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May 4, 2016 - May 11, 2016

Parag Milk IPO Basis of Allotment

PARAG MILK FOODS LIMITED

Our Company was incorporated as Parag Milk & Milk Products Private Limited on December 29,1992 with the registrar of companies at Mumbai with our registered office at Pune as a private limited company under the Companies Act, 1956. The name of our Company was changed to Parag Milk Foods Private limited and a fresh certificate of incorporation consequent upon change of name was granted by the Registrar of Companies. Maharashtra at Pune ('RoC') on April 11,2008. Our Company was converted into a public limited company pursuant to approval of the shareholders at an extraordinary general meeting held on May 16,2015. Consequently, the name of our Company was changed to Parag Milk Foods Limited and a fresh certificate of incorporation consequent upon conversion to a public limited company was granted to our Company by the RoC on July 7,2015. For details of changes in the name and Registered Office of our Company, see 'History and Certain Corporate Matters' on page 162 of the prospectus dated May 13,2016 and filed with the RoC ('Prospectus').

Registered Office: Flat No, 1, Plot No. 19. Nav Rajasthan Society, S.B. Road, Shivaji Nagar, Pune 411 016; Corporate Office: 20th floor, Nirmal Building, Nariman Point, Mumbai 400 021, Contact Person: Rachana Sanganeria, Company Secretary and Compliance Officer; Tel: (91 22)4300 5555; Fax: (91 22) 4300 5580; Email: cs@paragmilkfoods.com ;Website: www.paragmilkfoods.com: Corporate Identity Number: U15204MH1992PLC070209.

BASIS OF ALLOTMENT

Our Company has fifed the Prospectus with the RoC and the Equity Shares are proposed to be listed on the BSE Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading will commence on May 19,2016.

PUBLIC ISSUE OF 34,271,268 EQUITY SHARES OF FACE VALUE OF RS.10 EACH (THE 'EQUITY SHARES') OF PARAG MILK FOODS LIMITED (OUR 'COMPANY' OR 'ISSUER') FOR CASH AT A PRICE OF RS.215* PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 205 PER EQUITY SHARE} AGGREGATING TO RS.7,505.37 MILLION CONSISTING OF A FRESH ISSUE OF13,698,695 EQUITY SHARES AGGREGATING UP TO RS.3,000 MILLION AND AN OFFER FOR SALE OF 20,572,573 EQUITY SHARES COMPRISING OF 14,286,449 EQUITY SHARES BY THE INVESTOR SELLING SHAREHOLDERS AND 6,286,124 EQUITY SHARES BY THE OTHER SELLING SHAREHOLDERS (AS DEFINED IN THE PROSPECTUS) (THE OFFER FOR SALE AND THE FRESH ISSUE ARE COLLECTIVELY REFERRED TO AS THE 'ISSUE'). THE ISSUE INCLUDES A RESERVATION OF 284,505 EQUITY SHARES (ORIGINAL RESERVATION OF 300,000 EQUITY SHARES) AGGREGATING TO RS.57.75 MILLION FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED IN THE PROSPECTUS) (THE 'EMPLOYEE RESERVATION PORTION'). THE ISSUE LESS EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE NET ISSUE. THE ISSUE AND THE NET ISSUE CONSTITUTE 40.74% AND 40.41%, RESPECTIVELY, OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

ISSUE PRICE: RS 215* PER EQUITY SHARE OF FACE VALUE OF RS 10 EACH
ANCHOR INVESTOR ISSUE PRICE; RS 227 PER EQUITY SHARE
THE ISSUE PRICE IS 21.5 TIMES THE FACE VALUE

*Discount of Rs 12 per Equity Share has been offered on the Issue Price to Eligible Employees and Retail Individual Bidders

Risks to Investors:

i. The four BRLMs associated with the Issue have handled 18 public issues in the past three years out of which 7 issues closed be low the issue price on listing date,
ii. Average cost of acquisition of Equity Shares for the Promoters of the Company is in the range of Rs 1.01 to Rs 1.90 and the average cost of acquisition for the selling shareholders is in the range of Rs 3.14 to Rs 109.75 and the Anchor Investor Issue Price is as high as Rs 227 and the Issue Price is as high as Rs 215* (for all Investors other than Anchor Investors)

*Discount of Rs 12 per Equity Share has been offered on the Issue Price to Eligible Employees and Retail individual Bidders.

BID/ ISSUE PERIOD: OPENED ON: WEDNESDAY, MAY 4, 2016;
CLOSED ON WEDNESDAY, MAY 11, 2016(1)
ANCHOR INVESTOR BID/ISSUE PERIOD: TUESDAY, MAY 3, 2016

(1) In accordence with regulations 46(2) of the SEBI Regulations, on account of revision of the price Band, the Bid/Issue Period was extended by three Working Days and the Bid/issue period consequently closed on May 11, 2016 instead of the earlier scheduled May 6,2016.

