Speciality Restaurants IPO Basis of Allotment

SPECIALITY RESTAURANTS LIMITED

(Our Company was incorporated as Speciality Restaurants Private Limited on December 1, 1999 as a private limited company under the Companies Act, 1956. The name of our Company was changed to Mainland Restaurants Private Limited on May 7, 2003 and a fresh certificate of incorporation dated May 8, 2003 was issued by the Registrar of Companies, West Bengal. Subsequently the name of our Company was changed again to Speciality Restaurants Private Limited and a fresh certificate of incorporation dated January 1, 2004 was issued. Consequent upon the conversion of our Company to a public limited company, the name of our Company was changed to Speciality Restaurants Limited and a fresh certificate of incorporation dated February 10, 2011 was issued by the Registrar of Companies, West Bengal. For further details see the section 'History and Certain Corporate Matters' on page 138 of the Prospectus.)
Registered Office: Uniworth House, 3A, Gurusaday Road, Kolkata 700 019; Tel: (91 33) 2283 7964; Fax: (91 33) 2280 9282. Corporate Office: B/25,4th Floor, Morya Landmark I, Veera Industrial Estate, Of New Link Road, Andheri (West), Mumbai 400 053. Contact Person: V. S. Satyamoorthy, Company Secretary and Compliance Officer Tel: (9122) 33416700; Fax: (9122) 33416878. Website: www.speciality.co.in; Email: investor@speciality.co.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 11,739,415 EQUITY SHARES OF FACE VALUE RS. 10 EACH OF SPECIALITY RESTAURANTS LIMITED ('OUR COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF RS. 150 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 140 PER EQUITY SHARE) AGGREGATING TO RS. 1,760.91 MILLION (THE 'ISSUE'). THE ISSUE WILL CONSTITUTE 25.00% OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

BID/ISSUE OPENED ON MAY 16, 2012* AND CLOSED ON MAY 18, 2012.

* The Anchor Investor Bid/Issue Period was one working day prior to the Bid/Issue Opening Date.

In terms of Rule 19(2)(b)(l) of the Securities Contracts Regulations Rules, 1957, as amended ('SCRR'), this is an Issue for 25% of the post-Issue capital of the Company. The Issue was made through the Book Building Process wherein not more than 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers ('QIB'). 5% of the QIB Portion (excluding Anchor Investor Portion) will be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion will be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 15% of the Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% 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. For details, see the section titled 'Issue Procedure' on page 281 of the Prospectus.

The Issue received 3,622 applications for 28,627,000 equity shares resulting in 2.44 times subscription. The details of the applications received in the Issue from Retail Individual Bidders, Non-Institutional Bidders, Qualified Institutional Bidders and Anchor Investors are as under (before technical rejections):

Final Demand

The final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being NSE on May 24, 2012.

A. Allocation to Retail Individual Bidders (After Technical Rejections)
The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs. 150 per equity share, was finalized in consultation with NSE. This category has been subscribed to the extent of  0.51 times. The total number of equity shares allotted in Retail Individual Bidders category is 2,112,960 equity shares to 3,454 successful applicants. Under-subscription of 1,995,836 equity shares in the Retail portion has been spilled over to QIB and Non-Institutional Bidders portion in the proportion of 50:15. The category-wise details (sample) of the Basis of Allocation are as under:

B. Allocation to Non-Institutional Bidders (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Bidders, who have bid at the Issue Price of Rs. 150 per equity share, was finalized in consultation with NSE. This category has been subscribed to the extent of 1.02 times. The total number of equity shares allotted in this category is 2,221,490 equity shares (including spill-over of 460,578 equity shares from Retail portion) to 46 successful applicants. The category-wise details (sample) of the Basis of Allocation are as under:

C. Allocation to QIBs (excluding Anchor Investors)
Allocation to QIBs has been done on a proportionate basis in consultation with NSE. As per the SEBI ICDR Regulations, Mutual Funds were initially allocated 5% of the quantum of equity shares available i.e. 282,203 equity shares (including spill-over of 76,763 equity shares from Retail portion) and other QIBs were allocated the remaining available equity shares i.e. 5,361,850 equity shares (including spill-over of 1,458,495 equity shares from Retail portion) on proportionate basis.

D. Allocation to Anchor Investors
Allocation to Anchor Investors has been done on a proportionate basis in consultation with the Book Running Lead Manager. As per the SEBI ICDR Regulations, 30% of QIB reservation i.e. 1,760,912 equity shares was allotted to Anchor Investors.

The IPO Committee of the Board of Directors of our Company at its meeting held on May 24, 2012, has taken on record the basis of allocation of equity shares approved by the Designated Stock Exchange, being NSE and has authorized the corporate action for the allotment of the equity shares to various successful applicants.
The CAN-cum-Refund Advices and allotment advice and/ or 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 Advices are accompanied with Demand Drafts which have been over-printed with the bank account details as registered, if any, with the depositories. The equity shares allotted to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. Our Company is taking steps to get the equity shares admitted for trading on the NSE and BSE within 12 working days of the closure of the Issue.

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:

Link Intime India Private Limited
C-13, Pannalal Silk Mills Compound
L. B. S. Marg, Bhandup (West), Mumbai 400 078
Tel.: (91 22) 2596 7878 Fax: (91 22)25960329
Email ID: speciality.ipo@linkintime.co.in

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 SPECIALITY RESTAURANTS LIMITED.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus. Speciality Restaurants Limited (the 'Company') has filed the Prospectus with Registrar of Companies, West Bengal. The Prospectus is available on the website of SEBI at www.sebi.gov.in and on the website of Book Running Lead Manager at www.investmentbank.kotak.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see section titled 'Risk Factors' on page 13 of the Prospectus. This document is not an offer of securities in the Unites States or elsewhere. This document has been prepared for publication in India and is not for publication or distribution, directly or indirectly, in or into the United States, Australia, Canada or Japan. The equity shares of the Company are not being registered under the U. S. Securities Act of 1933, as amended (the 'U. S. Securities Act'), and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U. S. Securities Act and applicable U. S. state securities laws.