Godha Cabcon Insulation IPO Basis of Allotment

GODHA CABCON & INSULATION LIMITED
Corporate Identity Number: U74999MH2003PLC141887

Our Company was incorporated as Godha Cabcon & Insulation Private Limited on October 04, 2016 under the provisions of the Companies Act, 2013 in the State of Madhya Pradesh. Subsequently, our Company was converted into a Public Limited Company and the name was changed to 'Godha Cabcon & Insulation Limited' vide fresh Certificate of Incorporation dated July 28, 2017 issued by the Registrar of Companies, Madhya Pradesh. The Corporate Identification Number of Our Company is U31909MP2016PLC041592

Registered Office: 36-D, Sector B, Sanwer Road, Industrial Area, Indore-452 006, Madhya Pradesh
Tele Fax: +91 731 4029 509 | E-mail: info@godhacabcon.com; | Website: www.godhacabcon.com
Contact Person: Ms. Surbhi Jain, Company Secretary and Compliance Officer

PUBLIC ISSUE OF 30,00,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH FULLY PAID UP OF GODHA CABCON & INSULATION LIMITED ('GODHA' OR 'GCIL' OR THE 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF RS 33 PER EQUITY SHARE (THE 'ISSUE PRICE') (INCLUDING SHARE PREMIUM OF RS 23 PER EQUITY SHARE) AGGREGATING TO RS 9,90,00,000 (THE 'ISSUE'). THE ISSUE COMPRISES OF 1,60,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH FOR CASH AT A PRICE OF RS 33 PER EQUITY SHARE, AGGREGATING TO RS 52,80,000 WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKER TO THE ISSUE ('MARKET MAKER RESERVATION PORTION'). THE ISSUE LESS THE MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 28,40,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH FOR CASH AT A PRICE OF RS 33 PER EQUITY SHARE, AGGREGATING UP TO RS 9,37,20,000 IS HEREINAFTER REFERRED TO AS THE 'NET ISSUE'. THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 27.03% AND 25.59% RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY.

As per Regulation 43(2) of the SEBI (ICDR) Regulations, as present offer is a book building offer laws or regulation the net Offer to the public category shall be made as follows:

a) Not less than thirty five per cent to retail individual investors; b) Not less than fifteen per cent to non-institutional investors; and c) Not more than fifty percent to qualified institutional buyers, five per cent of which shall be allocated to mutual funds:

Provided that in addition to five percent allocation available in terms of clause (c), mutual funds shall be eligible for allocation under the balance available for qualified institutional buyers. All investors (except Anchor Investors) shall participate in this Issue mandatorily through the Applications Supported by Blocked Amount ('ASBA') process by providing details of their respective bank accounts which will be blocked by SCSBs. For details, refer 'Issue Procedure' on page 190 of the Prospectus.

RISK TO INVESTORS:

1. The Book Running Lead Manager associated with the Issue have handled 2 public issues in the past three financial years out of which none of the public issues closed below the issue price on listing date.

2. The average cost of acquisition per equity share of our Promoter, Mrs. Madhu Godha, Mrs. Rupali Godha and Mr. Dipesh Godha are Rs 15.05, Rs 10.00 and Rs 29.58 respectively.

3. The Price / Earnings ratio based on basic EPS for Period Ended October 31, 2017 for the Company at the Floor Price of Rs 30 is 9.46 and Cap Price of Rs 33 per share is 10.41 as compared to the composite industry peer group P/E Ratio of 56.90.

The Equity Shares offered through Red Herring Prospectus are proposed to be listed on the NSE EMERGE. Our Company has received an in-principle approval letter dated February 19, 2018 from NSE for using its name in this offer document for listing of our Equity Shares on the NSE Emerge. For the purpose of this Issue, the Designated Stock Exchange will be the National Stock Exchange of India Ltd. ('NSE').

All Applicants participated in the Issue through Applications Supported By Blocked Amount ('ASBA') process by providing the details of their respective bank accounts in which the corresponding application amounts were blocked by Self Certified Syndicate Banks (the 'SCSBs').

