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Dhanus Technologies IPO Basis of Allotment

Dhanus Technologies IPO Details

Issue Open Sep 10, 2007
Issue Close Sep 12, 2007
IPO Price ₹295
Face Value ₹10
IPO Size ₹113.13 Cr
Listing At BSE, NSE
IPO Lot Size 20
This communication is intended for release solely in India and may not be released in the United States. The securities of Dhanus Technologies Limited have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from such registration under the U.S. Securities Act of 1933, as amended.

dhanus technologies limited

(Originally incorporated on April 2,1993 as Wantech Communications Private Limited with the Registrar of Companies, Tamil Nadu, Chennai. The name of the Company was changed to Dhanus E-Com Private Limited and a fresh certificate of incorporation was obtained on August 7,2000 from the Registrar of Companies, Tamil Nadu, Chennai. Subsequently, the Company was converted into a public limited company on September 18,2000 under section 44 of the Companies Act, 1956 and the name was changed to Dhanus E-Com Limited. The name of the Company was further changed to its present name Dhanus Technologies Limited on June 25,2004.)

Registered Office: 6-B, Mena Kampala Arcade, 113/114, Sir Theyagaraya Road, T. Nagar, Chennai - 600 017. Tel.: +91 44 28151135/28151635/39180735; Fax: +91 44 39180789.
Corporate Office: Suite 4-A, 4th Floor, 'A' Block, Mena Kampala Arcade, 113/114 Sir Theyagaraya Road, T. Nagar, Chennai - 600 017.
Contact Person/Compliance Officer: Mr. V. Baskaran, CFO & Company Secretary, E-mail: ipo@dhanus.net;
Website: www.dhanus.net

BASIS OF ALLOCATION

PUBLIC ISSUE OF 38,35,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 295/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 285/- PER EQUITY SHARE) AGGREGATING TO RS. 11313.25 LAKHS (HEREINAFTER REFERRED TO AS 'THE ISSUE'). THE ISSUE COMPRISED A RESERVATION FOR ELIGIBLE EMPLOYEES OF UPTO 2,00,000 EQUITY SHARES OF RS. 10/- EACH ('EMPLOYEE RESERVATION PORTION') AND THE NET ISSUE TO THE PUBLIC COMPRISED OF 36,35,000 EQUITY SHARES OF RS. 10/- EACH ('NET ISSUE'). THE ISSUE CONSTITUTES 21.37% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY. THE NET ISSUE CONSTITUTES 20.26% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.

ISSUE PRICE IS RS. 295/- PER EQUITY SHARE OF FACE VALUE OF RS. 10/- EACH. THE ISSUE PRICE IS 29.5 TIMES OF THE FACE VALUE.

In terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended from time to time ('SCRR'), this being an Issue for less than 25% of the post-Issue capital, the Issue is made through the 100% Book Building Process wherein at least 60% of the Net Issue has been allotted on a proportionate basis to Qualified Institutional Buyers ('QIBs'), out of which 5% is available for allocation on a proportionate basis to Mutual Funds only. The remainder is available for allocation on a proportionate basis to QIBs including Mutual Funds, subject to valid bids being received from them at or above the Issue Price. If at least 60% of the Net Issue cannot be allotted to QIBs, then the entire application money will be refunded. Further, not less than 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% 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 upto 2,00,000 Equity Shares shall be available for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids being received at or above the Issue Price.
The Issue opened for subscription on Monday, September 10, 2007 and closed on Wednesday, September 12, 2007. The Issue received 1,00,206 applications for 10,84,86,300 equity shares resulting in 28.29 times subscription.
As advised by SEBI, the Company had published a public notice dated 26.09.2007 on 27.09.2007 in newspapers and the individual intimation letters dated 24.09.2007 was sent to all the applicants (including QIBs) on 25.09.2007. The Company had given an option to all the applicants (including QIBs) to withdraw their applications, if they wish to do so, within a period of ten (10) days from the date of the public notice. The last date for receipt of withdrawal was 06.10.2007. In view of the above, the Registrar has received requests for withdrawal of 17,363 applications for 5,29,85,580 shares. After considering the above withdrawals, the Issue remained oversubscribed 14.47 times.
The details of the subscriptions received in the Issue from Qualified Institutional Buyers, Non-Institutional Investors, Retail Individual Investors and Employee categories (After withdrawals & before technical rejections) are as under:

Category No. of Applications No. Shares Subscription (no. of times)
Qualified Institutional Buyers 29 3,04,45,560 13.96
Non Institutional Investors 103 87,45,860 24.06
Retail Individual Investors 82,691 1,61,04,000 14.77
Eligible Employees 20 2,05,300 1.03

Final Demands
The final demand at different bid prices is as under:

