KSK Energy IPO Basis of Allotment

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KSK Energy Ventures Limited

(Incorporated as KSK Energy Ventures Private Limited on February 14,2001 under the Companies Act, 1956. Subsequently, pursuant to a special resolution on January 19,2008, the name was changed to KSK Energy Ventures Limited.)
Registered Office: 8-2-293/82/A/431/A, Road No.22, Jubilee Hills, Hyderabad 500 003
Website: www.ksk.co.in; Email: lnvestors@ksk.co.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 3,46,11,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS 240 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 230 PER EQUITY SHARE, AGGREGATING RS. 830.66 CRORES (THE "ISSUE") BY KSK ENERGY VENTURES LIMITED (THE "COMPANY OR "THE ISSUER"). THE ISSUE WOULD CONSTITUTE 10% OF POST ISSUE CAPITAL OF THE COMPANY.
THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 240/- AND IT IS 24 TIMES THE FACE VALUE.

The Issue made through the 100% Book Building Process wherein at least 60% of the net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was to specifically be allotted to mutual funds), 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 Bidders, subject to valid bids being received at or above the issue Price.
The Issue received 13,750 applications for 5,15,54,720 equity shares resulting in 1.48 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investor categories are as under: (Before technical rejections)

Final Demand
A sample of the final demand at different bid prices is as unders:

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited ("NSE") on 4th July, 2008.

A. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail category, who have bid at cut-off or at the Issue Price of Rs.240/- per Equity Share, was finalized in consultation with NSE. The category was subscribed to the extent of  0.190951 times. The spill over portion of 84,00,600 shares have added to Qualified institutional Investors category. The total number of shares allotted in this category is 19,82,700 Equity Shares to 13,452 successful applicants. The category-wise details of the Basis of Allocation are as under:

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.240/- per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 0.693797 times. The spill over portion of 10,59,800 equity shares have been added to Qualified Institutional Investors category. The total number of shares allotted in this category is 24,01,300 Equity Shares to 23 successful applicants. The category-wise details of the Basis of Allocation are as under:

C. Allocation to QIBs
Allocation to QIBs has been done on a full and firm basis in consultation with NSE. This category has been subscribed to the extent of 1.521903 times. Since the Retail and Non-Institutional Investors categories have not been fully subscribed, the spill over portion of 94,60,400 equity shares from both the categories have been added to this category. The issuer has not received any applications from Mutual Funds. The break up of allocation as under:

The IPO committee of the company at It's Meeting held at Hyderabad on 5th July, 2008 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices have been dispatched to the address of the investors as registered with the depositories. 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 Mandate details as registered, if any, with the depositories. The 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 Bombay Stock Exchange Limited and the National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

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 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
Unit: KSK Energy IPO
Plot no. 17 to 24, Vitharao Nagar, Hitech City Road, Madhapur
Hyderabad  - 500081, Fax: 040-23420814
_{Email: einward.ris@Karvy.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 KSK ENERGY VENTURES LIMITED.