Varun Industries IPO Basis of Allotment

VARUN INDUSTRIES LIMITED

Originally incorporated as Varun Continental Limited on March 8, 1996 under the Companies Act, 1956 vide registration no. 11-97945 (CIN: U28990MH1996PLC097945) and received Certificate for Commencement of Business on March 15, 1996 from the Registrar of Companies, Maharashtra, Mumbai. The name of our Company was changed to Varun Industries Limited w.e.f. April 21, 2005. Our registered office earlier located at Dwarkesh Market, Dr. A.M. Road, Near Central Bank, Bhuleshwar, Mumbai - 400 002, w.e.f. July 24, 1996 was shifted to its present location as under:
Registered & Corporate Office: 13, Shankeshwar Darshan, A.G. Pawar Cross Lane, Byculla (E), Mumbai - 400 027.
Tel: +91-22-2372 7400; Fax: +91-22-2374 8686; Website: www.varun.com; E-mail: ipo@varun.com.
Contact Person: Mr. Rajendra Kumar Haran, President - Legal & HRD and Company Secretary and Compliance Officer.

BASIS OF ALLOTMENT

Public issue of 90,00,000 Equity Shares of Face Value of Rs.10 each at a price of Rs.60/- per Equity Share for cash at a premium of Rs.50/- per Equity Share aggregating Rs.5400 lakhs (hereinafter referred to as the "Issue") comprising Promoters Contribution of 24,30,000 Equity Shares of Rs.10/- each at a price of Rs.60/- per Equity Share for cash at a premium of Rs.50/- per Equity Share aggregating Rs.1458 lakhs. The Net Issue to the Public is 65,70,000 Equity Shares of Face Value of Rs.10/- each at a price of Rs.60/- per Equity Share for cash at a premium of Rs.50/- per Equity Share aggregating Rs. 3942 lakhs. The Net Issue would constitute 29.71% of the Post Issue paid up Capital of the, Company.

The Board of Directors of Varun Industries Limited ("Company") wishes to thank all the Investors for their response to the Public Issue. The Basis of allotment has been finalized in consultation with the Bombay Stock Exchange Limited ("BSE") on November 16, 2007. The Public Issue opened on October 25, 2007 and closed on October 31, 2007. The Issue received 151786 valid applications for 24,20,36,500 equity shares resulting in 36.46 times subscription and 90,01,145 equity shares have been allotted by the Board of Directors at their meeting held on November 17, 2007 as mentioned below. The details of valid applications received in the issue from the Retail and Non-retail investor after rejection and withdrawals are as under:

A. Allocation to Retail Investors

The Company received 151175 valid applications for 135008400 equity shares in this category resulting in an over subscription of 36.69 times. The total number of shares allotted in this category is 3680000 equity Shares. The category-wise details of the allotment is as under:

B. Allocation to Non Retail Investors

The Basis of Allotment to the Non Retail Investors was finalized in consultation with BSE. The category was subscribed 36.18 times. The total number of shares allotted in this category is 2891145 equity Shares. The category-wise details of the allotment is as under:

The Board of Directors of the Company at its Meeting held at Mumbai on November 17, 2007 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

The physical refund warrants, intimation regarding refunds through electronic modes (ECS, RTGS, NEFT or Direct Credit) and allotment advice has been dispatched to the same address of the investors as registered with the depositories on November 19, 2007. In case the same is not received within ten days, applicants 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 equity shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned on November 20, 2007. The listing application has been filed with the Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ("NSE") on November 19, 2007 and the Company is taking steps to complete all formalities for listing and commencement of trading of equity shares within seven working days from the date of finalisation of basis of allotment.

INVESTOR PLEASE NOTE

This details of the allocation made would be hosted on the website of Registrars to the Issue, Bigshare Services Private Limited at www.biqshareonline.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 Application form, number of shares applied for, name of the Broker and place where the application was submitted and payment details at the address given below:

BIGSHARE SERVICES PRIVATE LIMITED
E/2 Ansa Industrial Estate, Saki Vihar Road, Saki Naka, Andheri (E), Mumbai 400 072
Tel: 91- 22- 4043 0200, Fax: 91 -22 - 2847 5207
Website: www.biqshareonline.com. Email: ipo@biqshareonline.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 VARUN INDUSTRIES LIMITED.