Bid Price No. of Shares % of Total Cumulative Total Cumulative % of Total
280 837680 1.44 58283480 100.00
281 140 0.00 57445800 98.56
282 80 0.00 57445660 98.56
283 100 0.00 57445580 98.56
284 60 0.00 57445480 98.56
285 107480 0.18 57445420 98.56
286 80 0.00 57337940 98.38
287 620 0.00 57337860 98.38
288 580 0.00 57337240 98.38
289 20 0.00 57336660 98.38
290 706960 1.21 57336640 98.38
291 60 0.00 56629680 97.16
292 300 0.00 56629620 97.16
293 340 0.00 56629320 97.16
294 10880 0.02 56628980 97.16
295 & CUT OFF 56618100 97.14 56618100 97.14

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange-the Bombay Stock Exchange Limited ('BSE') on Tuesday, October 9,2007.
A. Allocation to Eligible Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at cut-off or at the Issue Price of Rs. 295/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 1.03 times. The total number of shares allotted in this category is 2,00,000 Equity Shares to 20 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category No. of
Applications
% to
Total
No. of
Shares Applied
% to
Total
No. of
Shares Allocated
Ratio Total No.of
Shares Allocated
40 2 10.00 80 0.04 40 FIRM 80
60 1 5.00 60 0.03 58 FIRM 58
100 1 5.00 100 0.05 97 FIRM 97
700 1 5.00 700 0.34 682 FIRM 682
3500 1 5.00 3,500 1.70 3410 FIRM 3,410
3560 1 5.00 3,560 1.73 3468 FIRM 3,468
3600 1 5.00 3,600 1.75 3507 FIRM 3,507
3700 1 5.00 3,700 1.80 3604 FIRM 3,604
12000 2 10.00 24,000 11.69 11690 FIRM 23,380
16000 1 5.00 16,000 7.79 15587 FIRM 15,587
18000 5 25.00 90,000 43.84 17535 FIRM 87,675
20000 3 15.00 60,000 29.23 19484 FIRM 58,452

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 295/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 14.54 times. The total number of shares allotted in this category is 10,90,516 Equity Shares to 50,856 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category No.of
Applications
% to
Total
No. of
Shares Applied
% to
Total
No. of
Shares Allocated
Ratio Total No. of
Shares Allocated
20 10,767 13.26 2,15,340 1.36 20 4:57 15,080
40 6,480 7.98 2,59,200 1.63 20 11:80 17,820
60 3,768 4.64 2,26,080 1.43 20 20:97 15,540
80 2,657 3.27 2,12,560 1.34 20 11:40 14,620
100 4,741 5.84 4,74,100 2.99 20 11:32 32,600
120 1,389 1.71 1,66,680 1.05 20 33:80 11,460
140 1,088 1.34 1,52,320 0.96 20 13:27 10,480
160 9,097 11.21 14,55,520 9.18 20 11:20 1,00,100
180 1,102 1.36 1,98,360 1.25 20 13:21 13,640
200 1,876 2.31 3,75,200 2.37 20 11:16 25,800
220 369 0.45 81,180 0.51 20 31:41 5,580
240 423 0.52 1,01,520 0.64 20 33:40 6,980
260 234 0.29 60,840 0.38 20 25:28 4,180
280 179 0.22 50,120 0.32 20 49:51 3,440
300 594 0.73 1,78,200 1.12 21 58:59 12,264
320 36,406 44.85 1,16,49,920 73.47 22 FIRM 8,00,932

