Shree Ganesh IPO Basis of Allotment

SHREE GANESH JEWELLERY HOUSE LIMITED

Our Company was originally incorporated in Kolkata as ShreeGanash Jewellery House Private Limited on August 30,2002. The status of our Company was changed to a public limited company and our name was changed to 'ShreeGanesh Jewellery House Limited' pursuant to a fresh certificate of incorporation issued by the ROC,West Bengal on August 14,2007. For details of incorporation and changes of name, please refer to the section titled 'History and Certain Corporate Matters' beginning on page 102 of this Red Herring Prospectus.

Registered Office: 413, Vardaan Market, 25A, Camac Street, Kolkata- 700 016; Tel No: + 91 33 2280 0345;
Fax No: + 91 33 2283 5075
Website: www.sgjhl.com; E-mail: investors@sgjhl.com
Corporate Office: Avani Signature, 4th Floor, Suite No. 402,91 A/1 Park Street, Kolkata-700016;
Tel:+91 33 3025 9382; Fax: +91 33 4007 1623;
Contact Person: Mr. Mukund Chandak, Company Secretary and Compliance Officer
Promoters of our Company: Mr Nilesh Parekh and Mr. Umesh Parekh

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 1,42,69,831 EQUITY SHARES OF RS.10 EACH FOR CASH AT A PRICE OF RS. 260 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 250 PER EQUITY SHAHE), AGGREGATING TO RS. 37,101,56 LACS (HEREINAFTER REFERRED TO AS 'THE IS5UE'). CONSISTING OF A FRESH ISSUE OF 1,21,36,497 EQUITY SHARES BY SHREE GANESH JEWELLERY HOUSE LIMITED ('OUR COMPANY' OR 'THE ISSUER') AND AN OFFER FOR SALE OF 21,33,334 EQUITY SHARES BY CREDIT SUISSE PE ASIA INVESTMENTS (MAURITIUS) LIMITED ('THE SELLING SHAREHOLDER'). THE ISSUE WILL CONSTITUTE 23.52% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY. THE FRESH ISSUE WILL CONSTITUTE 20.00% OF THE FULLY DILUTED POST ISSUE PAID UP CAPITAL OF OUR COMPANY.

BID/ISSUE OPENED ON MARCH 19,2010, CLOSED ON MARCH 23,2010

The Equity Shares of the Company are proposed to be listed on Bombay Stock Exchange Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading is expected to commence on or about April 09,2010

THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS.260/-AND IT IS 26 TIMES THE FACE VALUE. THE ANCHOR INVESTOR ISSUE PRICE IS RS. 260/- PER EQUITY SHARE.

In accordance with Rule19(2)(b) of the Securities Contract (Regulation) Rules, 1957 ('SCRR'),this being an Issue for less than 25% of the post-Issue paid up capital, the Issue is being made through the 100% Book Building Process wherein at least 60% of the Issue will be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs'), Out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Our Company may allocate up to 30% of the QIB Portion to Anchor Investors at the Anchor Investor Price on a discretionary basis, out of which at least one-third will be available for allocation to Mutual Funds only. In the event of undersubscription in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. 5% of the Net QIB Portion shall be available for allocation to Mutual Funds on a proportionate basis. The remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid bids being received from them at or above the Issue Price. It at least 60% of the Issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, not less than 10% of the Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the 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.

The Company has allocated 24,99,975 Equity Shares of the QIB Portion to Anchor Investors on a discretionary basis at Rs.260 in accordance with the SEBI Regulation. The Issue received 24,388 applications for 2,14,86,275 equity shares resulting in 1.51 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non- Institutional, Retail Individual Investor and Anchor Investors are as under: (Before technical rejections)

Final Demand
A summary of the final demand as per BSE and NSE as on the Bid/Issue Closing date at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ('BSE') on April 1,2010

A. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail individual Investors, who have bid at out off and the Issue Price of Rs.260/- per Equity Share, was finalized in consultation with BSE. The category was Over subscribed 1.16 times. The total number of shares allotted in this category is 42,80,949 Equity Shares to 23,200 successful applicants. The category-wise details ol the Basis of Allocation are under;

C.  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. 260/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 3.61 times. The total number of shares allotted in this category is 14,26,983 Equity Shares to 74 successful applicants. The category-wise details of the Basis of Allocation are (Sample) under:

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI regulations, No Mutual Funds applications were received in the issue, so the entire portion of QIB Reservation of 60,61,924 Shares was allotted to other QIBs on proportionate basis.

E. Allocation to Anchor Investors
Allocation to Anchor Investors has been done on a proportionate basis in consultation with BSE. As per the SEBI regulations, 30% of QIB Reservation (24,99,975 Equity Shares) was allotted to Anchor Investors (24,99,975 Equity Shares).