Meghmani IPO Basis of Allotment

MEGHMANI ORGANICS LIMITED

(The company was formed as a partnership firm in the name and style of M/s Gujarat Industries. Subsequently the partnership firm was incorporated into a company at Ahmedabad in the state of Gujarat with the name 'Meghmani Organics Limited' on January 2,1995 under part IX of the Companies Act, 1956, with the Registration No. 04-24052)
Registered Office: Plot No. 184, Phase II, G.I.D.C. Vatva, Ahmedabad -382 445, Gujarat, India.
Corporate Office: Meghmani House, Shrinivas Society, Off New Vikas Gruh Road,
Paldi, Ahmedabad - 380 007, Gujarat, India.
Tel: + 91 79 25831210 Fax: +91 79 25833403.
Contact Person: Mr. Kamlesh Mehta;
E-mail: ipo@meghmani.com; Website: www.meghmani.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 53,684,211 EQUITY SHARES OF Re. 1/- EACH AT A PRICE OF RS. 19 PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 18 PER EQUITY SHARE) FOR CASH AGGREGATING RS. 1020 MILLION BY MEGHMANI ORGANICS LIMITED (HEREINAFTER REFERRED TO AS THE 'ISSUE'). THE ISSUE WILL CONSTITUTE 21.11% OF THE POST ISSUE PAID-UP EQUITY CAPITAL.
ISSUE PRICE: Rs. 19 PER EQUITY SHARE OF FACE VALUE Re. 1/-
THE ISSUE PRICE IS 19 TIMES OF THE FACE VALUE.
The issue was made in terms of Rule 19 (2) (b) of the SCRR, this being an Issue for less than 25% of the post - Issue paid up share capital of our Company, this Issue was being made through 100% Book Building Process wherein at least 60% of the Issue shall be allotted on a proportionate basis to Qualified Institutional Buyers ('QIBs'). 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. If at least 60% of the Issue cannot be allotted to QIBs, then the entire application money will be refunded. Further, up to 10% of the Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and up to 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price
The Bid/Issue opened on June 04, 2007 and Closed on June 07, 2007. The Issue received 168117 applications for 1409399950 equity shares resulting in 26.25 times subscription.
The Basis of Allotment for all the categories namely Retail Individual Investors, Non Institutional Investors and Qualified Institutional Buyers was approved by the National Stock Exchange of India Limited (Designated Stock Exchange) on June 19, 2007. The Board of Directors of the Company at its Meeting held at Ahmedabad, on June 20, 2007, allotted the Equity Shares to the successful applicants. Details of valid applications received and allotments done are as under:
Public Issue

336 excess equity shares have been allotted in Retail category due to rounding off.

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

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange - National Stock Exchange of India Limited ('NSE') on Tuesday June 19,2007.

A. Allotment to Retail Investors (After Technical Rejections)
All the bidders in the Retail Investors, who have bid at cut-off or at the Issue Price of Rs. 19/- per Equity Share, have been considered while preparing the basis of allotment. The category was over subscribed 28.27 times. The total number of shares allotted in this category is 16105600 Equity Shares. The category-wise details of the Basis of allotment are as under:

B. Allotment to Non Institutional Investors (After Technical Rejections)
All the bidders in the Non Institutional Investors, who have bid at the Issue Price of Rs. 19/- per Equity Share, have been considered while preparing the basis of allotment. The category was over subscribed 45.84 times. The total number of shares allotted in this category is 5368085 Equity Shares. The category-wise details of the Basis of allotment are as under: (Sample)

C. Allotment to QIBs
The total numbers of Equity Shares allotted in this category are 32210526 Equity Shares (60% of total Equity Shares allotted). Out of 32210526 Equity Shares offered to QIBs as per the terms of the Issue, 1610526 Equity Shares (i.e. 5% of 32210526 Equity Shares) has been allotted proportionately to mutual funds. Mutual funds applicants have also been considered eligible for proportionate allotment for the balance Equity shares in QIBs category i.e. 30600000. The category was over subscribed 21.72 times. The category-wise details of the Basis of allotment are as under:

Dates of despatch of Refund Orders, Credit to beneficiary Accounts, Refund Instructions and Listing details.

The Board of Directors of the Company at a meeting held at Ahmedabad on June 20, 2007 adopted the Basis of Allotment of Equity Shares in the Issue, approved by NSE and allotted 53684211 Equity Shares to the successful applicants.

Refunds have been made through ECS, Direct Credit, RTGS and NEFT into the Bank Account of the applicants, as registered with the depositories, for applicants residing at any of the 15 centers specified by SEBI. For other applicants Refund Orders have been dispatched to their address as registered with the depositories. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. ECS Intimation Note and Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allocated to the 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 National Stock Exchange of India Limited within seven working days from the date of approval of Basis of Allotment.

INVESTORS PLEASE NOTE
This details of the allotment made would be 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 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
C-13 Pannalal Silk Mills Compound, LBS Marg, Bhandup (W), Mumbai 400 078
Tel: +91 22 2596 0320 (9 Lines) Fax: +91 22 2596 0328/29
E-mail: meghrnani-ipo@intimespectrum.com, Website: www.intimespectrum.com
Contact Person: Mr. Sachin Achar

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 MEGHMANI ORGANICS LIMITED