In terms of Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended ('SCRR') the Equity Shares issued In the Issue shall aggregate to at least such percentage of the post-Issue Equity Share capital of our Company (calculated at the Issue Price) that will be at least Rs. 4,000 million and the post-Issue capital of our Company at the Issue Price will be more than Rs. 16,000 million but less than or equel to Rs. 40,000 million. The Issue has been made through the Book Building Process, in compliance with Regulation 26(2) of the SEBI Regulations, wherein at least 75% of the Net Issue has been Allotted on a proportionate base toQualified Institutional Buyer('QIBs') (the 'QIB Portion'), of which our Company in consultation with the Investor Selling Shareholders and the BRLMs. allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. 5% of the QIB Portion {excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mulual Funds only, and the remainder of the QIB Portion was available for allocation on a proportionate basis to all QlB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not more than 15% of the Net Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Net Issue was available for allocation to Retail Individual Bidders in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the 'SEBI Regulations'), subject to valid bids being received at or above the Issue Price. Further. 300,000 Equity Shares were available for allocation on a, proportionate basis 10 Eligible Employees, subject to valid bids being received from them at or above Issue Price after the Employee Discount All potential investors, other than Anchor Investors, were required to mandatorily utilise the Application Supported by Blocked Amount ('ASBA') process by providing details of their respective bank accounl which will be blocked by the Self Certified Syndicate Banks ('SCSBs') ,to participate in this Issue. For details, see'Issue Procedure' on page 373 of the Prospectus.

The Issue received 82,611 applications for 51,068,355 Equity Shares (prior to technical rejections} resulting in 1.49 times subscription. The details of the applications received in the Issue from various categories are as under (before technical rejections):

SI.
No.
Category No. of
Applications
No. of
Equity Shares
No. of
times Subscribed
Amount
(in Rs)
Shares
Reserved
A Retail Individual Bidders. 82,043 6,929,780 2.04 1,493,271,290.00 3,397,126
B Non Institutional Bidders 69 14,723,670 2.89 3,341,682,305.00 5,095,690
C Eligible Employees 456 306,540 1.02 65,869,830.00 300,000
D Qualified Institutional Buyers (Excluding Anchor Investors) 21 12,266,930 1.18 2,774,825,950.00 10,374,517
E Anchor Investors 22 16,841,435 1.12 3,823,005,745.00 15,103,935
Total 82,611 51,068,355 1.49 11,498,655,120.00 34,271,268

Final Demand
A summary of the final demand as at differed Bid prices is as under

SL. NO. BID
PRICE
BID
QUANTITY
(%) TO
TOTAL
Cumulative
Total
% Cumulative
Total
1 215 910,975 2.54 910,975 2.54
2 216 4,420 0.01 915,395 2.55
3 217 3,705 0.01 919,100 2.56
4 218 975 0.00 920,075 2.56
5 219 455 0,00 920,530 2.56
6 220 109,395 0.30 1,029,925 2.87
7 221 5,720 0.02 1,035,645 2.89
8 222 9,035 0.03 1,044,680 2.91
9 223 5,135 0.01 1.049,815 2.93
10 224 7,280 0.02 1,057,095 2.95
11 225 21,450 0.06 1,078,545 3.01
12 226 3,835 0.01 1,082,380 3.02
13 227 28,279,550) 78.80 29,361,930 81.81
14 CUTOFF 6,526,390 18.19 35,888,320 100.00
TOTAL 35,888,320 100 00

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange, being the BSE on Tuesday. May 17, 2016.

A. Allotment to Retail Individual Bldders (After Technical Rejections)

The Basis of Allotment to the Retail Individual Bidders, who have bid at the Issue Price (less discount) of  Rs 203 per Equity Share, was finalised in consultation with the BSE. This category has been subscribed to the extent of 2.013529 times (after including spillover from Eligible Employee category) The total number of Equity Shares Allotted in Relail Portion is 3,398,675 Equity Shares to 52,287 successful Retail Individual Bidder The category-wise details of the Basis of Allotment are as under

Category No. of Valid
Applications
Received
% of
Total
Total No. of
Equity Shares
Applied
% to
Total
No. of Equity
Shares Allotted
per applicant
Ratio of
allottees to
applicants
Total No. of
Equity
Shares Allotted
65 74,727 92.15 4,857,255 70.98 65 266: 411 3,131,765
130 2,749 3.39 357,370 5.22 65 29:45 116,180
195 964 1.19 187,980 2 75 65 20:31 40,480
260 608 0.75 158,080 2.31 65 20:31 25,480
325 308 0.38 100,100 1.46 65 20:31 12,935
390 250 0.31 97,500 1.42 65 20:31 10,465
455 279 0.34 126,945 1.86 65 20:31 11,700
520 133 0.16 69,160 1.01 65 20:31 5,590
585 45 0.06 26,325 0.38 65 29:45 1,885
650 159 0.20 103,350 1.51 65 20:31 6,695
715 31 0.04 22,165 0.32 65 20:31 1,300
780 37 0.05 28,860 0.42 65 24:37 1,560
845 376 0.46 317,720 4.64 65 20:31 15,730
910 427 0 53 388,570 5.68 65 20:31 17,875
975 2 0.00 1,950 0.03 65 1:2 65
1 10:2053 20
TOTAL 81,095 100 6,843,330 100.00 3,398,675

