Transwarranty IPO Basis of Allotment

TRANSWARRANTY FINANCE LIMITED

(Originally incorporated as Trans Warranty Finance Limited on August 09,1994 vide registration no. 11-80220 and received the Certificate for Commencement of Business on August 30,1994 from the Registrar of Companies, Maharashtra, Mumbai, The name of our Comapany was changed to Transwarranty Finance Limited. w.e.f. July 08, 2005.)
Registered and Corporate Office : 403, Regent Chambers, Nariman Point, Mumbai - 400021.
Tel No: +91 22 2204 7965/66/6630 6090/91; Fax No : +91 22 6630 6655;
Website: www.transwarranty.com; Email: ibank@transwarranty.com
Contact Parson: Mr. Sreedhar Hirimbi, Company Secretary and Compliance Officer

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 6,000,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH OF TRANSWARRANTY FINANCE LIMITED (HEREINAFTER REFERRED TO AS THE 'COMPANY' OR 'ISSUER') AT A PRICE OF RS. 52 FOR CASH AT A PREMIUM OF RS. 42 AGGREGATING RS. 312 MILLION (HEREINAFTER REFFRRED TO AS THE ISSUE') COMPRISING A RESERVATION OF 100,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH FOR ELIGIBLE EMPLOYEES ON A COMPETITIVE BASIS AT A PRICE OF RS. 52 FOR CASH AT A PREMIUM OF RS. 42 AGGREGATING RS. 52 MILLION AND NET ISSUE TO PUBLIC OF 58,00,000 EQUITY SHARES OF FACE VALUE RS. 10/-EACH (HEREINAFTER REFERRED TO AS THE 'NET OFFER TO THE PUBLIC'). THE ISSUE WOULD CONSTITUTE 42.86% OF THE POST ISSUE PAID UP CAPITAL OF THE COMPANY.

THE ISSUE PRICE OF THE EQUITY SHARES IS RS. 52 PER EQUITY SHARE WHICH IS 5.2 TIMES THE FACE VALUE OF THE EQUITY SHARES.

This Issue is being made through the 100% Book Building Process where in at least 50% of the Net Issue shall be allocated) on a proportionate basis to QIBs as specified in the Disclosure and Investor Protection Guidelines, 2000 of the Securities and Exchange Board of India ('SEBI') (including 5% of the QIBs' portion that would be specifically reserved only for Mutual Funds and Mutual Fund applicants shal also be eligible for proportionate allocation under the balance available for QIBs). Further, upto 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and upto 35% of the Net Issue shall 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 Board of Directors of Transwarranty Finance Limited wish to thank the investing public for their response to the Issue which opened for subscription on January 23,2007 and closed on February 02,2007. The Issue received 11,562 applications for 91,16,640 Equity Shares resulting in 1.5194 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers ('QIBs'), Non-Institutional Bidders, Retail Individual Bidders and Employee categories are as under:

Final Demand
The final demand at different bid prices is as under:

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange-Bombay Stock Exchange Limited ('BSE')  on Thursday, February 14, 2007.

A) Allocation to Employees

The Basis of Allotment to the Employee Category was finalized in consultation with BSE. The Company received 25 valid applications for 25,680 Equity Shares in this category resulting in 0.25680 times subscription. The total number of Equity Shares allotted in this category Is 25,680. The unsubscribed portion of 74320 was added to the Retail and HNI Category in the ratio of 1:1. The category wise details of the Basis of Allotment are given below:

B) Allocation to Retail investors
The Basis of Allotment to the Retail Individual Bidders was finalized in consultation with BSE. The Company received 11,138 valid applications for 44,18,760 Equity Shares in this category resulting in 2.10201 times subscription. The total number of Equity Shares allotted in this category is 21,02,208 (Including 37160 Shares spill over from Employee Category). The category wise details of the Basis of Allotment are given below:

C) Allocation to Non Institutional Bidders
The Basis of Allotment to the Non Institutional Bidders was finalized in consultation with BSE. The Company received 37 valid applications for 15,15,360 Equity Sharos in this category resulting in 1.64327 times subscription. The number of shares allotted to Non-Institutional Bidders is 9,22,112 (Including 37160 Shares spill over from Employee Category).The category wise details of the Basis of Allotment are given below.

D. Allocation to QIBs

Allocation to QIBs was 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 (1,47,500) and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available shares (28,02,500) on proportionate basis.

The Board of Directors at a meeting held at Mumbai on February 14, 2007 approved the Basis of Allotment of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants.
The refund orders / allotment advice/notices has been dispatched to the addresses of the investors as registered with the depositories, in case the same is not received within ten days, investors may contact tie Registrar to the Issue 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 the 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 the National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from file date of approval of Basis of Allotment.

INVESTORS PLEASE NOTE
These details of file allocation will also be available on the website of the Registrar to the Issue, Intime Spectrum Registry Limited, at http://www.Intimespectrum.com
All future correspondence in Ms regard may kindly be addressed to the Registrar to the issue quoting the full name of the First/Sole applicants, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where me bid was submitted and payment details at the address given below :

Intime Spectrum Registry Limited
C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai 400078
Phone:(91-22) 2596 0320; Fax: (91-22) 2596 0329
Email: transwarrantyipo@intimespectrum.com, Website: www.intimespectrum.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUfTY SHARE ON LISTING OR THE PROSPECTS OF TRANSWARRANTY FINANCE LIMITED.