Vascon Engineers IPO Basis of Allotment

VASCON ENGINEERS LIMITED

Vascon Engineers Limited (the"Company") or ("Issuer") was originally incorporated on January 1,1986 as a private limited company under the provisions of the Companies Act, 1956 Maharashtra.
Registered Office:: 15/16, Hazari Baug, L.B.S.Marg, Vikhroli (W),
Mumbai - 400 083, Maharashtra, India, www.vascon.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 10,800,000 EQUITY SHARES OF RS.10 EACH FOR CASH AT A PRICE OF RS.165 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 155 PER EQUITY SHARE, AGGREGATING RS. 1,782-00 MILLION (THE "ISSUE") BY THE ISSUER. THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 10,700,000 SHARES OF RS. 10 EACH (THE "NET ISSUE") AND A RESERVATION OF UP TO 100,000 EQUITY SHARES OF RS. 10 EACH FOR ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION").THE ISSUE WOULD CONSTITUTE 11.95% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPfTAL OF THE COMPANY AND THE NET ISSUE WOULD CONSTITUTE 11.84% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.THE ISSUE PRICE IS RS-165. THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 AND THE ISSUE PRICE IS 16.5 TIMES OF THE FACE VALUE
THE MINIMUM LOT SIZE IS 35 SHARES

The Issue is 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") (inducing 5% of the QIB portion that was to be specifically allotted to mutual funds), further,up to 10% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% 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 8,073 applications for 12,575,490 Equity Shares resulting in 1.16 times subscription. The details of the applicationsreceived in the Issue from QIBs, Non-Institutional, Retail Individual Investors and Employee categories are as under: (Before technical Rejections}

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

T he Basis ol Allocation was finalized in consultation with the National Stock Exchange of India Limitea ( "NSE" ) on February 8, 2010.

A. Employees
The Basis of Allocation to the employees of Vascon Engreers Ltd, who have bid at cut-off or at the Issue Price of Rs.165/- per Equity Share, was finalized in consultation with NSE. The total nunber of shares alloted to this category is 49,140. The under subscribed portion of 50,860 eqiity shares have been spilled over to QIBs, Non-Institutional Bidders and Retail Individual Investor Category in the ratio of 60:10:30.

B. Allocation to Retail Individual Investors (Including ASBA Applications) (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs.165/- per Equity Share or above, was finalized in consultation with NSE. This category has been over-subscribed to the extent of 0.48 times and hence allotment was done on full and firm basis to all valid applicants. Overall 7,695 applications for 1,542,450 Equity Shares were found valid and they were considered for allotment. The above includes 1,046 valid applications for 177,890 equity shares made under the ASBA process. The total number of shares allotted in Retail Individual Investor category is 1,542,450 Equity Shares to 7,695 applicants. Under-subscription in the Retail Portion of 1,682.808 shares has been added to the Qualified Institutional and Non Institutional Category in the ratio of the over subscription in these categories which is 24:76

C. Allocation to Non-Institutional Investors (After Technical Rejection)
The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs.165/- per Equity Share or above, was finalized in consultation with NSE. This category has been over-subscribed to the extent of 1.44 times. Overall 57 applications for 3,393,965 equity shares were found valid and they were considered for allotment. The total number of equity shares allotted in this category is 2,354,759 (including spill over of 1,284,759 equity shares from other categories) to 57 applicants. The category-wise details of the Basis of Allocation (sample) are as under:

The Basis of Allocation to the Qualified Institutional Investors, who have Bid at the Issue Price of Rs.165/-per Equity Share or above, was finalized in consultation with NSE. Overall 19 applications tor 7,191,660 Equity Shares were found valid and they were considered for allotment, (including spill over of 433651 equity shares from other categories)

The Board of Directors of the Company at its meeting held at Hyderabad on 08.02.2010 has approved the basis of allocation of Equity Shares of the Issue and has allotted the Shares to various successful applicants.
The CAN-cum-Refund Orders and Refund credit advice 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 Account details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Equity Shares of the Company shall be listed and admitted for trading on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited with effect from February 15. 2010.

All future correspondences In this regard may kindly be addressed to the Registrars to the Issue quoting full name ot the First/ Sole applicant, Serial number of the bid-cum-appllcation form, number of Equity 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:VASCON ENGINEERS LIMITED: Plot No. 17 to 24, Vitharao Nagar,
Madhapur, Hyderabad - 500 081, Fax: 040-23420814
Email: ainward.ris@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 SHARES ON LISTING OR THE BUSINESS PROSPECTS OF VASCON ENGINEERS LIMITED.