Somi Conveyor IPO Basis of Allotment

SOMI CONVEYOR BELTINGS LIMITED

Registered Office: 4F-15, 'Oliver House' New Power House Road, Jodhpur- 342 001 Phone:0291-2610472 2637564/5, Fax:0291-2432307, Email: ipo@somiconveyor.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 62,27,860 EQUITY SHARES OF Rs.10/- EACH AT A PRICE OF Rs.35/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF Rs.25/- PER EQUITY SHARE) FOR CASH AGGREGATING RS.2179.75 LAKHS('ISSUE'). THE ISSUE COMPRISES A CONTRIBUTION BY PROMOTERS, OF 14,99,286 EQUITY SHARES OF RS.10/-EACH AT PRICE 0F OF RS.35/-PER EQUITY SHARE FOR CASH AGGREGATING TO RS. 524.75 LAKHS ('PROMOTER'S CONTRIBUTION PORTION'), AND THE NET ISSUE TO THE PUBLIC OF 47,28,574 EQUITY SHARES OF RS.10/- EACH AT A PRICE OF RS.35/- PER EQUITY SHARE FOR CASH AGGREGATING TO RS.1655.00 LAKHS ('NET ISSUE TO PUBLIC') INCLUDING AN ALLOCATION OF ATLEAST 10% OF THE NET ISSUE TO THE PUBLIC TO QUALIFIED INSTITUTIONAL BUYERS ('QIB PORTION').

THE ISSUE PRICE OF Rs.35/- PER EQUITY SHARE IS 3.5 TIMES OF THE FACE VALUE

The Board of Directors thank the investing public for their encouraging response to the Public Issue, which opened for subscription on 24th June 2008 and closed on 27th June 2008. The Company received 7039 gross applications for 10327200 equity shares of which valid applications were 6516 for 9309600 equity shares. Out of the total valid application, 2 applications wherein QIB category for 945800 equity shares, 6475 applications in Retail category for 7011600 equity shares and 39 applications in the Non- Retail category for 1352200 equity shares.

The Public issue was over subscribed by 1.97 times In QIB Category, 2.25 times in Retail category and 2.01 times in Non-Retail category. The Public Issue was oversubscribed overall 2.18 times.

In terms of the prospectus dated 09.06.2008 and also as per the guidelines issued by SEBI, a minimum of 50% of the net issue to the Public shall be available for allotment to Retail Individual Investors and balance of the net issue to the public shall be available for allotment to individual applicants other than Retail Individual Investors and other investors including Corporate Bodies / Institutions / QIBs irrespective of number of shares applied for. However, out of the total subscription, 10.16% were applied by QIB, 75.32% were applied by Retail investors and 14.52% were applied by Non-Retail investors. Hence, the Basis of Allotment was drawn in the proportion of the subscription, i.e. 10.16% was proposed to be allotted to QIB, 75.32% was proposed to be allotted to Retail Investors and the balance, i.e. 14.52% to Non-Retail Investors.
As required under the Listing Agreement, the Basis of Allotment has been approved by the designated Stock Exchange i.e. Bombay Stock Exchange Ltd. on 17.07.2008
The details of the valid applications received in the Issue in QIB, Retail Individual Investors and Non-Retail Investors categories are as under (after technical rejections):

A. Allotment to Qualified Institutional Investors (QIBs)

The Basis of Allotment to the QIBs, at the Issue price of Rs.35/- per Equity Shares, was finalised in consultation with Bombay Stock Exchange Ltd. (BSE). The category was oversubscribed by 1.9686 times. The total number of shares allotted In this category is 480423 Equity Shares. The category-wise details of the Basis of Allotment are as under:

B. Allotment to Retail Investors

The Basis of Allotment to the Retail Investors, at the Issue price of Rs.35/- per Equity Shares, was finalised in consultation with Bombay Stock Exchange Ltd. (BSE). The category was oversubscribed by 1.9686 times. The total number of shares allotted in this category Is 3561654 Equity Shares (Including 92 excess shares due to rounding off). The category-wise details of the Basis of Allotment are as under:

C. Allotment to Non-Retail Investors

The Basis of Allotment for the Non-Retail Investors, who have applied at the issue price of Rs.35/- per Equity Shares for a total amount of more than Rs.1,00,000/-, was finalised in consultation with Bombay Stock Exchange Ltd. (BSE). The category was oversubscribed 1.96 times. The total number of shares allotted in this category is 686589 Shares.

All the applicants In this category have been given firm allotment on proportionate basis inverse to the over-subscription ratio.

The Board of the Company, at its Meeting held at the Registered Office of the Company in Jodhpur on 17th July 2008 has approved the basis of allotment of shares of the Issue and has allotted the shares to various successful applicants.
Refunds have been made through ECS, Direct credit and RTGS into the Bank Accounts of the applicants or Refund orders as the case may be to their address with the Depositories. In case the same is not received within ten days, applicants may contact at the address given below. ECS Intimation Note and Refund Orders have been overprinted with the Bank Mandate details as registered, if any, with the Depositories. The Equity shares allotted to successful applicants have been credited to their beneficiary accounts. The company is taking steps to get the Equity Shares admitted for trading on Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allotment.

All future correspondence in this regard may kindly be addressed to the Registrars to the Issue, quoting full name of the First / Sole applicant, serial number of the application, DPID and Client ID, number of shares applied for, Bank branch Name where the application was submitted and payment details at the address given below

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE OH LISTING OR THE BUSINESS PROSPECTS OF SITA SHREE FOOD PRODUCTS LIMITED.