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Den Networks IPO Details

Issue Open Oct 28, 2009
Issue Close Oct 30, 2009
IPO Price ₹195
Face Value ₹10
IPO Size ₹364.46 Cr
Listing At BSE, NSE
IPO Lot Size 30

DEN NETWORKS LIMITED

(Incorporated on July 10,2007 under the Companies Act, 1956 as "DEN Digital Entertainment Networks Private Limited" and subsequently renamed as "DEN Digital Entertainment Networks Limited" an April 15,2008. Subsequently renamed as "DEN Networks Limited" on June 27,2008). Registered Office and Corporate Office: 236, Okhla Industrial Estate Phase III, New Delhi 110 020, India. Tel No: +(91 11)4052 2225; Fax No: +(91 11) 4052 2203; Email: ipo@denonline.in; Website: www:digitelly.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 18,567,240* EQUITY SHARES OF RS. 10 EACH ("EQUITY SHARE") FOR CASH AT A PRICE OF RS. 195** PEREQUITY SHARE OF DEN NETWORKS LIMITED (THE "COMPANY") (INCLUDING A SHARE PREMIUM OF RS. 185 PER EQUITY SHARE) AGGREGATING RS. 3,644.56 MILLION (HEREINAFTER REFERRED TO AS THE "ISSUE"). THE ISSUE COMPRISES A NETISSUE TO THE PUBLIC OF 18,317,240 EQUITY SHARES ("THE NET ISSUE") AND A RESERVATION OF UP TO 250,000 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED HEREIN) ("THE EMPLOYEE RESERVATION PORTION").THE ISSUE WOULD CONSTITUTE UP TO 14.23% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY. THE NET ISSUE WOULD CONSTITUTE 14.04% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY.

*As per the Red Herring Prospectus, up to 20,000,000 Equity Shares were made available for allocation. However, based on the subscription received, the number of Equity Shares offered in the Issue is 18,567,240.
** Out of which 2,395,020 Equity Shares have been allocated to Anchor Investors at Rs. 205 per Equity Share

The Equity Share of the Company are proposed to be listed on the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) and trading is expected to commence on or about November 24, 2009.

THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 195/- AND IT IS 19.5 TIMES THE FACE VALUE. THE ANCHOR INVESTOR ISSUE PRICE IS RS. 205/- PER EQUITY SHARE.

The Issue is made through the 100% Book Building Process wherein at least 60% of the Net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs"), ("QIB Portion"). Further, 5% of the QIB Portion less Anchor Investor Portion shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. The QIB portion includes the Anchor Investor portion and the Company has allocated 23,95,020 Equity Shares to the Anchor Investors in accordance with the ICDR Regulatlons.The Issue received 4,055 applications for 1,93,35,760 equity shares resulting in 0.9668 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual investors categories and Employees are as under: (Before technical rejections)

Category

No. of Applications No. of Shares No. of times subscription
A Retail Individual Bidders 3916 4,66,070 0.0787
B Non Institutional Bidders 50 60,37,340 3.0569
C Qualified Institutional Bidders 15 1,01,58,720 1.0744
D Employees 72 2,78,610 1.1144
E Anchor Investors 2 23,95,020 1.0000
Total 4,055 1,93,35,760 0.9668

Final Demand

A sample of the final demand at different bid prices is as under:

Bid Price No. of Shares % to Total Cumulative Total Cumulative % of Total
195 1,41,39,150 77.08 1,83,44,520 100.00
196 270 0.00 42,05,370 22.92
197 0 0.00 42,05,100 22.92
198 30 0.00 42,05,100 22.92
199 0 0.00 42,05,070 22.92
200 29,640 0.16 42,05,070 22.92
201 0 0.00 41,75,430 22.76
202 0 0.00 41,75,430 22.76
203 0 0.00 41,75,430 22.76
204 90 0.00 41,75,430 22.76
205 41,75,340 22.76 41,75,340 22.76

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ("BSE") on 13.11.2009. A.

A.Employees
The Basis of Allocation to the Eligible Employees of the Den Networks Ltd, who have bid at cut-off or at the Issue Price of Rs.195/- per Equity Share or above, was finalized in consultation with BSE. The total number of shares allotted in this category is 2,50,000.
B. Allocation to Retail Individual Investors (After Technical Rejections) (Including ASBA Applications)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs.195/- per Equity Share or above, was finalized in consultation with BSE. This category has been subscribed to the extent of 0.0787 times. There were 553 applications for 76,440 Equity Shares made under ASBA process. Of these, 542 applications for 71,980 Equity Shares were found valid and they were considered for allotment. The total number of Equity Shares allotted in Retail Individual Investor category is 4,28,640 Equity Shares. The category-wise details of the Basis of Allocation are as under:

Category No. of applications %to total Total No. of Equity Shares applied %of total No. of Equity Shares allocated Ratio Total No. of Equity Shares allocated
30 2,028 54.02 60,840 14.19 30 FIRM 60,840
60 515 13.72 30,900 7.21 60 FIRM 30,900
90 270 7.19 24,300 5.67 90 FIRM 24,300
120 140 3.73 16,800 3.92 120 FIRM 16,800
150 91 2.42 13,650 3.18 150 FIRM 13,650
180 36 0.96 6,480 1.51 180 FIRM 6,480
210 32 0.85 6,720 1.57 210 FIRM 6,720
240 101 2.69 24,240 5.66 240 FIRM 24,240
270 16 0.43 4,320 1.01 270 FIRM 4,320
300 47 1.25 14,100 3.29 300 FIRM 14,100
330 9 0.24 2,970 0.69 330 FIRM 2,570
360 6 0.16 2,160 0.50 360 FIRM 2,160
390 7 0.19 2,730 0.64 390 FIRM 2,730
420 7 0.19 2,940 0.69 420 FIRM 2,940
450 10 0.27 4,500 1.05 450 FIRM 4,500
480 430 11.45 2,06,400 48.15 480 FIRM 2,06,400
510 9 0.24 4,590 1.07 510 FIRM 4,590

