Voltamp IPO Basis of Allotment

VOLTAMP TRANSFORMERS LIMITED

((Our Company was Incorporated on March 2,1967 as 'Voltamp Transformers Private Limited' at Ahmedabad under the Companies Act, 1956, with the Registration No. 1437 of 1967. Subsequently, we became a deemed public company on July 11, 1989 as per Section 43A of the Companies Act, 1956. In 2001 we converted back to private company under section 43A(2A) of the Companies Act, 1966 as 'Voltamp Transformers Private Limited' with effect from May 8, 2001. On February 6, 2006, our Company was again converted to a public limited company as 'Voltamp Transformers Limited'). For further details, please see section titled 'Notes to Risk Factors' on page xix of the Prospectus.)

Registered and Corporate Office: Makarpura, Vadodara -390 014, Gujarat.
Tel: + 91265 2642011, +91265 2642012 Fax: + 91265 2648454, + 91265 2646774,
E-Mall: vnm_ipo@voltamptransformers.com; Website: www.voltamptransformers.com,
Contact Person/ Compliance Officer: Mr. Vallabh Nanjibhai Madhani

BASIS OF ALLOCATION

OFFER FOR SALE OF 4,883,840 EQUITY SHARES OF RS. 10/- EACH BY THE SELLING SHARE HOLDERS AT A PRICE OF RS. 345/- PER EQUITY SHARE FOR CASH AGGREGATING RS. 1684.92 MILLION (HEREINAFTER REFERRED TO AS THE 'OFFER'), INCLUDING EMPLOYEE RESERVATION OF 244,192 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH AND A NET OFFER TO THE PUBLIC OF 4,639,648 EQUITY SHARES OF RS. 10/- EACH AT A PRICE OF RS. 345. THE OFFER SHALL CONSTITUTE 48.27% OF THE FULLY DILUTED POST OFFER PAID UP-CAPITAL OF OUR COMPANY THE NET OFFER SHALL CONSTITUTE 45.86% OF THE FULLY DILUTED POST OFFER PAID-UP CAPITAL OF OUR COMPANY.

ISSUE PRICE Rs. 345/- PER EQUITY SHARE
ISSUE PRICE IS 34.5 TIMES THE FACE VALUE OF RS. 10/-

This Offer for Sale is being made through a 100% Book Building Process wherein up to 50% of the Net Offer shall be allotted on a proportionate basis to Qualified Institutional Buyers ('OIBs'); wherein 5% of the OIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15% of the Net Offer shall. be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Offer Price. Further, 244,192 Equity Shares shall be available for allocation on a proportionate basis to eligible Employees, subject to valid Bids being received at or above the Offer Price. The Company has not opted for grading of this offer.

Final Demand

The Offer received 64921 applications for 84988600 shares resulting in over subscription of 17.4 times. The details of applications received in the Issue from Employee , Qualified Institutional Buyer, Retail Individual Investors and Non-
Institutional Investors categories (before technical rejections) are as under.

The final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange ('BSE') on September 11, 2006. The final demand at different bid prices and allocation of shares in following 4 categories is as under:

A. Allocation to Employees

The Employee category was subscribed 0.20042 times. Firm & full allotments have been made against all 36 applications. 48940 equity shares have been allotted in this category against the reservation of 244,192 equity shares. The under subscription of 195252 shares have been added to the Retail and Non Institutional category. All the valid applicants have received full allotment.

B. Allocation to QIBS

Allocation to QIBs have been done on a proportionate basis. As per SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (115,991) and the unsatisfied demand of Mutual Funds and other QIBs were allotted the balance available shares (2,203,833) on proportionate basis. Mutual Funds were allotted 28.37 % in the QIB segment and other QIB applicants were allotted 71.63 % of the shares. The break up of application received within the QIB segment is as under

C.Allocation to Retail Investors

The Retail category was category was over subscribed 6.47592 times. 63360 applications for 10516100 equity shares were received against an offer of 1,623,877 equity shares.. After adjusting the under subscription from the Employee category, a total of 1721503 equity shares were allotted in this category, due to which the over subscription ratio was reduced to 6.10867 times.. The category-wise details of the basis of allocation ( partial ) are as under:

D. Allocation to Non Institutional Investors

The Non Institutional category was over subscribed 22.5761 times.239 applications for 15711800 equity shares were received against an offer of 695,947 equity shares.   Subsequent to the spill over of 97626 shares from the Employee category, a total of 793573 equity shares have been allotted, due to which the over subscription ratio was reduced to
19. 79881 times. The category-wise details of the basis of allocation (partial) are as under:

The Board of Directors of the Company at its meeting held at Baroda on September 12, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to successful applicants.

The ECS intimation, Refund Orders and allotment advice and notice has been dispatched on September 13, 2006 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 have been credited to their beneficiary accounts September 13, 2006 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 the National Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

The detail of allocation made would be hosted on the website of Registrar to the Issue, Intime Specturm Registry Limited at www.intimespectrum.com.
All future correspondence in this regard may kindly be addressed to the Registrar 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:

Intime Spectrum Registry Limited
Unit: Voltamp Transformers Limited,
C-13, Pannalal Silk Mills Compound. LBS Road,
Bhandup West, Mumbai -400 078.
INTIME SPECTRUM
Tel No.: +91-22-25960320,
Fax No.: +91-22-25960329,
Email: vishwasa@intimespectrum.com