Gremach IPO Basis of Allotment

GREMACH INFRASTRUCTURE EQUIPMENTS & PROJECTS LIMITED

(Originally Incorporated as a Private Limited Company at Kolkata, West Bengal on June 12,1991 as 'Gremach Commerce Private Limited' under the CompaniesAct, 1956, converted into a Public Limited under the name of Gremach Commerce Limited on January 12, 1996 and subsequently renamed as Gremach Infrastructure Equipments & Projects Limited effective from August 9, 2005)
Registered Office: P-50, Princep Street, Deo Bhawan, 3rd Floor, Kolkata-700 017
Tel: 91-33-6413 8452, 91-33- 2236 1246 Fax : 91-33-2212 9661
Corporate Office: Upvan Building, 1st Floor, Behind Indian Oil Nagar, D.N. Nagar, Andheri (W), Mumbai-400053,
Tel: 91-22-26303451/ 52/ 70/ 71, Fax: 91-22- 26303493
Contact Person: Mr. Sanjive Arora, Compliance Officer & Company Secretary.
Website: www.gremach.com E-mail: ipo@gremach.com

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 68,60,466 EQUITY SHARES OF RS. 10/- EACH AT A PRICE OF RS. 86/- FOR CASH AGGREGATING TO RS. 5900 LACS (HEREINAFTER REFERRED TO AS THE ISSUE) INCLUDING RESERVATfONS FOR EMPLOYEES FOR 6,86,046 EQUITY SHARES OF Rs. 10/- EACH AT A PRICE OF RS. 86/- EACH AGGREGATING TO RS. 590 LACS AND THE NET ISSUE TO THE PUBLIC OF 61,74,420 EQUITY SHARES Of Rs. 10/- EACH AT A PRICE OF RS. 86/- EACH AGGREGATING TO RS. 5310 LACS. THE ISSUE WOULD CONSTITUTE 45.08% OF THE FULLY DILUTED POST ISSUE PAID UP EQUITY CAPITAL OF THE COMPANY

The issue was made through 100% Book Building Process wherein upto 50% of the Net Issue was available for allocation on a proportionate basis to Qualified Institutional Buyers, out of which 5% was available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB portion was available for allocation on proportionate basis to all Qualified institutional Buyers, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, minimum of 15% of the Net Issue was available for allocation on a proportionate basis to Non-institutional Bidders and minimum of 35% of the Net issue was 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 2962 bids/applications for 70,52,850 equity shares resulting in 1.028 times subscription. The details of the bids/applications received in the Issue from Retail Bidders, Non- Institutional Bidders, Qualified Institutional Buyers and Eligible Employees 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 Allotment was finalized in consultation with the Bombay Stock Exchange Limited (BSE) on Monday, April 2, 2007.

A) Allocation to Retail Investors
The Basis of Allocation to Use Retail Investors, who have bid at cut-off or at and above the Issue price of Rs.86/- Equity Share, was finalized in consultation with BSE. The category was subscribed 0.5359 times (considering valid applications only). The total number of equity shares allotted in this category is 11,58,010 Equity Shares. The Unsubscribed portion of 10,03,037 equity Shares was added to Non-Institutional Category. The Category-wise details of the Basis of Allocation are as under:

B) Allocation to Non-Institutional Investors
The Basis of Allocation to the Non-Institutional Investors, who have bid at cut-of or at the Issue Price of Rs.86/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 4.9235 times (1.0241 times after adding Spill over from other categories) (considering valid applications only). The total number of equity shares allotted in this category is 44,52,396 Equity Shares, which includes Original Offer of 9,26,163 Equity Shares, Spill Over from Employee, Retail & QIB Category of 6,86,046,10,03,037 & 18,37,150 equity shares respectively. A sample of category-wise details of the Basis of Allocation are as under:

C) Allocation to QIBs
The category was subscribed 0.4049 times (considering valid applications only). The total number of equity shares allotted in this category is 12,50,060 Equity Shares

D) Allocation to Employees
No application was received under this category. The Unsubscribed portion of 6,86,046 equity shares was added to Non-Institutional Category.

The Board of Directors of the Company at its Meeting held in Mumbai on Monday, April 2,2007 has approved the Basis of Allocation and has allotted the equity shares to the successful bidders/applicants. The CAN-cum-Refund Orders have been dispatched on Tuesday, April 3, 2007 to the address of the investors as registered with the depositories. In case the same is not received within 10 (ten) days. Investors may contact at the address given below. The Refund Orders have been printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants have been credited to their respective beneficiary accounts subject to validation of the account details with the depositories concerned. Gremach Infrastructure Equipment & Projects Limited is taking steps to get the Equity Shares admitted for trading on Bombay Stock Exchange Limited within seven working days from the date of approval of the Basis of Allocation.

INVESTORS MAY PLEASE NOTE
These details of the allocation / allotment made are being hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.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:

INTIME SPECTRUM REGISTRY LIMITED
Unit: Gremach Infrastructure Equipments & Projects Limited
C-13, PannaSal Silk Mills Compound, LBS Marg. Bhandup (W), Mumbai -400 078
Tel: 91 22 2596 0320, Fax: 91 22 2596 0329, Contact: Person: Mr. Vishwas Attavar
E-mail: gremachinfra@intimespectrum.com; Website: wvw.intimespectrum.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OFTHE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF GREMACH INFRASTRUCTURE EQUIPMENTS & PROJECTS LIMITED.