GSS America Infotech IPO Basis of Allotment

GSS AMERICA INFOTECH LIMITED

[Our Company was incorporated under the Companies Act, 1956 as a private limited company with the name Mayes Technologies Private Limited on October 13, 2003 in Hyderabad, Andhra Pradesh vide Registration No. 41860. The name of our company was changed to 'GSS America Infotech Private Limited' on June 15, 2006. Our Company was converted into a public limited company vide a Special Resolution passed on June 21, 2006 and the name was changed to 'GSS America Infotech Limited'. The Registrar of Companies, Hyderabad, Andhra Pradesh, subsequently issued a fresh certificate of incorporation dated July 7, 2006.]

Registered Office: Wing-2, 3rd Floor, Block B, Cyber Gateway, Hitech City, Madhapur, Hyderabad - 500081. Andhra Pradesh, India. Tel. No. +91 40 4002 8700/1/2; Fax No. +91 40 4002 8703
Contact Person: Mr. Kamal Kishore Avutapalli, Company Secretary and Compliance Officer,
E-mail: kishore.avutapalli@gssamerica.com; Website: www.gssamerica.com
(We shifted our Registered office from Plot No. 189, Road No. 72, Prashasan Nagar, Jubilee Hills, Hyderabad -
500 033 w.e.f. February 6, 2007 to its present Registered Office)

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 34,97,495 EQUITY SHARES OF RS. 10 EACH ('EQUITY SHARES') FOR CASH AT A PRICE OF RS.400/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 390/- PER EQUITY SHARE) AGGREGATING TO RS.13989.98 LAKHS (THE 'ISSUE'). THE ISSUE COMPRISES OF 1,57,495 EQUITY SHARES WITH FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 400/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 390/- PER EQUITY SHARE) AGGREGATING TO RS. 629.98 LAKHS RESERVED FOR ELIGIBLE EMPLOYEES OF THE COMPANY ('EMPLOYEE RESERVATION PORTION'). THE NET ISSUE TO THE PUBLIC SHALL BE 33,40,000 EQUITY SHARES OF RS.10 EACH FOR CASH AT A PRICE OF RS.400/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 390/- PER EQUITY SHARE) FOR CASH AGGREGATING TO RS.13360 LAKHS (THE 'NET ISSUE') THE NET ISSUE SHALL CONSTITUTE 25.11 % OF THE POST ISSUE PAID -UP CAPITAL OF OUR COMPANY.

THE FACE VALUE PER EQUITY SHARE IS RS. 10/-. THE ISSUE PRICE OF THE EQUITY SHARES IS RS. 400/- PER EQUITY SHARE WHICH IS 40 TIMES THE FACE VALUE OF THE EQUITY SHARES.

The Issue was made through the 100% Book Building Process wherein atleast 50% of the Net Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs) 5% of the QIB Portion shall be available for allocation to Mutual Funds only and the remaining QIB Portion shall be available for allocation to QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 50% of the Net Issue to the Public cannot be allotted to QIBs, then the entire application money will be refunded. Further, not less than 15% of the Net Issue was to be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue was to 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, 1,57,495 equity shares were available for allocation on a proportionate basis to Eligible Employees, subject to valid Bids being received at or above the Issue Price.

The Issue opened for subscription on February 11, 2008 and closed on February 15, 2008. The Issue received 4,380 applications for 36,84,425 Equity Shares resulting in 1.0534 times subscription. The details of the applications received in the Issue from QIBs, Non-Institutional Bidders, Retail Individual Bidders and Eligible Employee categories are as under: (Before Technical & Multiple Rejections)

PUBLIC ISSUE

Final Demand
Final demand at different bid prices is as under:

The Basis of Allocation was finalised in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited ('BSE') on February 26, 2008.

A) Allocation to Eligible Employees (After Technical Rejections)
The Basis of Allocation to the Eligible Employees, who bid at the cut-off price or at the issue Price of Rs.400 per Equity Share, was finalized in consultation with the BSE. The Company received 41 valid applications for 3,195 Equity Shares as against a Employee Reservation portion of 1,57,495 Equity Shares resulting in 0.0202 times subscription. The category wise details of the Basis of Allocation are given below:

B) Allocation to Retail Investors (After Technical Rejections)

The Basis of Allocation to the Retail Individual Bidders, who bid at the cut-off price or at the Issue Price of Rs. 400 per Equity Share, was finalized in consultation with the BSE. The Company received 4,188 valid applications for 1,58,865 Equity Shares in this category resulting in 0.1298 times subscription. The total number of Equity Shares allotted in this category 1,58,865. The category wise details of the Basis of Allocation are given below.

C) Allocation to Non Institutional Bidders (After Technical Rejections)

The Basis of Allocation to the Non Institutional Bidders, who bid at the Issue Price of Rs. 400 per Equity Share, was finalized in consultation with the BSE. The Company received 20 valid applications for 17,43,300 Equity Shares in this category resulting in 3.3259 times subscription. The total number of Equity Shares allotted in this category is 15,60,455. Since the Retail Category have been undersubscribed, the spill over portion of 10,36,310 shares from Retail Category has been added to this category. The category wise details of the Basis of Allocation are given below:

D) Allocation to QIBs

This category was over-subscribed 1.0159 times and the Company received 3 applications for 17,74,980 equity shares. Mutual Funds were initially allocated 5% of the quantum of equity shares available i.e. 87,358 Equity Shares and no applications were received from Mutual Funds. The spill over portion of 87,356 Equity Shares has been added back to all other QIBs. Since the Retail Category was undersubscribed, the spill over portion (to the extent of oversubscription in QIB category) i.e. 27,830 equity shares has been added to this category and 17,74,980 equity shares have been allotted under the QIB Category on a firm basis. The Category-wise details are as follows:

The Board of Directors, at its Meeting held In Hyderabad, on February 27, 2008, approved the Basis of Allocation of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants.

The CAN-cum-Refund Orders / allotment advice in respect of refunds due to applicants have been dispatched to the addresses of the investors as registered with the depositories by February 28, 2008. In case the same are not received within ten 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 shares allocated to the successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned by February 28, 2008. The listing applications have been filed with BSE and NSE on February 28, 2008. The Company is taking steps to get the Equity Shares admitted for trading on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited within seven working days from the date of approval of Basis of Allocation.

These details of the allocation will also be available on the website ot the Registrar to the Issue, Bigshare Services Private Limited, at http:// www.bigshareonline.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting the full name of the First/Sole applicants, 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:

BIGSHARE SERVICES PRIVATE LIMITED
E-2,Ansa Industrial Estate, Saki Vihar Road, Sakinaka,
Andheri[E], Mumbai - 400 072
Phone: (91-22) 2847 3747; Fax: (91-22) 2847 5207
Email: ipo.gssamerica@bigshareonline.com
Website: www.bigshareonline.com

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 GSS AMERICA INFOTECH LIMITED.