V-Guard IPO Basis of Allotment

(This is only an advertisement for information purpose and not a Prospectus Announcement)

V-Guard Industries Limited

(Our Company was originally incorporated as V-Guard Industries Limited on February 12, 1996 under the Companies Act, 1956, with the Registration No. 09-10010 of 1996. With effect from November 15, 2001 our Company was converted into a Private Limited Company, and subsequently got converted into a Public Limited Company on August 1, 2007 and received a fresh certificate of incorporation in the name of 'V-Guard IndustriesLimited.'Our Corporate Identity Number is U31200KL1996PLC010010)

Registered cum Corporate Office: 44/1037, Little Flower Church Road, Kaloor, Cochin- 682017, Kerala, India; Our Company has not changed its registered office since its incorporation. Tel. No.: +91-484-2539911, 2530912. Fax No.: + 91-484-2539958, Website: www.vguard.in, Contact Person & Compliance Officer: Mr. T. Nandakumar, E-mail: ipo@vguard.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 80,00,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 82 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 72 PER EQUITY SHARE) FOR CASH AGGREGATING TO RS. 6560 LAKHS (THE 'ISSUE') OUT OF WHICH 4,00,000 EQUITY SHARES HAVE BEEN RESERVED FOR ELIGIBLE EMPLOYEES OF OUR COMPANY ( 'EMPLOYEE RESERVATION PORTION'). THE NET ISSUE TO THE PUBLIC SHALL BE 76,00,000 EQUITY SHARES OF RS.10 EACH FOR CASH AT A PRICE OF RS. 82 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 72 PER EQUITY SHARE) FOR CASH AGGREGATING TO RS. 6232 LAKHS (THE 'NET ISSUE TO PUBLIC'). THE ISSUE WILL CONSTITUTE 26.80 % OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY AND THE NET ISSUE TO PUBLIC WILL CONSTITUTE 25.46 % OF THE FULLY DILUTED POST ISSUE PAID -UP CAPITAL OF OUR COMPANY. THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 82/- AND IT IS 8.2 TIMES THE FACE VALUE. The Issue was made through the 100% Book Building Process wherein up to 50% of the net Issue to public 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 15% of the net issue to public was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the net Issue to public was available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price. FURTHER UPTO 400000 EQUITY SHARES WAS AVAILABLE FOR ALLOCATION ON A PROPORTIONATE BASIS TO ELIGIBLE EMPLOYEES, SUBJECT TO VALID BIDS BEING RECEIVED AT OR ABOVE THE ISSUE PRICE.

The Issue received 40160 applications for 19582000 equity shares resulting in 2.4477 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investor and Employee 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 the Bombay Stock Exchange Limited ('BSE') on 4th March, 2008.

A. Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at cut-off or at the Issue Price of Rs. 82/- per Equity Share was finalized in consultation BSE. The category was subscribed 0.890000 times. The total number of Equity Shares allotted in this category is 356000 Equity Shares to 308 successful applicants. The Unsubscribed portion (44,000 shares) is spilled over to Retail category. The category wise details of the Basis of Allocation (sample) are as under:

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 82/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 3.891834 times. The total number of equity shares allotted in this category is 2704038 including Spill over from Employee Category (44000 Equity Shares). The category-wise details of Basis of Allocation are as under:

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to Non-Institutional Investors, who have bid at the Issue Price of Rs. 82/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 1.421404 times. The total number of Equity Shares allotted in this category is 1139962 Equity Shares to 176 successful applicants. The category-wise details of Basis of Allocation (sample) are as under:

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with NSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (1,90,000) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (36,10,000) on proportionate basis.

The Board of Directors of the company at its Meeting held at Kochi on March 05,2008 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 the National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval or the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.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:

INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalal Silk Ms Compound, L.B.S Marg, Bharsdup (W), Mumbai -400 078.
Tel: +91-22-25960320. Fax: +91-22-25960329. Emaihvil.ipo@inlimespectrum.com

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 V-GUARD INDUSTRIES LIMITED.