Decolight IPO Basis of Allotment

DECOLIGHT CERAMICS LTD

(Our Company was incorporated as 'Decolight Ceramics Limited' under the provisions of the Companies Act, 1956 pursuant to a Certificate of Incorporation dated March 7 2000 and has bean allocated CIN U26914GJ2000PLC037494.)

Registered Office: Behind Romer Ceramics, Ghuntu Road, Morbi - 363 642, Gujarat.
Tel: + 91 2822 241 988 / +91 2822 241 156; Fax: +91 2822 241 225
E-mail: dcl@decocovering.com; Website: www.decocovering.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 80,45,557 EQUITY SHARES OF RS. 10/- EACH OF DECOLIGHT CERAMICS LIMITED (HERE IN AFTER REFERRED TO AS THE 'COMPANY' OR 'ISSUER') AT A PRICE OF RS. 54/- PER EQUITY SHARE FOR CASH AGGREGATING RS. 4344.60 LAKH (HERE IN AFTER REFERRED TO AS THE 'ISSUE') INCLUDING PROMOTER'S CONTRIBUTION OF 1,66,668 EQUITY SHARES OF RS. 10/- EACH AT A PRICE OF RS. 54/- PER EQUITY SHARE FOR CASH AGGREGATING RS.90.00 LAKH (HERE IN AFTER REFERRED TO AS THE 'PROMOTER'S CONTRIBUTION') AND NET ISSUE TO THE PUBLIC OF 78,78,889 EQUITY SHARES AT A PRICE OF RS. 54/- PER EQUITY SHARE AGGREGATING RS. 4254.60 LAKH (HERE IN AFTER REFERRED TO 'NET ISSUE')
THE NET ISSUE WILL CONSTITUTE 42.98 % OF THE POST ISSUE PAID-UP CAPITAL OF OUR COMPANY.

ISSUE PRICE Rs. 54/- PER EQUITY SHARE
THE ISSUE PRICE IS 5.4 TIMES OF THE FACE VALUE

This Issue was made through a 100% Book Building Process wherein upto 50% of the Net Issue (subject to mandatorily minimum 10%) will be allocated to Qualified Institutional Buyers (QIBs) on a proportionate basis, subject to valid bids being received at or above the Issue Price. Out of the portion available for allocation to the QIBs, 5% will be available for allocation to Mutual Funds only. Mutual Fund Bidders shall also be eligible for proportionate allocation under the balance available for the QIBs. Further, atleast 15% of the Net Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and atleast 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.
The Issue received 11793 bids/applications for 13416242 Equity Shares resulting in 1.7028 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 Friday, June 8,2007. The Board of Directors of the Company at its meeting held on Saturday, June 9,2007 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 3.4496 times. 11259 valid applications for 9512625 Equity Shares were received against an offer of 2757612 Equity Shares. After adjusting the under subscription from the QIB category, a total 5473895 Equity Shares were allotted in this category due to which the over subscription ratio reduced to 1.7378 times.
All the valid applicants In this category, except the applicants for 125 shares, have been given firm allotment on proportionate basis inverse to the over subscription ratio. For applicants applying for 125 Shares, 125 Equity Shares have been allocated to 19 applicants out of every 33 applicants.

B) Allocation to Non Institutional Bidders
The Non institutional category was over subscribed 1.9345 times. 46 valid applications for 2286250 Equity Shares were received against an offer of 1181834 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 2 valid applications for 1225000 equity shares in this category resulting in 0.3110 times subscription. Full & firm allocation was made to all applicants in this category. The under subscription under this category of 2714443 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 Monday, June 11, 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 Tuesday, June 12, 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, BIGSHARE SERVICES PRIVATE LIMITED at www.bigshareonline.com.
All future correspondence in respect of allotment of Equity Shares pertaining to the Issue may be addressed to the Registrar to the Issue, BIGSHARE SERVICES PRIVATE 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:

BIGSHARE SERVICES PRIVATE LIMITED
E-2/3, Ansa Industrial Estate, Saki Vihar Road, Saki Naka, Andheri (East), Mumbai 400 072.
Tel: 91 -22-40430200, Fax: 91 -22-2847 5207,
Website: www.bigshareonline.com   Email: ipo@bigshareonline.com
Contact Person: Mr.AshokShetty

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 DECOLIGHT CERAMICS LTD.