Indiabulls Power IPO Basis of Allotment

INDIABULLS POWER LIMITED.

(The Company was originally Incorporated as Sophia Power Company Limited on October 8,2007, as a public limited company under the Companies Act, 1956. The Company's name was changed to Indiabulls Power Limited, pursuant to a special resolution dated July 4,2009. A fresh certificate of incorporation consequent upon the name change was granted to the Company on July 7,2009.)
Registered Office: E-29, First Floor, Connaught Place, New Delhi -110001. Tel: (91 11) 3047 6300;
Fax: (91 11) 3047 6317
Corporate Office: "Indiabulls House', 448-451, Udyog Vihar, Phase-V, Gurgaon - 122 001.
Contact Person: Mr. Gaurav Toshkhani; Tel No.: (0124) 308 1338; Fax: (0124) 308 1084;
Email: poweripo@indiabulls.com; Website: www.indiabulls.com/power

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 339,800,000 EQUITY SHARES OF RS.10 EACH OF INDIABULLS POWER LIMITED. ("IPL" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS.45 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 35 PER EQUITY SHARE) AGGREGATING TO RS.15,291 MILLION (THE "ISSUE"). THERE WILL ALSO BE A GREEN SHOE OPTION OF UP TO 50,900,000 EQUITY SHARES FOR CASH AT A PRICE OF RS.45 PER EQUITY SHARE AGGREGATING TO RS. 2,290.50 MILLION (THE "GREEN SHOE OPTION"). THE ISSUE AND THE GREEN SHOE OPTION, IF EXERCISED IN FULL, WILL AGGREGATE TO 390,700,000 EQUITY SHARES AMOUNTING TO RS. 17,581.50. THE ISSUE WILL CONSTITUTE 16.98% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY ASSUMING THAT THE GREEN SHOE OPTION IS NOT EXERCISED AND 19.04% ASSUMING THAT THE GREEN SHOE OPTION IS EXERCISED IN FULL.

THE FACE VALUE PER EQUITY SHARE IS RS.10 EACH. THE ISSUE PRICE PER EQUITY SHARE IS RS.45 OR 4.5 TIMES THE FACE VALUE.

In terms of Rule 19(2)(b) of the Securities Contracts Regulations Rules, 1957 ("SCRR"), this being an Issue for less than 25% of the post-Issue capital, the Issue was made through the 100% Book Building Process wherein at least 60% of the Issue was to be allocated on a proportionate basis to QIB Bidders ("QIB Portion"). The Company had allocated 61,164,000 Equity Shares or 30% of the QIB Portion to Anchor Investors on a discretionary basis. ("Anchor Investor Portion"). Further 5% of the QIB Portion (excluding Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB Portion was available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. If at least 60% of the Issue could not have been allocated to QIBs, then the entire application money would have been refunded forthwith. Further, not less than 10% of the Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Issue was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.
The Company in consultation with the Book Running Lead Manager over allocated 50,900,000 shares pursuant to the Greenshoe option. The Issue received 115,507 applications for 6,159,338,999 equity shares resulting in 15.76 times subscription including over allocation pursuant to Greenshoe option. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders and Retail Individual Bidders are as under: (Before technical rejections)

Final Demand
A summary of the final demand as per the BSE and the NSE as on the Bid/ Issue Closing Date at different bids is as detailed hereunder:

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ("BSE") on October 26, 2009.

A. Allocation to Retail Individual Investors (Including Applications Supported by Blocked Amount ("ASBA")) (After Technical Rejections)
The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs. 45 per Equity Share, was finalized in consultation with BSE. This category has been over-subscribed to the extent of 0.86 times. 18,702 applications for 13,691,100 Equity Shares were made under the ASBA process. 18,533 applications for 13,584,300 Equity Shares were found valid and they were considered for allotment. The total number of Equity Shares allotted in Retail Individual Bidders category is 101,039,850 Equity Shares to 112,434 applicants.
Full and firm allotment was made to all valid applicants in this category.

B. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at cut-off or at the Issue Price of Rs. 45 per Equity Share, was finalized in consultation with BSE. This category has been over-subscribed to the extent of 4.51 times. 128 applications for 186,530,250 Equity Shares were found valid and they were considered for allotment. The total number of Equity Shares allotted in this category is 41,380,021 (including 2,310,021 Equity Shares being 1/7th of the unsubscribed portion of the Retail reservation) to 128 successful applicants. The category-wise details of the Basis of Allocation (sample) are as under:

C. Allocation to QIBs (excluding Anchor Investor Portion)
Allocation to QIBs has been done on a proportionate basis in consultation with BSE (including 13,860,129 equity shares being 6/7th of the unsubscribed portion of the Retail reservation were added to the QIB category.). In accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 Mutual Funds were initially allocated 5% of the QIB Portion (excluding Anchor Investor Portion) i.e. 9,355,806 Equity Shares. The balance QIB portion, being 177,760,323 Equity Shares, was allocated on a proportionate basis to all QIBs including Mutual Funds.

D. Anchor Investors
The Company allocated 61,164,000 Equity Shares to 8 Anchor Investors in consultation with the Book Running Lead Manager. This represents 30% of the QIB Portion.
The IPO Committee of the Board of Directors of the Company at its Meeting held on October 26, 2009 has approved the basis of allocation of Equity Shares of the Issue and has accordingly allotted the Equity Shares to the Bidders. The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on or prior to October 28, 2009. Further, the instructions to Self Certified Syndicate Banks have been dispatched on or prior to October 28,2009. In case the same is not received within 10 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. 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 Equtiy Shares have been admitted for trading on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited with effect from October 30, 2009.

All future correspondence in this regard may kindly be addressed to the Registrar 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, place where the bid was submitted and payment details at the address given below:

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF INDIABULLS POWER LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.