Bhagwati Hotels IPO Basis of Allotment

BHAGWATI BANQUETS AND HOTELS LTD

(Originally incorporated as Bhagwati  Banquets(P) Ltd on1st November, 1999, the Company was subsequently converted into public limited Company and the fresh certificate of incorporation was granted to the company on 13th April, 2000 in the name of Bhagwati Banquets And Hotels Ltd)

Regd Office: Plot No, 380, Sarkhej Gandhinagar Highway, Bodakdev, Ahmedabad-380054
The registered office of the Company was changed from 73, white House, Panchivati, Ellisbridge, C.G. Road Ahmedabad-380006 to the present address w.e.f October 17, 2005. Tel: +91 79 26841000, Fax: +91 79 26840915:
Email:companysecretary@thegrandbhagwati.com; website: www.thegrandbhagwati.com
Contact Person: Mr. Nimesh Shah, Company Secretary and Compliance Officer

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 2,30,00,000 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF Rs.40/- PER EQUITY SHARE(INCLUDING A SHARE PREMIUM OF RS.30/- PER EQUITY SHARE) AGGREGATING Rs.9200.00 LACS BY BHAGWATI BANQUETS AND HOTELS LIMITED ('THE COMPANY' OR 'ISSUER') ( HEREINAFTER REFERRED TO AS THE 'ISSUE') COMPRISING PROMOTERS CONTRIBUTION OF 45,44,600 EQUITY  SHARES OF Rs.10/- EACH AT A PRICE OF Rs.40/- FOR  CASH AGGREGATING TO Rs.1817.84 LACS(HEREINAFTER REFERED TO AS THE 'PROMOTERS CONTRIBUTION') AND A NET ISSUE TO THE PUBLIC OF 1,84,55,400 EQUITY SHARES OF RS.10/- EACH AT A PRICE OF RS. 40/- FOR CASH AGGREGATING TO RS.7382.16 LACS(HEREINAFTER REFERRED TO AS THE NET ISSUE.) OF WHICH 18,45,540 EQUITY SHARES BEING 10% OF THE NET ISSUE TO BE COMPULSORILY ALLOTED TO QIBS. THE NET ISSUE TO PUBLIC WOULD CONSTITUTE 63.02% OF THE POST ISSUE PAID UP CAPITAL OF THE COMPANY.

ISSUE PRICE Rs. 40/- PER EQUITY SHARE
THE ISSUE PRICE IS 4.0 TIMES OF THE FACE VALUE

The issue was made thorugh the 100% Book Building Process wherein upto 50% if the Net issue to the Publice Shall be allocated on a proportionate basis to Qualified Institutional Buyers, Out of which 5% of the QIB Portion shall be avilable for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation a a proportionate basis to all Qulified institutional Buyers, including Mutual Funds, Subjects to valid Bids being recevied at or above issue Price. Further, At least 15% of the Net issue to the public Shall be available for allocation on a proportionate basis to Non- Institutional Bidders and at least 35% of the Net issue to the public shall be avilable  for allocation on a protionate basis to Retail individual Bidders, Subject to Valid Bids being received at or above the issue Price.

The issue received 16713 bids/applications for 26351675 Equity Share resulting in 1.4278 times over subscription. The details of the bids/applications received (before technical rejections) In the issue from Qualified Institutional Bidders, non institutional bidders and retail individual bidders are as under:

Final Demand:
A summary of the final demand at various price levels as per the electronic book is given below:

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange ('BSE') on Tuesday, May 08, 2007. The Board of Directors of the Company at its meeting held on Tuesday, May 08, 2007 approved the Basis of Allocation of Equity Shares in the Issue and allotted the Equity Shares to various successful applicants.

A) Allocation to Retail Individual Bidders

The retail category was over subscribed 2.5839 times. 16370 valid applications for 16690100 Equity Shares were received against an offer of 6459390 Equity Shares. After adjusting the under subscription from the QIB category, a total 11774615 Equity Shares were allotted in this category due to which the over subscription ratio reduced to 1.4174 times.

All the valid applicants in this category, except the applicants for 175 shares, have been given frim allotment on proportionate basis inverse to the over subscription ratio. For applicants applying for 175 Shares, 175 Equity Shares have been allocated to 29 applicants out of every 41 applicants.

B) Allocation to Non Institutional Bidders

The Non Institutional category was over subscribed 1.8870 times. 93 valid applications for 5223925 Equity Shares were received against an offer of 2768310 Equity Shares.

All the valid applicants in this category have been given firm allotment on proportionate basis inverse to the over subscription ratio.

C) Allocation to Qualified Institutional Buyers

The Company had received 3 valid applications for 3912475 equity shares in this category resulting in 0.4239 times subscription. Full & firm allocation was made to all applicants in this category. The under subscription under this category of 5315225 shares was added to the retail category. The details of shares allocated in this category are as under.

The ECS intimation, Refund Orders / Allotment Intimations cum Notice due to applicants have been dispatched to the address of the Investors as registered with the depositories on Wednesday, May 9, 2007. In case the same is not received within ten days, Investors may contact 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 allotted to successful applicants will be credited to their beneficiary accounts on Thursday, may 10, 2007 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 Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of basis of allocation.

Investors may please note:

The details of allocation / allotment made are available on the website of the Registrar to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com All future correspondence in respect of allotment of Equity Shares pertaining to the Issue may be addressed to the Registrar to the Issue, Intime Spectrum Registry Limited, quoting the full name of the first / sole applicant, serial number of the bid cum application form, number of Equity Shares bid for, name of the member of the syndicate, place where the bid was submitted and payment details at the address given below:

INTIME SPECTRUM REGISTRY LIMITED (Unit: Bhagwati Banquets and Hotels Ltd)
C-13,Pannalal SilkMillsCompound, LBS Marg, Bhandup(West), Mumbai 400078
Phone:(91-22)25960320; Fax: (91-22)25960329,
Email : bbhl@intimespectrum.com Website: www.intimespectrum.com
Contact Person : Mr.Sachin Achar