Cinemax IPO Basis of Allotment

CINEMAX INDIA LIMITED

(Originally incorporated on May 22,2002 as Cineline Entertainment (India) Private Limited under the Companies Act, 1956. Our company name was changed to Cinemax Cinemas (India) Private Limited on December 23, 2005. Our Company was subsequently converted to a public limited company and the name was changed to Cinemax India Limited on June 12,2006.)

Corporate and registered office: 805,8th Floor, 349 Business Point, Western Express Highway, Andheri (East),
Mumbai 400 069.
Tel: +91 22 6710 1991-95 Fax: +91 22 2684 5337/6677 8321

Contact Person: Mr. Amit Shah, Company Secretary. E-mail: investor@cinemax.co.in, Website: www.cinemax.co.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 8,920,000 EQUITY SHARES OF Rs. 10 EACH ('EQUITY SHARES') FOR CASH AT A PRICE OF RS. 155 PER EQUITY SHARE AGGREGATING RS. 1382.60 MILLION, COMPRISING OF A FRESH ISSUE OF 7,000,000 EQUITY SHARES BY CINEMAX INDIA LIMITED ('CIL', 'COMPANY' OR 'ISSUER') AND AN OFFER FOR SALE OF 1,920,000 EQUITY SHARES BY THE SELLING SHAREHOLDERS. THE FRESH ISSUE AND THE OFFER FOR SALE ARE JOINTLY REFERRED TO AS THE 'ISSUE'. 60,000 EQUITY SHARES OF RS. 10 EACH WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY EMPLOYEES (AS DEFINED HEREIN), (THE 'EMPLOYEE RESERVATION PORTION'). THE OFFER OF EQUITY SHARES OTHER THAN THE EMPLOYEE RESERVATION PORTION SHALL BE CALLED THE 'NET ISSUE'. THE ISSUE WILL CONSTITUTE 31.86% OF THE FULLY DILUTED EQUITY SHARE CAPITAL OF OUR COMPANY. THE NET ISSUE WILL CONSTITUTE 31.64% OF THE FULLY DILUTED EQUITY SHARE CAPITAL OF OUR COMPANY.

The Book Running Lead Managers are Enam Financial Consultants Private Limited, JM Morgan Stanley Private Limited,, Edelweiss Capital Limited, and Ambit Corporate Finance Private Limited. The Equity Shares of the Company are proposed to be listed on The Bombay Stock Exchange Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and trading is expected to start on or around February 15,2007. The Issue is being made through the 100% Book Building Process wherein atleast 50% of the Net Issue shall be allotted on a proportionate basis to Qualified Institutional Buyers ('QIBs'). 5% of the QIB Portion shall be available for allocation to Mutual Funds only and the remaining QIB Portion shall be available for allocation to the QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 50% of the Net Issue cannot be allotted to QIBs, then the entire application money will be refunded. Further, upto 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and upto 35% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Further, up to 60,000 Equity Shares shall be available for allocation on a proportionate basis to the Employees, subject to valid Bids being received at or above the Issue Price. The Company has not opted for grading of the Issue. The issue received 146,336 applications for 373,384,305 Equity Shares resulting in 41.86 times subscription. The details of the applications received in the Issue from QIBs, Non Institutional Bidders, Retail Individual Bidders and Eligible Employees (Before technical rejections) 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 consulting with the National Stock Exchange ('NSE') on February 6,2007. The IPO Committee of Directors of the Company at its meeting held on February 7,2007 approved the Basis of Allocation of Equity Shares in the Issue and has allotted equity Shares to various successful applicants.

A) Allocation to Non Institutional Bidders:
This category (net of technical rejections) was over subscribed 42.19 times. The total number of shares allotted in this category is 1328960 Equity Shares. The category wise details of the Basis of Allocation in this category are as under (sample):

B) Allocation to Retail Individual Bidders: This category (net of technical rejections) was over subscribed 15.22 times. The total number of shares allotted in this category is 3101040 Equity Shares. The category wise details of the Basis of Allocation in this category are as under:

C) Allocation to Eligible Employees: This category (net of technical rejections) was over subscribed 1.07 times. The total number of shares allotted in this category is 60000 Equity Shares. The category wise details of the Basis of Allocation in this category are as under (Sample):

D) Allocation to Qualified Institutional Buyers:

The Refund Orders due to applicants will be dispatched to the address of the Investors as registered with the depositories on February 8,2007. 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 Equity Shares allotted to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned on February 7,2007. The listing applications will be filed with the BSE and NSE on February 8,2007 and the Company is taking steps to get the Equity Shares admitted fortrading on the BSE and NSE within seven working days from the date of approval of the Basis of Allocation. Investors Please Note: The details of allocation made would be hosted on the website of the Registrar to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com Further 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 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: C-13, Pannalal Silk Mills Compound, L.B.S Marg, Bhandup West,
Mumbai 400 078., Tel: + 91 22 2596 0320. Fax: + 91 22 2596 0329, Email: cinemaxipo@intimespectrum.com, Website:www.intimespectrum.com,
Contact Person: Mr. Salim Shaikh

For Cinemax India Limited
On Behalf of the Board of Directors
Sd/-
Authorized Signatory