C. Allocation to Non-Institutional Investors (After Technical Rejections)
The Basis of Allocation to this category, who has bid at the Issue Price of Rs. 295/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 24.04 times. The total number of shares allotted in this category is 3,63,517 Equity Shares to 83 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category No. of
Applications
% to
Total
No. of Shares
Applied
% to
Total
No. of Shares
Allocated
Ratio Total No. of
Shares Allocated
340 8 9.30 2,720 0.03 20 3:4 120
360 2 2.33 720 0.01 20 FIRM 40
400 5 5.81 2,000 0.02 20 4:5 80
480 1 1.16 480 0.01 20 FIRM 20
500 3 3.49 1,500 0.02 21 FIRM 63
600 1 1.16 600 0.01 25 FIRM 25
640 1 1.16 640 0.01 27 FIRM 27
660 1 1.16 660 0.01 27 FIRM 27
680 3 3.49 2,040 0.02 28 FIRM 84
1000 2 2.33 2,000 0.02 42 FIRM 84
1680 2 2.33 3,360 0.04 70 FIRM 140
2000 2 2.33 4,000 0.05 83 FIRM 166
3700 1 1.16 3,700 0.04 154 FIRM 154
4500 1 1.16 4,500 0.05 187 FIRM 187
5500 1 1.16 5,500 0.06 229 FIRM 229
5780 1 1.16 5,780 0.07 240 FIRM 240
6400 1 1.16 6,400 0.07 266 FIRM 266
6760 2 2.33 13,520 0.15 281 FIRM 562
7000 1 1.16 7,000 0.08 291 FIRM 291
8460 3 3.49 25,380 0.29 352 FIRM 1,056
8600 1 1.16 8,600 0.10 358 FIRM 358
9000 1 1.16 9,000 0.10 374 FIRM 374
9140 1 1.16 9,140 0.10 380 FIRM 380
9600 1 1.16 9,600 0.11 399 FIRM 399
10000 4 4.65 40,000 0.46 416 FIRM 1,664
12000 1 1.16 12,000 0.14 499 FIRM 499
15000 1 1.16 15,000 0.17 624 FIRM 624
16920 1 1.16 16,920 0.19 704 FIRM 704
16940 2 2.33 33,880 0.39 705 FIRM 1,410
17000 1 1.16 17,000 0.19 707 FIRM 707
20320 3 3.49 60,960 0.70 845 FIRM 2,535
25100 1 1.16 25,100 0.29 1,044 FIRM 1,044
25420 1 1.16 25,420 0.29 1,057 FIRM 1,057
33800 1 1.16 33,800 0.39 1,406 FIRM 1,406
33880 1 1.16 33,880 0.39 1,409 FIRM 1,409
33900 1 1.16 33,900 0.39 1,410 FIRM 1,410
34000 1 1.16 34,000 0.39 1,414 FIRM 1,414
40000 1 1.16 40,000 0.46 1,664 FIRM 1,664
47440 1 1.16 47,440 0.54 1,973 FIRM 1,973
50000 4 4.65 2,00,000 2.29 2,080 FIRM 8,320
67700 1 1.16 67,700 0.77 2,816 FIRM 2,816
70000 1 1.16 70,000 0.80 2,911 FIRM 2,911
84740 1 1.16 84,740 0.97 3,525 FIRM 3,525
100000 1 1.16 1,00,000 1.14 4,159 FIRM 4,159
170000 1 1.16 1,70,000 1.95 7,071 FIRM 7,071
175000 2 2.33 3,50,000 4.00 7,279 FIRM 14,558
360000 1 1.16 3,60,000 4.12 14,973 FIRM 14,973
363500 1 1.16 3,63,500 4.16 15,119 FIRM 15,119
655000 1 1.16 6,55,000 7.49 27,243 FIRM 27,243
677980 1 1.16 6,77,980 7.76 28,199 FIRM 28,199
847500 3 3.49 25,42,500 29.09 35,250 FIRM 1,05,750
2500000 1 1.16 25,00,000 28.61 1,03,981 FIRM 1,03,981

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were allotted 50,800 shares and other QIBs were allotted the remaining available shares, i.e., 21,30,200 equity shares on proportionate basis.

Category Fls/Banks MFs Flls VCs Total
No. of Shares 1,64,355 50,800 19,00,494 65,351 21,81,000

The Board of Directors of the Company has, at its Meeting held at Chennai on October 11,2007, approved the basis of allocation of Equity Shares and allotted the Shares to various successful applicants, in consultation with the BSE. The Company has filed the listing application with the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited on October 12,2007.

The Confirmation of Allocation Note ('CAN'), Refund Orders and ECS/RTGS/NEFT/Direct Credit Intimation and notices (where applicable) have been dispatched to the address of the Investors as registered with the depositories. In case the same is not received within ten (10) days, Investors may contact the Registrar to the Issue 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 the successful applicants have been credited to their respective beneficiary accounts 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 ('BSE') and National Stock Exchange of India Limited ('NSE') within seven (7) working days from the date of approval of the Basis of Allocation.

INVESTORS PLEASE NOTE
These details of the allotment made have been hosted on the website of the Registrars to the Issue, Cameo Corporate Services Limited at www.cameoindia.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-Appllcation 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:

CAMEO CORPORATE SERVICES LIMITED
Unit: Dhanus Technologies Limited
'Subramanian Buildings', No. 1, Club House Road, Chennai 600002
Tel:+91-44-28460390,28461989,28460014,28461173
Fax:+91-44-28460129, E-mail: dhanus@cameoindia.com
Contact Person: Mr. R.D. Ramasamy

This is to inform all Investors that it has been brought to the knowledge of the Company that a regular case has been registered by the Central Bureau of Investigation ('CBI') on August 23,2007 against the Company and unknown public servants in crime number RC MAI 2007 A 0042 of CBI, ACB, Chennai u/s 120-B r/w u/s 120-B IPC r/w 20 r/w Sec 4 of Indian Telegraph Act, 1885 and Sec 13(2) r/w 13(1)(d) of PC Act, 1988 regarding criminal conspiracy and illegal marketing of telegraph products and abuse of official position, based on a complaint from Divisional Engineer Telecom (Vigilance & Telecom Monitoring).

The Company wishes to clarify that It was not aware of the above case registered against it, as no Summons or Notice or copy of the said case/crime number has been received by the Company. The Company is taking appropriate steps to clarify to the authorities that it has obtained a 'No Objection Certificate' (NOC) vide letter no. 808-37/2007-CS dated 19.9.2007 from the Department of Telecommunications, Government of India, for sale of International Calling Cards in India which is subject to certain conditions mentioned in the said letter. The conditions specified in the NOC from DOT, as applicable, are being satisfied by the Company.

Place : Chennai
Date : October 12,2007

For Dhanus Technologies Limited
Sd/-
Executive Chairman

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF DHANUS TECHNOLOGIES LIMITED.

Dhanus Technologies IPO Basis of Allotment FAQs

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

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

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