Shipping Corporation FPO Basis of Allotment

Our Company was incorporated as Eastern Shipping Corporation Limited on March 24,1950 under the Companies Act, 1913 in Mumbai. With effect from October 2,1961, Western Shipping Corporation Limited was amalgamated with our Comoany under the Shipping Corporations Amalgamation Order, 1961, issued by the Government of India. The name of our Company was changed from Eastern Shipping Corporation Limited to The Shipping Corporation of India Limited on October 21,1961. Subsequently, for the purpose of listing in 1992, our Company was changed from a private company to a public company and received a fresh certificate of incorporation on February 18,1993. Registered Office: Shipping House, 245, Madame Cama Road, Mumbai 400 021. Company Secretary and Compliance Officer: Dipankar Haldar; Tel.: (9122) 2202 6666; Fax: (9122) 22026906; Website: www.shipindia.com; E-mail: cs@sci.co.in

BASIS OF ALLOTMENT

#Assuming full subscription in all the categories at the Issue Price and considering Retail Discount of 5% and Employee Discount of 5% to the Issue Price. However, the total Issue Size maybe required to be adjusted as a consequence of, inter alia, the Retail Discount and the Employee Discount and the actual subscription and Allotment in terms of the Basis of Allotment to be finalised in consultation with the Designated Stock Exchange.

"Discount of 5% to the Issue Price being Rs. 7 per Equity Share determined pursuant to completion of the Book Building Process has been offered to Eligible Employees (the "Employee Discount") and to Retail Individual Bidders (the "Retail Discount")

This issue has been made through the 100% Book Building Process wherein up to 50% of the Net Issue was to be allotted on a proportionate basis to Qualified Institutional Buyers ("QIBs" and such portion the "QIB Portion"). Further, 5% of the QIB Portion was to be available for Allotment on a proportionate basis to Mutual Funds only. The remainder was available for Allotment on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. In addition, not less than 15% of the Net Issue was available for Allotment on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue was available for Allotment on a proportionate basis to Retail Individual Bidders, subjectto valid Bids being received at or above the Issue Price. Further, 423,454 Equity Shares was available for Allotment on a proportionate basis to the Eligible Employees, subject to valid Bids being received from them at or abov the Issue Price.

The Issue received 308,888 applications for 406,795,350 Equity Shares resulting in 4.80 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders, Retail Individual Bidders and Employees are as under: (Before technical rejections)

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

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the National Stock Exchange of India Limited ("NSE") on December 13,2010.

A. Allotment to Employees (After Technical Rejections)
The Basis of Allotment to the Eligible Employees of the Company, who have bid at Cut-off Price or the Issue Price of Rs.140 per Equity Share (Discount of Rs. 7 for Eligible Employees on allotment) was finalized in consultation with NSE. The category has been subscribed for 0.12 times. There were a total of 159 applications for 65,650 Equity Shares made under the Employee category out of which 8 applications for 4,550 Equity Shares were made under ASBA process. A total of 126 applications for 52,000 Equity Shares were found valid and they were considered for allotment at a price of Rs.133/- per Equity Share. The under subscription in employee category has been spilled over to QIB, Retail and Non-Institutional category in the ratio of 50:35:15.

B. Allotment to Retail Individual Bidders (After Technical Rejections)
The Basis of Allotment to the.Retail Individual Bidders, who have bid at Cut-off Price or the Issue Price of Rs. 140 per Equity Share (Discount of Rs. 7 for Retail Individual Bidders on allotment), was finalized in consultation with NSE. This category has been subscribed to the extent of 6.25 times. There were a total of 308,395 applications for 187,183,150 Equity Shares out of which 88,125 applications for 46,573,850 Equity Shares were made under ASBA process. Of these 303,639 applications for 185,199,050 Equity Shares were found valid and they were considered for allotment at a price of Rs.133 per Equity Share. The total number of Equity Shares allotted in Retail Individual Bidders category is 29,623,556 Equity Shares which were allotted to 241,081 successful applicants. The category-wise details of the Basis of Allotment are as under:

C. Allotment to Non Institutional Bidders (After Technical Rejections)
The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Issue Price of Rs.140/- per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 2.78 times and hence allotment was done on full and firm basis to all valid applicants. There were a total of 291 applications for 43,065,900 Equity Shares out of which 119 applications for 17,923,900 Equity Shares were made under ASBA process. Of these 205 applications for 35,298,350 Equity Shares were found valid and they were considered for allotment. The total number of shares allotted in Non Institutional Investor category is 12,695,809 Equity Shares which were allotted to 205 successful applicants. The category-wise sample details of the Basis of Allotment are as under:

D. Allotment to Qualified Institutional Buyers (After Rejections)
The Basis of Allotment to the Qualified Institutional Bidders, who have bid at the Issue price of Rs.140/- per Equity Share was finalized on a proportionate basis. This category has been subscribed to the extent of 4.04 times. There were a total of 43 applications for 176,480,650 Equity Shares made under the QIB category out of which 35 applications for 169,503,150 Equity Shares made under ASBA process. Of these 39 applications for 171,195,550 Equity Shares were found valid and they were considered for allotment. The total number of shares allotted in Qualified Institutional Investors category is 42,319,365 Equity Shares which were allotted to 39 successful applicants.

The FPO Committee of the Board of Directors of the Company at its Meeting held at Mumbai on December 14,2010 has allotted the Equity Shares to the various successful Bidders.

The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on or prior to December 15,2010. In case the same is not received within 10 days, investors may contact at the address given below. Further, the Instructions to Self Certified Syndicate Banks have been dispatched on December 13, 2010. The Refund Orders have been over-printed with the bank account details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants has been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned.
The Company has obtained the listing and trading permission from the Bombay Stock Exchange Limited and the NSE and the Equity Shares allotted are tradable on the Stock Exchanges with effect from December 15, 2010.

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 Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
Unit: The Shipping Corporation of India Limited
Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road,
Madhapur, Hyderabad - 500081,
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 SHARES ON LISTING OR THE BUSINESS PROSPECTS OF THE SHIPPING CORPORATION OF INDIAUMITED

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

The Shipping Corporation of India Limited, subject to market conditions and other considerations, has made a further public issue of its equity shares and has filed the Prospectus with Registrar of Companies, Maharashtra, Mumbai. The Prospectus is available on the website of SEBI at www.sebi.gov.in and at the websites of the Book Running Lead Managers at www.sbicaps.com, www.icicisecurities.com and www.idfccapital.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" in the Prospectus. The information contained herein is not for publication or distribution in or into the United States of America. These materials do not constitute an offer of securities for sale in any jurisdiction, including the United States. The equity shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), or any state securities laws in the United States and may not be offered or sold within the United States except pursuant to an exemption from or in a transaction not subject to, registration requirements of the US Securities Act and in accordance with any applicable US state securities laws. The equity shares are being offered and sold within the United States only in compliance with Rule 144A under the US Securities Act, and outside the United States only in compliance with Regulation S under the US Securities Act and the applicable laws of each jurisdiction where such offers and sales occur.