Spice Telecom IPO Basis of Allotment

SPICE COMMUNICATIONS LIMITED

(Originally incorporated as a private limited company on March 28,1995 underthe name of 'Modicom Network Private Limited'. The Company subsequently became a deemed public company under section 43(1 A) of the Companies Act, 1956 with effect from April 1,1999 and the name of the Company was changed to 'Modicom Network Limited'. The name of the Company was further changed to 'Spice Communications Limited' vide fresh Certificate of Incorporation dated December 3,1999. With addition of the word 'Private' in the name of the Company under Section 43A (2A) of the Companies Amendment Act, 2000, the name was again changed to 'Spice Communications Private Limited' with effect from October 28,2003. On December 28,2006, the Company was converted into a public limited company and the name was changed to 'Spice Communications Limited'.

Registered Office: 60-D Sainik Farms, New Delhi -110062, Tel.: (9111) 6546 9839-43 Fax: (9111) 2955 2642 Corporate Office: Spice Towers, No. 75, Richmond Road, Civil Station, Bangalore-560 025 Tel: (9180) 2209 8311, Fax: (9180) 2209 8312 Head Office: D1, Sector 3, NOIDA, District Gautam Budh Nagar, Uttar Pradesh - 201301, Tel.: (91120) 436 3600/3800, Fax: (91120) 432 0467. The Company shifted teflegistered office from 13th Floor Hemkunt Tower, 98, Nehru Place, New Delhi -110019 to 60- D, Sainik Farms, New Delhi-110062 with effect from April 13,2004.) Contact Person: Ms Preeti Malhotra, Compliance Officer and Company Secretary, Tel.: (91120) 436 3600, 4363800, Fax: (91120)4363845 E-mail: complianceofficer@spiceindia.com, Website: www.spiceindia.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 113,111,111 EQUITY SHARES OF RS. 10 EACH OF SPICE COMMUNICATIONS LIMITED ('COMPANY' OR ISSUER') FOR CASH AT A PRICE OF RS. 46 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 36 PER EQUITY SHARE AGGREGATING TO RS. 5203.11 MILLION (THE ISSUE). THE ISSUE COMPRISES A NET ISSUE TO PUBLIC OF 111,111,111 EQUITY SHARES AND A RESERVATION FOR ELIGIBLE EMPLOYEES OF UP TO 2,000,000 EQUITY SHARES AT THE ISSUE PRICE. THE ISSUE WILL CONSTITUTE 16.39%OF THE FULLY DILUTED POST-ISSUE EQUITY SHARE CAPITAL OF THE COMPANY. THE NET ISSUE WOULD CONSTITUTE 16.10% OF THE FULLY DILUTED POST-ISSUE EQUITY SHARE CAPITAL THE COMPANY.
THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 46/- AND IT IS 4.6 TIMES THE FACE VALUE.
The Issue made through the 100% Book Building Process wherein at least 60% of the net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (including 5% of the QIB portion that was to specifically be allotted to mutual funds), further, not less than 10% of the net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the net Issue shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.
The Issue received 1,36,746 applications for 424,98,01,404 equity shares resulting in 37.57 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual

Final Demand
A sample of the final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited ('BSE') on 10th July, 2007.

A. Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at cut-off or at and above the Issue Price of Rs.46 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 0.67 times. Hence FULL and FIRM allotments have been made against all valid applications. The total number of shares allotted in this category is 1338255 Equity Shares to 105 successful applicants. The unsubscribed portion of 661745 equity shares has been added to Retail and Non-Institutional categories.

B. 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 and above the Issue Price of Rs.46 per Equity Share.'was finalized in consultation with BSE. The category was subscribed to the extent of 3.83 times. The total number of shares allotted in this category is 33664206 Equity Shares (including 330873 equity shares spilled over from employees category) to 102058 successful applicants. The category-wise details of the Basis of Allocation (Sample) are as under:

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at cut-off or at and above the Issue Price of Rs.4f per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 18.09 times. The total number of shares allotted in this category is 11441983 Equity Shares (including 330872 equity shares spilled ovei from employee category) to 293 successful applicants. The category-wise details of the Basis of Allocation (Sample) are asunder:

D.AIIocatlon to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (33,33,334) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (6,33,33,333) on proportionate basis.

The Committee of Directors of the company at it's Meeting held at New Delhi on 10th July, 2007 has approved the basis of allocation of shares and has allotted the shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices (where applicable) 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 Orders have been over-printed with the Bank Mandate 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 fortrading on the Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrars to the Issue, Karvy Computershare Private Limited at www.karvy.com or http://kcpl.karvy.com
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 bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
Unit: SPICE Plot No. 17 to 24, Vitharao Nagar,
Hitech City Road, Madliapur Hyderabad - 500081
Fax: 040-23420814 Email: einward.ris@karvv.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 SHARE ON LISTING OR THE BUSINESS PROSPECTS OF SPICE COMMUNICATIONS LIMITED.