VMS Industries IPO Basis of Allotment

VMS INDUSTRIES LIMITED

(The Company was originally incorporated as 'Varun Management Services Private Limited' on December 2, 1991 under the Companies Act, 1956 at Bhavnagar vide Certificate of incorporation bearing Registration Number 04-16714 of 1991-92 issued by the Registrar of Companies, Gujarat, Dadra & Nagar Haveli ('RoC'). The name of our Company was changed to 'VMS Industries Private Limited' vide fresh Certificate of Incorporation dated May 22, 2007. Subsequently our Company was converted into a public limited company and its name was changed to 'VMS Industries Limited^'  vide fresh Certificate of Incorporation dated January 29, 2010. For further details of change in the name and registered office of our Company, please refer the section titled 'History and Certain Corporate Matters' on page 98 of the Red Herring Prospectus.)

Registered Office: 2^nd Floor, Jain House, Opp. Vitthalwadi, Bhavnagar-364 003, Gujarat, India.
Tel.: +91-278-2432371; Fax: +91-278-2428352

Corporate Office: B-1006, Nar-Narayan Complex, Near Swastik Char Rasta, Navrangpura,
Ahmedabad - 380 009, Gujarat, India.

Tel: +91-79-4032 0484/ 3190 0484; Fax: +91-79-2692 0195;
Website: www.vmsil.com;  Email: info@vmsil.com

Contact Person: Mr. Hemal Patel, Company Secretary & Compliance Officer

This Issue is being made in terms of Regulation 26 (1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and through the 100% Book Building process wherein upto 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyer ('QIB') Bidders, out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only and the remaining QIB portion shall be available for allocation on proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received from them at or above the Issue Price.

Our Company thanks all the Investors for their response to our Initial Public Offer (IPO) which opened for subscription on May 30, 2011 and closed on June 2, 2011. The Issue received 2,428 applications for 94,70,080 equity shares from Non-Institutional and Retail Individual Bidders resulting in 1.47 times subscription. However no applications were received under QIB category. The details of the applications received in the Issue from Non-Institutional and Retail Individual Investors categories are as under: (Before technical rejections)

Final Demand
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 June 09, 2011

A. Allocation to Retail Individual Investors (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 40 per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 1.56 times. The total number of shares allotted in Retail Individual Investor category is 52,43,027 Equity Shares (including 727 Equity Shares for rounding off) to 2,216 successful applicants which includes the spill over of 29,89,175 equity shares from QIB Category. The category-wise details of the Basis of Allocation are as under:

B. Allocation to Non Institutional Investors (After Technical Rejections)

The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price Rs 40 per Equity Share, was finalized in consultation with BSE. This category has been subscribed to the extent 0.62 times. The total number of shares alloted in this category is 11,95,200 Equity Shares to 14 successful applicants, which includes the spill over of 2,29,575 equity shares from QIB Category. The category-wise details of the Basis of Allocation are under:

The Board of Directors of the Company at its meeting held on June 10, 2011 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 allotment advice and/or notices have been dispatched to the address of the investors as registered with the depositories on June 11, 2011 and the instructions to Self Certified Syndicate Bank ('SCSBs') have been dispatched on June 11, 2011. 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 BankAccount details as registered, if any, with the depositories. The shares allocated to successful applicants are 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 to trading on BSE on or before June 15, 2011.

INVESTORS PLEASE NOTE

This details of the allocation made would be hosted on the website of Registrars to the Issue, Cameo Corporate Services Limited at Website: www.cameoindia.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:

Cameo Corporate Services Limited
'Subramanian Building', No. 1 Club House Road,
Chennai - 600 002.
Tel.: +91-44-2846 0390 / 2846 0425,
Fax: 91-44- 2846 0129 E-mail: vmsipo@cameoindia.com,
Website: www.cameoindia.com

Place:   Bhavnagar
Date :  11-06-2011

For VMS Industries Limited
on behalf of Board of Directors
Sd/-
Managing Director

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF VMS INDUSTRIES LIMITED.

Note: All capitalized terms used and note defined herein shall have the respective meanings assigned to them in the prospectus