Zylog IPO Basis of Allotment

ZYLOG SYSTEMS LIMITED

(incorporated as Zylog Systems Private Limited on June 1,1995 under the Companies Act, 1956 and was later
converted into a public limited company on May 11,2000 and name was changed to Zylog Systems Limited).
Regd./Corporate Office: 82/40, First Main Road, CIT Nagar, Nandanam, Chennai 600 035.
Tel:+91 -44- 4286 7000, Fax:+91 -44- 2432 6420.
Email: secretarial@zylog.co.in Website: www.zsl.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 36,00,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 350/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 340/- PER EQUITY SHARE) AGGREGATING TO RS 1,260 MILLION (REFERRED TO AS "THE ISSUE"). THE ISSUE COMPRISED A RESERVATION OF 1,00,000 EQUTY SHARES FOR SUBSCRIPTION BY EMPLOYEES OF RS.10/- EACH. THE ISSUE CONSTITUTES 21.28% OF THE FULLY DILUTED POST ISSUE CAPITAL OF ZYLOG SYSTEMS LIMITED. ("COMPANY" OR "ISSUER").

THE FACE VALUE PER EQUITY SHARE IS RS. 10/-.

THE ISSUE PRICE PER EQUITY SHARE IS RS. 350/- AND IT IS 35 TIMES THE FACE VALUE.

The Issue 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") (including 5% of the QIB portion that was to specifically be allotted to mutual funds), further, up to 10% of the net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the net 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 2,58,036 applications for 27,18,90,045 equity shares resulting in 75.52 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 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 August 07,2007.

A. Allocation to Employees
The Basis of Allocation to the Employees, who have bid at cut-off or at and above the Issue Price of Rs.350 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 1.06 times. The total number of shares allotted in this category is 100000 Equity Shares to 35 successful applicants. 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 the Retail Individual Investors, who have bid at cut-off or at and above the Issue Price of Rs.350 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 33.84 times. The total number of shares allotted in this category is 1050000 Equity Shares to 52500 successful applicants. The category-wise details of the Basis of Allocation (sample) are as under:

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at cut-off or at and above the Issue Price of Rs.350 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 137.86 times. The total number of shares allotted in this category is 350000 Equity Shares to 308 successful applicants. The category-wise details of the Basis of Allocation (sample) are as under:

D. Allocation to QIBs (After Technical Rejections)
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (1,05,000) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (19,95,000) on proportionate basis.

The Committee of Directors of the Company at it's meeting held at Chennai on August 07,2007 has approved the basis of allocation of shares and has allotted the shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices (where applicable) 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 Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrars to the issue, Karvy Computershare Private Limited at www.karvy.com or http://kcpl.karvy.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:

Karvy Computershare Private Limited
Unit: Zylog Systems, Plot No. 17 to 24, Vitharao Nagar,
Hitech City Road, Madhapur, Hyderabad -500081,
Fax: 021-23420814 Email: einward.ris@karvy.com

TOLL FREE - HELPLINE NUMBER
1 -800-3452101