Vijayeswari Textiles IPO Basis of Allotment

VIJAYESWARI TEXTILES LIMITED

(Incorporated as a public limited company on september05, 1953 under the Indian Companies Act, VII of 1913 with the Registrar of Joint Stock Companies, Coimbatore)
Registed office: Puliampatti, (Via) Pollachi, Coimbatore District - 642 002, Tamil Nadu, India
Tel : +91 4259 223764/224534; Fax: +91 4259 224687; Corporate Office: 10/400 Palghat Main Road Kuniamuthur, Coimbatore-641 008, Tamil Nadu, India Tel: +91 422 2252 661; Fax: +91 422 2251 538;
WebSite: www.vtx.co.in; Email: investors@vtx.co.in
Contact Person: Radhika K. Kumar, Company Secretary and Compliance Officer

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 90,00.000 EQUITY SHARES OF RS. 10 EACH ('EQUITY SHARES') FOR CASH AT A PRICE OF RS. 100 PER EQUITY SHARE. INCLUDING A SHARE PREMIUM OF RS. 90 PER EQUITY SHARE. AGGREGATING RS. 9,000 LAKHS (THE 'ISSUE'). THE ISSUE WOULD CONSTITUTE 49.53% OF THE FULLY DILUTED POST-ISSUE PAID UP CAPITAL Of THE COMPANY.
THE ISSUE PRICE OF THE EQUITY SHARES IS RS. 100 PER EQUITY SHARE WHICH IS 10 TIMES THE FACE VALUE OF THE EQUITY SHARES.

The issue is being made through the 100% Book Building process wherein up to 50% of the issue was to be allotted to Qualified Institutional Buyers on a proportionate basis out of which 5% was to be made available for allocation on a porportionate basis to Mutual Funds only and the remainder was to made available for allotment on a Proportionate basis to QIBs and Mutual Funds, Subject to valid bids being received from them at or above the issue price. Futher , not less than 15%  of the issue was to be made available for allocation to Non-Institutional Bidders and not less than 35% of the Issue was to be made available for allocation to Retail Individual for allocation to Retail individual Bidders on proportionate basis, Subject to valid bids being received from them at or above the issue price.
The Board of Directors of Vijayeswari Textiles Limited wish to thank the investing public for their response to the Issue which opened for subscription on Februrary 08 2007 and closed on February 19, 2007. The issue received 4672 applications for 9023870 Equity Shares, Inculding shares  by the Underwriters, resulting in 1.0026 times subscription. The details of the applications received in the Issue from Qulified Institutional Buyers('QIBs'), Non-institutional Bidders and Retail Individual Bidders before technical rejections are as under

*After eliminating cheque returns / withdrawals, but before eliminating technical rejections and shares applied by underwriters

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

The Basis of Allotment was finalised in consultation wth the Designated Stock Exchange - Bombay Stock Exchange Limited ('BSE') on Monday, March 05, 2007.

A) Allocation to Retail Individual Bidders
The Basis of Allotment to the Retail Individual Bidders, was finalized in consultation with BSE. The Company received 4563 valid applications for 681900 Equity Shares in this category resulting in 0.216 times subscription. The number of Equity Shares allotted to Retail Individual Bidders is 681900. Full and Firm allotment has been made to all valid applications in this category.

B) Allocation to Non institutional Bidders
The Basis of Allotment to the Non Institutional Bidders, was finalized in consultation with BSE. The Company received 4 valid applications for 127200 Equity Shares in this category resulting in 0.094 times subscription. The number of shares allotted to Non-Institutional Bidders is 127200. Full and Firm allotment has been made to all valid applications in this category.

C) Allocation to QIBs
Allocation to QIBs was done on a proportionate basis.

The Issue Management Committee of the Board at a meeting held at Coimbatore on March 05,2007 approved the Basis of Allotment of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants.
The Refund Orders/Confirmation of Allocation Note (CAN) in respect of refunds due to applicants has been dispatched to the addresses of the investors as registered with the depositories on March 6,2007, In case the same is not received within ten days, investors may contact the 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 equity shares alloted to the successful applicants have been credited to their respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has made listing application to the Madras Stock Exchange Limited and Bombay Stock Exchange Limited on March 5,2007 and is taking steps to get the Equity Shares admitted for trading on the Stock Exchanges within seven working days from the date approval of Basis of Allotment.

INVESTORS PLEASE NOTE
These details of the allocation will also be available on the website of the Registrar to the Issue, Bigshare Services Private Limited, at www.bigshareonline.com .
All future correspondence in this 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 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:

Bigshare Services Private Limited
E-2/3, Ansa Industrial Estate, Saki Vihar Road, Saki Naka, Andheri (East), Mumbai - 400 072.
Tel: 91-22-2847 0652; Fax: 91-22-2847 5207
Email: ipo@bigshareonline.com; Website: www.bigshareonline.com
Contact person; Mr. H. V. K. Mohan

THE LEVEL OS SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF VIJAYESWARI TEXTILES LIMITED