Microsec Financial IPO Basis of Allotment

(This Is only an advertisement for Information purposes and not a prospectus announcement. Not for distribution In United States)

MICROSEC FINANCIAL SERVICES LIMITED

(The Company was incorporated as 'Satyam Fiscal Services Private Limited' on June 6,1989 as a private limited company under the Companies Act, 1956 and the name was changed to 'Microsec Financial Services Limited' with effect from October 21,2005. For details of changes in our name and our registered office, see 'History and Certain Corporate Matters' on page 82 of the Prospectus.

Registered Office: Shivam Chambers, 1 st floor, 53 Syed Amir Ali Avenue, Kolkata - 700 019.
Tel: (9133) 30512100; Fax: (91 33) 30512020.
Corporate Office: Azimganj House, 2nd floor, 7 Camac Street, Kolkata 700 017.
Contact Person: Biplab Kumar Mani, Company Secretary and Compliance Officer
Tel: (9133) 2282 9330; Fax: (9133) 2282 9335; Email: info@microsec.in;
Website: www.microsec.in

PUBLIC ISSUE OF 12,500,000 EQUITY SHARES OF RS. 10 EACH OF MICROSEC FINANCIAL SERVICES LIMITED (THE 'COMPANY' OR THE 'ISSUER' OR 'MFSL') FOR CASH AT A PRICE OF RS.118 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS.108 PER EQUITY SHARE) AGGREGATING TO RS.1,475 MILLION (THE 'ISSUE'). THE ISSUE PRICE IS 11.8 TIMES THE FACE VALUE OF THE EQUTY SHARES OF THE COMPANY. THE ISSUE CONSTITUTES 39.30% OF THE POST ISSUE PAID UP CAPITAL OF THE COMPANY.

PROMOTERS OF THE COMPANY: BANWARILAL MITTAL AND RAVI KANT SHARMA

This Issue was made through the 100% Book Building Process wherein not more than 50% of the Issue was available for allocation on a proportionate basis to Qualified Institutional Buyers ('QIBs'). 5% of the QIB Portion (excluding Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only, and the remainder 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. Further, not less than 15% of the Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% 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 had considered participation by Anchor Investors. The Anchor Investor Bid / Issue Period was scheduled to be one working day prior to Bid/ Issue opening date. However, no allotment has been made to Anchor Investors in the Issue.

BASIS OF ALLOTMENT

The Issue opened for subscription on September 17,2010 and closed on September 21,2010. The Company received in-principle approvals for the Issue from Bombay Stock Exchange Limited ('BSE') and the National Stock Exchange of India Limited ('NSE' and together with the BSE, the 'Stock Exchanges') on April 27,2010 and May 25,2010 respectively. Pursuant to the book building activity, the issue is priced at Rs. 118 per Equity Share. The total number of applications received was 86,686 (including 12,275 ASBA Applications) for 149,895,096 Equity Shares which constitutes 11.99 times of the Issue size in terms of the number of Equity Shares offered for subscription under the Issue. The Basis of Allotment was finalized on September 29,2010, in consultation with the BSE, the Designated Stock Exchange.

The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investor categories (including ASBA applications) are as under: (before technical rejections) -

Final Demand
A summary of the final demand as per BSE and NSE as on the Bid/Issue Closing date at different bid prices is as detailed below:

Allocation to Retail Individual Investors including ASBA Application (after technical rejections)

The Basis of Allocation to the Retail Individual Investors, who have bid at cut off and the Issue Price of Rs. 118/- per Equity Share, has been finalized on proportionate basis, in consultation with BSE. The category was over subscribed 10.52 times. The total number of equity shares allocated in this category is 4,375,000 Equity Shares which were allotted to 59,604 successful applicants.

The category-wise details of the Basis of Allocation are under:-

Allocation to Non Institutional Investors including ASBA Applications (after technical rejections)

The Basis of Allocation to the Non Institutional Investors, who have bid at the Issue Price of Rs. 118/- per Equity Share, has been finalized on proportionate basis, in consultation with BSE. The category was over subscribed 35.97 times. The total number of equity shares allocated to this category is 1,875,000 Equity Shares which were allotted to 92 successful applicants. The synopsis of the category-wise details of the Basis of Allocation is as under:

Allocation to QIBs includes ASBA Applications

Allocation to QIBs has been finalized on proportionate basis in consultation with BSE. As per the SEBI regulations, Mutual Funds are allocated 5% of the quantum of equity shares available (312,500 Equity Shares to 2 successful applicants) for QIB bidders and other QIBs (including Mutual Funds) were allocated the remaining available equity shares (5,937,500 Equity Shares to 29 successful applicants) on proportionate basis.

The IPO Committee of the Company at its meeting held on October 1,2010 has approved the Basis of Allocation of Equity Shares of the Issue and has alloted such shares to various successful applicants.

The CAN-cum-Refund Orders along with allotment advice and notices have been dispatched to the address of the bidders as registered with the depositories on October 1,2010. The instructions to Self Certified Syndicate Banks ('SCSBs') for unblocking and transfer of funds have been sent on October 1,2010. In case the same is not received, bidders may contact at the address given below. The equity shares allocated to successful applicants are credited to their beneficiary accounts on October 1,2010, subject to validation of the account details with the depositories concerned. The Company has filed its Listing application with Bombay Stock Exchange Limited (the 'Designated Stock Exchange') and the National Stock Exchange of India Limited and is taking steps to get the Equity Shares admitted for trading on these Exchanges within 12 working days from the date of closure of the Issue.

Investors to note that the details of the allocation made would be hosted on the website of Registrars to the Issue, Link Intime India Private Limited at http://www.linkintime.co.in

FOR RISK FACTORS AND OTHER DETAILS OF THE ISSUE, PLEASE REFER TO THE PROSPECTUS

All future correspondence may kindly be addressed to the Registrar to the Issue quoting full name of the First/Sole applicant, Serial No. 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 -

REGISTRAR TO THE ISSUE

Link Intime India Private Limited
C-13 Pannalal Silk Mills Compound, L.B.S Marg, Bhandup (West), Mumbai - 400 078
Tel: +91 22 2596 0320, Fax: +91 22 2596 0329

Email: mfsl.ipo@linkintime.co.in , Website: www.linkintime.co.in
Contact Person: Mr. Chetan Shinde, SEBI Registration Number: INR000004058

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 MICROSEC FINANCIAL SERVICES LIMITED

Note: All capitalized terms used and not defined herein shall  have the respective meaning assigned to them in the Prospectus dated September 24,2010 ('Prospectus') Microsec Financial Services Limited is proposing, subject to market conditions and other considerations, an initial public offer of its equity shares in India and has filed the Prospectus with the Registrar of Companies, West Bengal at Kolkata. The Prospectus will be available on the website of the Securities and Exchange Board of India ('SEBI') at www.sebi.gov.in and the website of the Book Running Lead Manager at www.sbicaps.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled 'Risk Factors' of the Prospectus. The information contained herein is not for publication and distribution in the United States of America. These materials are not an offer of securities for sale in the United States. The Equity Shares have not been and will not be registered under the U.S. Securities Act or any U.S. State Securities laws and may not be offered or sold within the United States except pursuant to an exemption from the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. State Securities laws. Accordingly, the Equity Shares are being offered and sold only outside the United States in compliance with Regulation S and the applicable laws of the jurisdictions where those offers and sales occur.