Parag Milk IPO Basis of Allotment

PARAG MILK FOODS LIMITED

Our Company was incorporated as Parag Milk & Milk Products Private Limited on December 29,1992 with the registrar of companies at Mumbai with our registered office at Pune as a private limited company under the Companies Act, 1956. The name of our Company was changed to Parag Milk Foods Private limited and a fresh certificate of incorporation consequent upon change of name was granted by the Registrar of Companies. Maharashtra at Pune ('RoC') on April 11,2008. Our Company was converted into a public limited company pursuant to approval of the shareholders at an extraordinary general meeting held on May 16,2015. Consequently, the name of our Company was changed to Parag Milk Foods Limited and a fresh certificate of incorporation consequent upon conversion to a public limited company was granted to our Company by the RoC on July 7,2015. For details of changes in the name and Registered Office of our Company, see 'History and Certain Corporate Matters' on page 162 of the prospectus dated May 13,2016 and filed with the RoC ('Prospectus').

Registered Office: Flat No, 1, Plot No. 19. Nav Rajasthan Society, S.B. Road, Shivaji Nagar, Pune 411 016; Corporate Office: 20th floor, Nirmal Building, Nariman Point, Mumbai 400 021, Contact Person: Rachana Sanganeria, Company Secretary and Compliance Officer; Tel: (91 22)4300 5555; Fax: (91 22) 4300 5580; Email: cs@paragmilkfoods.com ;Website: www.paragmilkfoods.com: Corporate Identity Number: U15204MH1992PLC070209.

BASIS OF ALLOTMENT

Our Company has fifed the Prospectus with the RoC and the Equity Shares are proposed to be listed on the BSE Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading will commence on May 19,2016.

PUBLIC ISSUE OF 34,271,268 EQUITY SHARES OF FACE VALUE OF RS.10 EACH (THE 'EQUITY SHARES') OF PARAG MILK FOODS LIMITED (OUR 'COMPANY' OR 'ISSUER') FOR CASH AT A PRICE OF RS.215* PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 205 PER EQUITY SHARE} AGGREGATING TO RS.7,505.37 MILLION CONSISTING OF A FRESH ISSUE OF13,698,695 EQUITY SHARES AGGREGATING UP TO RS.3,000 MILLION AND AN OFFER FOR SALE OF 20,572,573 EQUITY SHARES COMPRISING OF 14,286,449 EQUITY SHARES BY THE INVESTOR SELLING SHAREHOLDERS AND 6,286,124 EQUITY SHARES BY THE OTHER SELLING SHAREHOLDERS (AS DEFINED IN THE PROSPECTUS) (THE OFFER FOR SALE AND THE FRESH ISSUE ARE COLLECTIVELY REFERRED TO AS THE 'ISSUE'). THE ISSUE INCLUDES A RESERVATION OF 284,505 EQUITY SHARES (ORIGINAL RESERVATION OF 300,000 EQUITY SHARES) AGGREGATING TO RS.57.75 MILLION FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED IN THE PROSPECTUS) (THE 'EMPLOYEE RESERVATION PORTION'). THE ISSUE LESS EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE NET ISSUE. THE ISSUE AND THE NET ISSUE CONSTITUTE 40.74% AND 40.41%, RESPECTIVELY, OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

ISSUE PRICE: RS 215* PER EQUITY SHARE OF FACE VALUE OF RS 10 EACH
ANCHOR INVESTOR ISSUE PRICE; RS 227 PER EQUITY SHARE
THE ISSUE PRICE IS 21.5 TIMES THE FACE VALUE

*Discount of Rs 12 per Equity Share has been offered on the Issue Price to Eligible Employees and Retail Individual Bidders

Risks to Investors:

i. The four BRLMs associated with the Issue have handled 18 public issues in the past three years out of which 7 issues closed be low the issue price on listing date,
ii. Average cost of acquisition of Equity Shares for the Promoters of the Company is in the range of Rs 1.01 to Rs 1.90 and the average cost of acquisition for the selling shareholders is in the range of Rs 3.14 to Rs 109.75 and the Anchor Investor Issue Price is as high as Rs 227 and the Issue Price is as high as Rs 215* (for all Investors other than Anchor Investors)

*Discount of Rs 12 per Equity Share has been offered on the Issue Price to Eligible Employees and Retail individual Bidders.