B. Allotment to Non-Institutional Bidder (After Technical Rejections)

The Basis of Allotment to the Non-institutional Bidders, who have bid at the Issue Price of Rs. 215 per Equity Share, was finalised in consultation with the BSE, The Non-institutional Portion has been subscribed to the extent of 2.887583  times (after ncluding spill over from Eligible Employee category). The total number of Equity Shares Allotted in this- category  is 5,098,014 Equity Shares to 66 successful Non- Institutional Bidders. The category-wise details of the Basis of Allotment are as under.

Category No. of Valid
Applications Received
% of
Total
Total No. of
Equity
Shares
Applied
% to
Total
No. of Equity
Shares Allotted
per applicant
Ratio of allottees to applicants Total No. of
Equity
Shares
Allotted
910 9 13.64 8,190 0.06 315 1:1 2,835
975 1 1.52 975 0,01 338 1:1 338
1,040 1 1.52 1,040 0.01 360 1:1 360
1,300 2 3.03 2,600 0.02 450 1:1 900
1,950 1 1.52 1,950 0.01 675 1:1 675
2,145 4 6.06 8,580 0.06 743 1:1 2,972
2,275 1 1.52 2,275 0.02 788 1:1 788
2,535 1 1.52 2,535 0.02 878 1:1 878
2,600 1 1.52 2,600 0.02 900 1:1 900
2,925 1 1.52 2,925 0.02 1,013 1:1 1,013
4,355 3 4.55 13,065 0.09 1,508 1:1 4,524
5,265 1 1.52 5,265 0.04 1,823 1:1 1,823
6,500 1 1.52 6,500 0.04 2,251 1:1 2,251
6,565 1 1.52 6,565 0.04 2,274 1:1 2,274
9,750 1 1.52 9,750 0.07 3,377 1:1 3,377
10,985 1 1.52 10,985 0.07 3,804 1:1 3,804
11,050 1 1.52 11,050 0.08 3,827 1:1 3,827
11,700 1 1.52 11,700 0.08 4,052 1:1 4,052
12,350 1 1.52 12,350 0.08 4,277 1:1 4,277
17,680 1 1.52 17,680 0.12 6,123 1:1 6,123
20,020 1 1.52 20,020 0.14 6,933 1:1 6,933
20,150 1 1.52 20,150 0.14 6,978 1:1 6,978
21,775 1 1.52 21,775 0.15 7,541 1:1 7,541
44,005 2 3.03 88,010 0.60 15,239 1:1 30,478
44,850 1 1.52 44,850 0.30 15,532 1:1 15,532
46,475 1 1.52 46,475 0.32 16,095 1:1 16,095
49,985 2 3.03 99,970 0.68 17,310 1:1 34,620
50,050 2 3.03 100,100 068 17,333 1:1 34,666
59,995 1 1.52 59,995 0.41 20,777 1:1 20,777
64,740 1 1.52 64,740 0.44 22,420 1:1 22,420
88,075 1 1.52 88,075 0.60 30,501 1:1 30,501
120,250 1 1.52 120,250 0.82 41,644 1:1 41,644
132,145 1 1.52 132,145 0.90 45,763 1:1 45,763
132,600 1 1.52 132,600 0.90 45,921 1:1 45,921
209,950 1 1.52 209,950 1.43 72,708 1:1 72,708
220,220 3 4.55 660,660 4.49 76,264 1:1 228,792
265,200 1 1.52 265,200 1.80 91,842 1:1 91,842
396,435 1 1.52 396,435 2.69 137,290 1:1 137,290
440,505 2 3.03 881,010 5.98 152,552 1:1 305,104
616,720 1 1.52 616,720 4.19 213,577 1:1 213,577
704,860 1 1.52 704,860 4.79 244,100 1:1 244,100
1,136,005 1 1.52 1,136,005 7.72 393,410 1:1 393,410
1,431,235 1 1.52 1,431,235 9.72 495,652 1:1 495,652
1.820,000 1 1.52 1,820,000 12 36 630,285 1:1 630,285
2,643,160 1 1.52 2,643,160 17.96 915,354 1:1 915,354
2,777,970 1 1.52 2,777,970 18.87 962,040 1:1 962,040
TOTAL 66 100.00 14,720,940 100.00 1:1 5,098,014

C. Allotment to Eligible Employees (After technical Rejections)

The Basis of Allotment to Eligible Employees, who have bid at the Issue Price (less discount) of Rs.203 per Equity Share was finalised in consultation with the BSE. The Employee Reservation Portion has been subscribed to the extent of 0.948350 times. The lotal number of Equity Shares Allotted in this category is 284,505 Equdy Shares to 401 successful Eligible Employees. The category-wise details of the Basis of Allotment are as under.

