARES OF RS. 10/- EACH ('EQUITY SHARES') OF SERVALAKSHMI PAPER LIMITED (THE 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF RS. 29/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS.19/- PER EQUITY SHARE), AGGREGATING TO 7 6,000.00 LACS (THE 'ISSUE'). THE ISSUE WOULD CONSTITUTE 47.99 % OF THE POST ISSUE PAID-UP CAPITAL OF THE COMPANY. THE ISSUE PRICE OFTHE EQUITY SHARES IS RS. 29/- EACH AND IS 2.9 TIMES THE FACE VALUE.

The Issue is made through the 100% Book Building Process wherein upto 50% of the Issue shall be allocated on a proportionate basis to eligible Qualified Institutional Buyers, out of which 5% of the Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all eligible Qualified Institutional Buyers, including Mutual Funds, subject to valid Bids being received at or above Issue Price. Further, not less than 15% of the Issue shall be made available for allocation on a proportionate basis to Non- Institutional Bidders and not less than 35% of the Issue shall be made available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.

The Issue received 3,806 valid applications for 2,08,56,200 equity shares resulting in 1.0080 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investor are as detailed hereunder: (after technical rejections)

Final Demand
A summary of final demand as per BSE and NSE as on Bid/Issue Closing Date at different bid prices is as detailed hereunder:

A. Allocation to Retail Individual Investors (After Technical Rejections)

The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 29/- per Equity Share, was finalized in consultation with BSE. The unsubscribed portion of 65,51,428 equity shares in QIB category has been added back in the ratio of 30:70 to Non Institutional Investor (Nil) and Retail Individual Investor category respectively. Accordingly 45,86,000 equity shares were added back for allocation to Retail Individual Investor category portion of 72,41,380 equity shares in terms of the Red Herring Prospectus. Thus total shares available for allotment to retail category are 1,18,27,380 equity shares. The company received 3,730 valid applications for 75,60,800 equity shares in this category. ALL THE VALID BIDDERS / APPLICANTS IN THIS CATEGORY HAVE BEEN ALLOTTED SHARES ON FULL AND FIRM BASIS. The balance 42,66,580 equity shares have been added to Non Institutional category.

B. Allocation to Non Institutional Investors (After Technical Rejections)

The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs. 29/- per Equity Share, was finalized in consultation with BSE. The unsubscribed portion of 65,51,428 equity shares in QIB category has been added back in the ratio of 30:70 to Non Institutional Investor (Nil) and Retail Individual Investor category respectively. Accordingly 19,65,428 equity shares from QIB category and 42,66,580 equity shares from Retail category were added back for allocation to Non Institutional Investor category portion of 31,03,448 equity shares in terms of the Red Herring Prospectus. Thus total shares available for allotment to non institutional category are 93,35,456 equity shares. The company received 72 valid applications for 95,02,000 equity shares in this category. All the valid bidders / applicants in this category have been allotted shares on proportionate basis. The category-wise details of the Basis of Allotment are (Sample) under:

C.Allocation to QIBs

Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI regulations, Mutual Funds and other QIBs were allocated the available shares (3,793,400 Equity Shares) on proportionate basis. The under subscribed portion of 6,551,428 equity shares have been spilled overto Non-Institutional and Retail Category in the ratio of 30:70. The summary allotment is as under:

The IPO Committee of the company at it's Meeting held on May 07, 2011, has taken on record the basis of allocation of shares approved by the Designated Stock Exchange viz., Bombay Stock Exchange Limited ('BSE'), Mumbai and have approved the allotment of equity shares. Accordingly the committee has authorized the Corporate Action for the transfer of the shares to various successful applicants.

The Allotment Advice-cum-Refund Orders and allotment advice and/ or notices are being 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 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 BSE & NSE.

All future correspondence in this regard may kindly be addressed to the Registrars 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, place where the bid was submitted and payment details at the address given below:

LINK INTIME INDIA PRIVATE LIMITED
C-13, Pannalal Silks Mills Compound, L.B.S. Marg,
Bhandup (West), Mumbai 400 078
Tel.: +91 22 2596 0320, Fax: +91 22 2596 0329
Email ID: spl.ipo@linkintime.co.in
Contact Person: Mr. Sachin Achar

Toll Free-Helpline number: 1-800-22-0320