BID/ ISSUE PERIOD: OPENED ON: WEDNESDAY, MAY 4, 2016;
CLOSED ON WEDNESDAY, MAY 11, 2016(1)
ANCHOR INVESTOR BID/ISSUE PERIOD: TUESDAY, MAY 3, 2016

(1) In accordence with regulations 46(2) of the SEBI Regulations, on account of revision of the price Band, the Bid/Issue Period was extended by three Working Days and the Bid/issue period consequently closed on May 11, 2016 instead of the earlier scheduled May 6,2016.

In terms of Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended ('SCRR') the Equity Shares issued In the Issue shall aggregate to at least such percentage of the post-Issue Equity Share capital of our Company (calculated at the Issue Price) that will be at least Rs. 4,000 million and the post-Issue capital of our Company at the Issue Price will be more than Rs. 16,000 million but less than or equel to Rs. 40,000 million. The Issue has been made through the Book Building Process, in compliance with Regulation 26(2) of the SEBI Regulations, wherein at least 75% of the Net Issue has been Allotted on a proportionate base toQualified Institutional Buyer('QIBs') (the 'QIB Portion'), of which our Company in consultation with the Investor Selling Shareholders and the BRLMs. allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. 5% of the QIB Portion {excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mulual Funds only, and the remainder of the QIB Portion was available for allocation on a proportionate basis to all QlB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not more than 15% of the Net Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Net Issue was available for allocation to Retail Individual Bidders in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the 'SEBI Regulations'), subject to valid bids being received at or above the Issue Price. Further. 300,000 Equity Shares were available for allocation on a, proportionate basis 10 Eligible Employees, subject to valid bids being received from them at or above Issue Price after the Employee Discount All potential investors, other than Anchor Investors, were required to mandatorily utilise the Application Supported by Blocked Amount ('ASBA') process by providing details of their respective bank accounl which will be blocked by the Self Certified Syndicate Banks ('SCSBs') ,to participate in this Issue. For details, see'Issue Procedure' on page 373 of the Prospectus.

The Issue received 82,611 applications for 51,068,355 Equity Shares (prior to technical rejections} resulting in 1.49 times subscription. The details of the applications received in the Issue from various categories are as under (before technical rejections):

SI. No.	Category	No. of Applications	No. of Equity Shares	No. of times Subscribed	Amount (in Rs)	Shares Reserved
A	Retail Individual Bidders.	82,043	6,929,780	2.04	1,493,271,290.00	3,397,126
B	Non Institutional Bidders	69	14,723,670	2.89	3,341,682,305.00	5,095,690
C	Eligible Employees	456	306,540	1.02	65,869,830.00	300,000
D	Qualified Institutional Buyers (Excluding Anchor Investors)	21	12,266,930	1.18	2,774,825,950.00	10,374,517
E	Anchor Investors	22	16,841,435	1.12	3,823,005,745.00	15,103,935
	Total	82,611	51,068,355	1.49	11,498,655,120.00	34,271,268

Final Demand
A summary of the final demand as at differed Bid prices is as under

SL. NO.	BID PRICE	BID QUANTITY	(%) TO TOTAL	Cumulative Total	% Cumulative Total
1	215	910,975	2.54	910,975	2.54
2	216	4,420	0.01	915,395	2.55
3	217	3,705	0.01	919,100	2.56
4	218	975	0.00	920,075	2.56
5	219	455	0,00	920,530	2.56
6	220	109,395	0.30	1,029,925	2.87
7	221	5,720	0.02	1,035,645	2.89
8	222	9,035	0.03	1,044,680	2.91
9	223	5,135	0.01	1.049,815	2.93
10	224	7,280	0.02	1,057,095	2.95
11	225	21,450	0.06	1,078,545	3.01
12	226	3,835	0.01	1,082,380	3.02
13	227	28,279,550)	78.80	29,361,930	81.81
14	CUTOFF	6,526,390	18.19	35,888,320	100.00
	TOTAL	35,888,320	100 00

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange, being the BSE on Tuesday. May 17, 2016.

