Tanla IPO Basis of Allotment

TANLA SOLUTIONS LIMITED

(Incorporated underthe Companies Act, 1956 as a public limited company in the name of Maruti Dairy Products Limited on 28th July, 1995 in Hyderabad. The name of the Company was changed to Prism Foods Limited on 18th March, 1996. Subsequently, the name of the Company was changed to Tanla Solutions Limited on 18th March, 2000.)

REGISTERED OFFICE: Regd. Office: Tanla Technology Centre, Hitech City Road, Madhapur, Hyderabad 500 081. Tel:+91-40-40099999, Fax:+91-40-23122999.
email: fpo@tanlasolutions.com Website: www.tanlasolutions.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 1,58,85,000 EQUITY SHARES OF RS. 2/- EACH FOR CASH AT A PRICE OF RS. 265/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 263/ - PER EQUITY SHARE) AGGREGATING TO RS 4,209.53 MILLION (REFERRED TO AS "THE ISSUE"). THE ISSUE COMPRISED A PROMOTER CONTRIBUTION OF 15,88,500 EQUITY SHARES OF RS. 2/- EACH FOR CASH AT A PRICE OF RS.265/- PER EQUITY SHARES AGGREGATING TO RS. 420.95 MILLION. AND THE NET OFFER TO THE PUBLIC OF 1,42,96,500 EQUITY SHARES OF RS.2/- EACH FOR CASH ATA PRICE OF RS.265/- PER EQUITY SHARES AGGREGATING TO RS. 37,88.57 MILLION. THE NET ISSUE CONSTITUTES 28.59% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF TANLA SOLUTIONS LIMITED. ("COMPANY" OR "ISSUER").

THE FACE VALUE PER EQUITY SHARE IS RS.2/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 265/- AND IT IS 26.5 TIMES THE FACE VALUE.

The Issue made through the 100% Book Building Process wherein at least 50% of the net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ("OIBs") (including 5% of the QIB portion that was to specifically be allotted to mutual funds), further, up to 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 35% of the 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 2,41,900 applications for 55,14,27,249 equity shares resulting in 34.71 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investor categories are as under: (Before technical rejections)

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

The Basis of Allocation was finalized in consultation with Bombay Stock Exchange Limited ("BSE") on 27th December, 2006.
A Allocation to Retail Individual Investors (After Technical Rejections)
The Basis Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs.265/- per Equity Share, was finalized in consultation with BSE. The Category was  over subscribed 10.66 times. The  total number of shares allotted in this in is category is 5003775 Equity Shares to 161854 successful applicants: The category-wise details of the Basis of Allocation are as under:

B. 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.265/- per Equity Share, was finalized in Consultation with BSE. The Category was subscribed 40.97 times. The total number of shares allotted in this Category is 2144475 Equity Shares to 592 successful applicants. The category-wise details of the Basis of Allocation (Sample) are as under:

C. Allocation to QIBs
Allocation to OIBs 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 (3,57,413) and other OIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (67,90,837) on proportionate basis.

The Committee of Directors of the Company at it's Meeting held at Hyderabad on 28th December, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

The CAN-Cum-Refund Orders and allotment advice and 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 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 for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS, PLEASE NOTE
Investors may Please note that new equity shares of the company allotted under Public Issue shall have the same ISIN as the existing equity shares Had on Hyderabad Stock Exchange, Ahmedabad Stock Exchange and Madras Stock Exchange. Investors should note that though new equity shares will be credited to their demat accounts, they can trade In the new equity shares only after ascertaining that trading approvals have been Issued and notified by Bombay Stock Exchange, National Stock Exchange, Hyderabad Stock Exchange, Ahmedabad Stock Exchange and Madras Stock Exchange.

This details all the allocation made would be head on the website of Registrars to the Issue, Karvy Computer Share Private Limited at www.karvy.com or http://karisma.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-cumapplication 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:

Kervy Computershare Private Limited
Unit: Tanla Solutions, Plot No. 17 to 24, Vitharao Nagar, Hitech City Road,
Madhapur Hyderabad-500081, Fax: 040-23420814, Email: mailmanager@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 SHARE ON LISTING OR THE BUSINESS PROSPECTS OF TANLA SOLUTIONS LIMITED.