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Electrosteel IPO Details

Issue Open Sep 21, 2010
Issue Close Sep 24, 2010
IPO Price ₹11
Face Value ₹10
IPO Size ₹248.07 Cr
Listing At BSE, NSE
IPO Lot Size 600

ELECTROSTEEL STEELS LIMITED

(FORMERLY KNOWN AS ELECTROSTEEL INTEGRATED LIMITED)

Our Company was incorporated as "Electrosteel Integrated Limited" on December 20, 2006 as a public limited company under the Companies Act, 1956. The name of our Company was changed to "Electrosteel Steels Limited" on May 5,2010. For further details, please refer to the section titled "History and Certain Corporate Matters" on page 128 of the Prospectus.

Registered Office: 801, Uma Shanti Apartments, Kanke Road, Ranchi -834 008, Jharkhand, India
Tel: +91 651 2231636; Fax: +91 651 2231636 Corporate Office: G.K. Tower, 19 Camac Street, Kolkata 700 017,
West Bengal, India.
Contact Person: Mr. Vikram Saraogi, Company Secretary and Compliance Officer; Tel No: +91 33 2283 9990;
Fax: +91 33 22902882/ +91 33 22894339 Email: eil.investrs@electrosteel.com;
Website: http://www.electrosteel.com/steels/index.htm

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 225,516,188 EQUITY SHARES OF RS.10 EACH OF ELECTROSTEEL STEELS LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF Rs. 11 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Re. 1 PER EQUITY SHARE) AGGREGATING TO Rs. 2,480.67 MILLION (THE "ISSUE"). THERE WILL ALSO BE A GREEN SHOE OPTION OF UP TO 33,827,428 EQUITY SHARES FOR CASH AT A PRICE OF RS. 11 PER EQUITY SHARE NOT EXCEEDING Rs. 372.10 MILLION (THE "GREEN SHOE OPTION"). THE ISSUE AND THE GREEN SHOE OPTION, IF EXERCISED IN FULL, WILL AGGREGATE TO 259,343,616 EQUITY SHARES AMOUNTING TO RS. 2,852.77 MILLION. THE ISSUE CONSTITUTES 11.08% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY ASSUMING THAT THE GREEN SHOE OPTION IS NOT EXERCISED AND 12.54% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY ASSUMING THAT THE GREEN SHOE OPTION IS EXERCISED IN FULL.

THE FACE VALUE PER EQUITY SHARE IS RS. 10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 11 (INCLUDING A SHARE PREMIUM OF RE. 1 PER EQUITY SHARE) AND IT IS 1.1 TIMES THE FACE VALUE.

PROMOTER OF THE COMPANY: ELECTROSTEEL CASTINGS LIMITED

BID/ISSUE: OPENED ON SEPTEMBER 21,2010. CLOSED ON SEPTEMBER 23,2010 (FOR QIB BIDDERS) & ON SEPTEMBER 24,2010 (EXCEPT FOR QIB BIDDERS)

Pursuant to Rule 19(2)(b) of the Securities Contract Regulation Rules, 1957 ("SCRR"), this being an Issue for less than 25% of the post Issue share capital, the Issue was being made through the 100% Book Building Process wherein at least 60% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers ("QIB Portion'). 5% of the QIB 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 including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. Further, not less than 10% of the Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received from them at or above the Issue Price.

The Issue received 92558 applications for 1823446800 Equity Shares resulting in 7.03 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investors, categories are as under: (Before technical rejections) (including ASBA applications).

Category No. of Applications No. of Equity Shares No. of times subscription
A Retail Individual Bidders 92255 413625600 5.32
B Non Institutional Bidders 261 617142600 23.80
C Qualified Institutional Bidders 42 792678600 5.09
Total 92558 1823446800 7.03

Final Demand

The final demand at different bid prices as per the BSE and NSE as on the Bid/Issue closing date is as under:

Bid Price No. of Equity Shares % to total Cumulative Total Cumulative % to Total
10 150586800 7.633 150586800 7.633
11 1443549000 73.170 1594135800 80.803
CutoffPrice 378722400 19.197 1972858200 100.000

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ("BSE") on October 4,2010

A. 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. 11 per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 5.23 times. The total number of Equity Shares allotted in Retail Individual Investor category (including Green Shoe) is 77803084 Equity Shares to 60692 successful applicants. The category-wise details of the Basis of Allotment are as under:

Category No. of
Applns.
% to
total
Total No. of
Equity Shares
applied
% to
total
No. of
Equity Shares
allocated
Ratio Total No. of
Equity Shares
allocated
600 22811 25.38 13686600 3.36 600 9:47 2620800
1200 11872 1321 14246400 3:50 600 13:34 2723400
1800 5690 6.33 10242000 2.52 600 19:33 1965600
2400 3639 4.05 8733600 2.15 600 36:47 1672200
3000 3411 3.79 10233000 2.52 600 21:22 1953600
3600 1201 1.34 4323600 1.06 688 1:1 826288
1 43:47 1100
4200 2539 2.82 10663800 2.62 803 1:1 2038817
4800 1692 1.88 8121600 2.00 918 1:1 1553256
5400 506 0.56 2732400 0.67 1033 1:1 522698
6000 1285 1.43 7710000 1.90 1147 1:1 1473895
6600 195 0.22 1287000 0.32 1262 1:1 246090
7200 196 0.22 1411200 0.35 1377 1:1 269892
7800 121 0.13 943800 0.23 1492 1:1 180532
8400 149 0.17 1251600 0.31 1606 1:1 239294
9000 34582 38.47 311238000 76.50 1721 1:1 59515622

B.Allocation to Non institutional investors (After Technical Rejections)(including ASBA Applications)

The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs. 11 per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 23.76 times. The total number of Equity Shares allotted in this category (Including Green Shoe) is 25934362 Equity Shares to 235 successful applicants. The sample of category-wise details of the Basis of Allotment are as under:

Category No. of
Applns.
% to
total
Total No. of
Equity Shares
applied
% to
total
No. of
Equity Shares
allocated
Ratio Total No. of
Equity Shares
allocated
9600 10 4.13 96000 0.02 600 7:10 4200
10200 7 2.89 71400 0.01 600 5:7 3000
10800 3 1.24 32400 0.01 600 2:3 1200
11400 1 0.41 11400 0.00 600 1:1 600
12000 3 1.24 36000 0.01 600 2:3 1200
12600 1 0.41 12600 0.00 600 1:1 600
30000 3 1.24 90000 0.01 1263 1:1 3789
90000 5 2.07 450000 0.07 3788 1:1 18940
180000 3 1.24 540000 0.09 7575 1:1 22725
300000 2 0.83 600000 0.10 12626 1:1 25252
450000 1 0.41 450000 0.07 18939 1:1 18939
510000 1 0.41 510000 0.08 21464 1:1 21464
1000200 1 0.41 1000200 0.16 42094 1:1 42094
3000000 1 0.41 3000000 0.49 126257 1:1 126257
63636000 1 0.41 63636000 10.33 2678202 1:1 2678202

C. Allocation to QIBs (lncluding ASBA appllcations)
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI regulations, Mutual Funds were initially allocated 5% of the quantum of Equity Shares available (7780309 Equity Shares), including and other QIBs and Mutual Funds were allocated (147825861 Equity Shares) on proportionate basis.

Category Fls/Banks Flls MFs ICs PFC/VCs Total
No.of Equity Shares allocated 16730311 64062494 48591479 25109680 1112206 155606170

The Shares Allotment Committee of the Company at its Meeting held at Kolkata on October 5,2010 has taken on record the basis of allocation of Equity Shares approved by the Designated Stock Exchange viz., Bombay Stock Exchange Limited and has authorized the corporate action for the transfer of 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 on October 6,2010. Further, the instruction to Self Certified Syndicate Banks (SCSBs) has been dispatched on October 5,2010. 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.
Commencement of Trading: The Equity Shares allocated to successful applicants have been credited on October 6,2010 to their 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 and National Stock Exchange of India Limited on October 8,2010.

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 Website: 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 Equity 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

Plot No.17 to 24, Vithalrao Nagar, Madhapur, Hyderabad-500081, AndhraPradesh, India
Tel: + 91 40 2342 0815-28, Fax: + 91 40 2342 0814, E-mail: electro.ipo@karvy.com; Website:http://karisma.karvy.com Contact Person: Mr. M. Murali Krishna, SEBI Registration Number: INR 000000221

Toll Free: 1800 3454 001

Place: Kolkata
Date : October 7,2010
For Electrosteel Steels Limited
Sd/
Mr.Vikram Saraogi
Company Secretary and Compliance Officer

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 ELECTROSTEEL STEELS LIMITED

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated September 29,2010.

Electrosteel Steels Limited, is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offer of its equity shares and has filed the Prospectus with the Registrar of Companies, Bihar & Jharkhand at Patna. The Prospectus is available on the website the Book Running Lead Managers at www.edelcap.com; www.enam.com; www.sbicaps.com and is also available on the website of SEBI at www.sebi.gov.in. Any potential Investor should note that investment in equity shares involves a high degree of risk and for details relating to the same, should refer to the Prospectus, filed with the Registrar of Companies including the section titled "Risk Factors" on page 1 of the Prospectus. This advertisement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the feet of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. The information contained herein is not tor publication or distribution in or into the United States of America. These materials are not an offer of securities for sale in the United States. The Equity Shares have not been and will not be registered under the US Securities Act of 1933, as amended ("the Securities Act") or any state securities laws in the United States and may not be offered or sold within the United States except pursuant to an exemption from or in a transaction not subject to, registration requirements of the Securities Act. There will be no public offering of the securities in the United States.

Electrosteel IPO Basis of Allotment FAQs

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

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

Visit the Electrosteel 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 Electrosteel IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).