C. Allocation to Non Institutional Investors (After Technical Rejections)

The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs.195/- per Equity Share or above was finalized in consultation with BSE. This category has been over-subscribed to the extent of 3.0569 times. 48 applications for 60 34 880 Equity share found valid and they were considered for allotment. The total number of Equity Shares allotted in this category is 60,34,880 (including 40,59,880 Equity Shares being 73,86% of the unsubscribed portion of the Retail Category) to 48 successful applicants. The category-wise details of the Basis of Allocation (sample) are as under

Category No. ot applications % to total Total No. of Equity Shares applied % of total No. of Equity Shares allocated Ratio Total No. of Equity Shares allocated
540 1 2.08 540 0.01 540 FIRM 540
690 1 2.06 690 0.01 690 FIRM 690
960 5 10.42 4,800 0.08 960 FIRM 4,800
990 2 4.17 1,980 0.03 990 FIRM 1,980
1,020 2 4.17 2,040 0.03 1,020 FIRM 2,040
1,050 1 2.08 1,050 0.02 1,050 FIRM 1,050
1,200 1 2.08 1,200 0.02 1,200 FIRM 1,200
1,440 1 2.08 1,440 0.02 1,440 FIRM 1,440
2,400 5 10.42 12,000 0.20 2,400 FIRM 12,000
2,430 1 2.08 2,430 0.04 2,430 FIRM 2,430
2,460 1 2.08 2,460 0.04 2,460 FIRM 2,460
3,390 1 2.08 3,390 0.06 3,390 FIRM 3,390
4,080 1 2.08 4,080 0.07 4,080 FIRM 4,080
4,890 1 2.08 4,890 0.08 4,890 FIRM 4,890
7,290 2 4.17 14,580 0.24 7,290 FIRM 14,580
7,500 1 2.08 7,500 0.12 7,500 FIRM 7,500
9,750 1 2.08 9,750 0.16 9,750 FIRM 9,750
12,180 1 2.08 12,180 0.20 12,180 FIRM 12,180
44,563 1 2.08 44,563 0.74 44,563 FIRM 44,563
50,010 1 2.08 50,010 0.83 50,010 FIRM 50,010
51,000 1 2.08 51,000 0.85 51,000 FIRM 51,000
1,02,540 3 6.25 3,07,620 5.10 1,02,540 FIRM 3,07,620
1,17,877 1 2.08 1,17,877 1.95 1,17,877 FIRM 1,17,877
1,53,840 1 2.08 1,53,840 2.55 1,53,840 FIRM 1,53,840
2,05,110 3 6.25 6,15,330 10.20 2,05,110 FIRM 6,15,330
2,56,410 2 4.17 5,12,820 8.50 2,56,410 FIRM 5,12,820
3,00,000 1 2.08 3,00,000 4.97 3,00,000 FIRM 3,00,000
3,07,680 1 2.08 3,07,680 5.10 3,07,680 FIRM 3,07,680
4,61,520 1 2.08 4,61,520 7.65 4,61,520 FIRM 4,61,520
5,12,820 1 2.08 5,12,820 8.50 5,12,820 FIRM 5,12,820
10,25,640 1 2.08 10,25,640 17.00 10,25,640 FIRM 10,25,640
14,87,160 1 2.08 14,87,160 24.64 14,87,160 FIRM 14,87,160

D. Allocation to QIBs

3,720 Equity Shares being 0.1% of the unsubscribed portion of the Retail reservation were added to the QIB category Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the ICDR Regulations, Mutual Funds were initially allotted 5% of the quantum of shares available i.e. 7,01,460 and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares i.e. 87,57,240.

Category Fls/Banks Flls MFs ICs VCs Total I
No.of Shares - 47,57,250 7,01,460 39,99,990 - 94,58,700

E. Anchor Investors

The Company allotted 23,95,020 equity shares to 2 Anchor Investors in consultation with the GCBRLM & CBRLM. This represents 21.22% of the portion ean marked for allotment to Qualified Institutional Investors.
The Board of Directors of the Company at its Meeting held at New Delhi on 14.11.2009 has approved the basis of allocation of shares of the Issue and has allotted the Equity Shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched 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 Account details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants have been credited to their beneficiary accounts. Listing application have been filed with the NSE and BSE on November 17, 2009 and the Company has received approval to get the Equity Shares admitted for trading on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited on 24.11.2009. The Issue was subscribed to the extent of 1,85,67,240 (92.8362%). The remaining 14,32,760 Equity Shares made available for allocation were not allotted.
Capitalised term used herein and not defined shall have the same meaning as described to them in the prospectus dated November 5, 2009 ("Prospectus").

INVESTORS PLEASE NOTE

This details of the allocation made would be hosted on the website of Registrars to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.com
All future correspondence in this regard may kindly be addressed to the Registrars 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:

Karvy Computershare Private Limited
Unit: DEN NETWORKS LIMITED
Plot No. 17 to 24, Vitharao Nagar, Hitech City Road, Madhapur
Hyderabad - 500 081, Fax: 040-23420814 Email: einward.ris@Karvy.eom
TOLL FREE - HELPLINE NUMBER 1-800-3454001

Place : New Delhi
Date : 19.11.2009

For Den Networks Limited
Sd/-
Jatin Mahajan
Company Secretary & Compliance Officer

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 DEN NETWORKS LIMITED.

Den Networks IPO Basis of Allotment FAQs

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

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

Visit the Den Networks IPO allotment status page to check the number of shares allocated to your application.

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