Category No. of Valid
Applications
Received
% of
Total
Total No. of
Equity Shares
Applied
% to
Total
No. of Equity
Shares Allotted
per applicant
Ratio of
allottees to
applicants
Total No. of
Equity Shares
Allotted
65 60 14.96 3,900 1.37 65 1:1 3,900
130 18 4.49 2,340 0.82 130 1:1 2,340
195 5 1.25 975 0.34 195 1:1 975
260 9 2.24 2,340 0.82 260: 1:1 2,340
325 2 0.50 650 0.23 325 1:1 650
390 1 0.25 390 0.14 390 1:1 390
455 7 1.75 3,185 1.12 455 1:1 3,185
585 1 0.25 585 0.21 585 1:1 585
845 16 3.99 13,520 4.75 845 1:1 13,520
910 282 70.32 256,620 90 20 910 1:1 256,620
TOTAL 401 100.00 284,505 100.00 284,505

D. Allotment to QIBs (excluding Anchor Investor Portion)

Allotrnent to QIBs (excluding Anchor Investor Portion), who have Bid at the Issue Price of Rs 215 per Equity Share, has been done on a proportionate bass in consolation with the BSE This calegory has been subacribed to the extent of 1.185249 tines of QIB Portion. As per SEBI Regulations, 519,307 Equity Shares (inducting spillover from Eligible Employee category) constituting upto 5% of the QlB portion (excluding the Anchor Investor portion) was available for allocation to Mulual Funds. Mutual Ftrds were allotted 233,350 Equity Shares, based on valid Bids received at or above the Issue Price. The unsubscribed portion of Mutual Funds was added back to the QIB portion. The total number of Equdy Shares Allotted in the QIB Portion (excluding Anchor Investor Portion) is 10,386,139 Equity Shares, which were allolted to 21 Successful QIB Bidders. The category-wise details of the Basis of Allotment are as under;

Category Fll MFs ICs Total
QIB 10,115,662 233,350 37,127 10,386,139

E. Allotment to Anchor Investors under Aneher Investor Portion

The Company, in consultation with the Investor Selling Shareholders and the BRLMs, has allocated 15,103,935 Equity Shares to 17 Anchor Investors (through 22 Applications) at the Anchor investor Issue Price of Rs 227 per Equity Share in accordance with the SEBI Regulations. This represents 59.25% of the overall QIB Portion.

Category FIs/Banks MFs ICs VCs AIF/FPI FII Total
Anchor - 3,524,170 - - 3,555,878 8,023,887 15,103,935

The IPO Committee of our Company at Its meellng held on May 17,2016 has taken on record the Basis of Allotrnent of Equity Shares as approved by the Designated Stock Excange, being BSE and has allotted the equity shares to various successful Bidders. The Equity Shares Allotted to the successful Allottees have been uploaded on May 18,2016 for credit into the respective benefciary accounts subject to validation of the accounts details with the depositories concerned. The Company has received listing and trading approval fron BSE and NSE and the trading will commence on May 19,2016.

All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

INVESTORS PLEASE NOTE

The details of the allotrnent made will be hosted on the website of the Registrar to the Issue, Karvy Computershare Private Limited at https://karisma.karvy.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting; full nameof the first/sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for. the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder, and a copy of   the Acknowledgment Slip received from the Designated Intermediary at the address given below.

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32. Gachibowli. Financial District.
Nanakramguda. Hyderabad 500 032, Tel: (91 40) 6716 2222
Fax: (91 40) 23 43 1551; Email: einward.ris@karvy.com
Investor grievance E-mail: parag.ipo@Karvy.com
Website: https://karisma.karvy.com , Contact Person: M. Murli Krishna;

SEBI Registration No.; INR000000221

Place: Pune
Date: May 18,2016
For PARAG MILK FOODS LIMITED
On behalf of the Board of Directors
Sd/-
Managing Director

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 PARAG MILK FOODS LIMITED.

Parag Milk IPO Basis of Allotment FAQs

Check the basis of allotment document above to know about how the shares are allocated in Parag Milk IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

The Parag Milk IPO basis of allotment (published above) tells you how shares are allocated to you in Parag Milk IPO and category wise demand of IPO share.

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Check the basis of allotment document above to know about how the shares are allocated in Parag Milk IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).