SUBSCRIPTION DETAILS

The Issue has received 562 applications for 4,972,000 Equity Shares resulting in 1.657 times subscription (including reserved portion of Market Maker). The details of the applications received in the Issue (before technical rejections) are as follows:

Detail of the Applications Received (Before Technical Rejection):

The details of applications rejected by the Registrar on technical grounds / withdrawal are detailed below:

After eliminating Technically Rejected applications, the following table gives the details of Category wise net valid applications:

Note: The additional 2000 share each were allocated in the catagory of Non-Institution Investor and Retail Individual Investor for rounding off.

Allocation: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - NSE on May 10, 2018.

A. Allocation to Market Maker (After Technical Rejections): The Basis of Allotment to the Market Maker, at the issue price of Rs. 33 per Equity Share, was finalized in consultation with NSE. The category was subscribed by 1.00 times. The total number of shares allotted in this category is 160,000 Equity Shares.

B. Allocation to Retail Individual Investors (After Technical Rejections): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs. 33 per Equity Share, was finalized in consultation with NSE. The category was subscribed 1.98 times. The total number of shares allotted in this category is 996,000 Equity Shares to 249 successful applicants.

The category wise details of the Basis of Allotment are as under:

C. Allocation to Non Retail Investors (After Technical Rejections): The Basis of Allotment to the Non Retail Investors, at the issue price of 33 per Equity Share, was finalized in consultation with NSE. The category was subscribed 2.97 times. The total number of shares allotted in this category is 428,000 Equity Shares.

The Category-wise details of the Basis of Allotment are as under:

D. Allocation to QIB (Mutual Fund+Others) (After Technical Rejections): Nill

E. Allocation to Lead Manager's Underwriter Obligation (Alter Technical Rejections & Withdrawal): Unsubscribed portion of 14,20,000 Equity Shares under the category of QBI's brought-in by the Merchant Banker Underwriter's obligation at the price of Rs. 33/- per Equity Share. Book Running Lead Manager, Mark Corporate Advisors Private Limited have agreed to fulfil their underwriting obligation of 100.00% of the Issue Size on their own account and have accordingly subscribed for 14,20,000 Equity Shares. The Basis of Allotment for Lead Managers Underwriter Category at the issue price of Rs. 33/-per Equity Share, was finalized in consultation with NSE and 14,20,000 Equity Shares were allotted to Mark Corporate Advisors Private Limited.

The Category-wise details of the Basis of Allotment are as under:

The Board of Directors of the Company at its meeting held on May 10, 2018 has taken on record the Basis of Allocation of Equity Shares approved by the Designated Stock Exchange viz. NSE and has authorized the corporate action for the transfer of the Equity Shares to various successful applicants. The CAN and allotment advice and/or notices are being dispatched to the address of the Applicants as registered with the depositories on or before May 11, 2018. Further, the instructions to Self Certified Syndicate Banks are being processed on May 10, 2018. The Equity Shares allocated to successful applicants are being credited 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 SME Platform of NSE 'NSE EMERGE' within six working days from the date of the closure of the Issue. The trading is proposed to be commenced with effect from Friday, May 11, 2018*.
*Subject to receipt of listing and trading approvals from the NSE.

INVESTORS PLEASE NOTE

The details of the allotment made would also be hosted on the website of the Registrar to the Issue, KARVY COMPUTERSHARE PRIVATE LIMITED at www. karvycomputershare.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicants, serial number of the Application Form, number of shares applied for and Bank Branch where the application had been lodged and payment details at the address of the Registrar given below:

KARVY COMPUTERSHARE PRIVATE LIMITED
CIN: U72400TG2003PTC041636
Karvy Selenium Tower B, Plot 31 -32, Gachibowli, Financial District, Nanakramguda, Hyderabad-500 032.
Tel No.: +91 40 6716 2222 | Fax No.: +91 40 23431551 | E-Mail ID: einward.ris@karvy.com
Contact Person: Mr. M Murli Krishna | Investor Grievance E-Mail ID: godhacabcon.ipo@karvy.com
SEBI Regn No.: INR000000221