A. Allotment to Retail Individual Bldders (After Technical Rejections)

The Basis of Allotment to the Retail Individual Bidders, who have bid at the Issue Price (less discount) of Rs 203 per Equity Share, was finalised in consultation with the BSE. This category has been subscribed to the extent of 2.013529 times (after including spillover from Eligible Employee category) The total number of Equity Shares Allotted in Relail Portion is 3,398,675 Equity Shares to 52,287 successful Retail Individual Bidder The category-wise details of the Basis of Allotment are as under

Category	No. of Valid Applications Received	% of Total	Total No. of Equity Shares Applied	% to Total	No. of Equity Shares Allotted per applicant	Ratio of allottees to applicants	Total No. of Equity Shares Allotted
65	74,727	92.15	4,857,255	70.98	65	266: 411	3,131,765
130	2,749	3.39	357,370	5.22	65	29:45	116,180
195	964	1.19	187,980	2 75	65	20:31	40,480
260	608	0.75	158,080	2.31	65	20:31	25,480
325	308	0.38	100,100	1.46	65	20:31	12,935
390	250	0.31	97,500	1.42	65	20:31	10,465
455	279	0.34	126,945	1.86	65	20:31	11,700
520	133	0.16	69,160	1.01	65	20:31	5,590
585	45	0.06	26,325	0.38	65	29:45	1,885
650	159	0.20	103,350	1.51	65	20:31	6,695
715	31	0.04	22,165	0.32	65	20:31	1,300
780	37	0.05	28,860	0.42	65	24:37	1,560
845	376	0.46	317,720	4.64	65	20:31	15,730
910	427	0 53	388,570	5.68	65	20:31	17,875
975	2	0.00	1,950	0.03	65	1:2	65
					1	10:2053	20
TOTAL	81,095	100	6,843,330	100.00			3,398,675

B. Allotment to Non-Institutional Bidder (After Technical Rejections)

The Basis of Allotment to the Non-institutional Bidders, who have bid at the Issue Price of Rs. 215 per Equity Share, was finalised in consultation with the BSE, The Non-institutional Portion has been subscribed to the extent of 2.887583 times (after ncluding spill over from Eligible Employee category). The total number of Equity Shares Allotted in this- category is 5,098,014 Equity Shares to 66 successful Non- Institutional Bidders. The category-wise details of the Basis of Allotment are as under.

Category	No. of Valid Applications Received	% of Total	Total No. of Equity Shares Applied	% to Total	No. of Equity Shares Allotted per applicant	Ratio of allottees to applicants	Total No. of Equity Shares Allotted
910	9	13.64	8,190	0.06	315	1:1	2,835
975	1	1.52	975	0,01	338	1:1	338
1,040	1	1.52	1,040	0.01	360	1:1	360
1,300	2	3.03	2,600	0.02	450	1:1	900
1,950	1	1.52	1,950	0.01	675	1:1	675
2,145	4	6.06	8,580	0.06	743	1:1	2,972
2,275	1	1.52	2,275	0.02	788	1:1	788
2,535	1	1.52	2,535	0.02	878	1:1	878
2,600	1	1.52	2,600	0.02	900	1:1	900
2,925	1	1.52	2,925	0.02	1,013	1:1	1,013
4,355	3	4.55	13,065	0.09	1,508	1:1	4,524
5,265	1	1.52	5,265	0.04	1,823	1:1	1,823
6,500	1	1.52	6,500	0.04	2,251	1:1	2,251
6,565	1	1.52	6,565	0.04	2,274	1:1	2,274
9,750	1	1.52	9,750	0.07	3,377	1:1	3,377
10,985	1	1.52	10,985	0.07	3,804	1:1	3,804
11,050	1	1.52	11,050	0.08	3,827	1:1	3,827
11,700	1	1.52	11,700	0.08	4,052	1:1	4,052
12,350	1	1.52	12,350	0.08	4,277	1:1	4,277
17,680	1	1.52	17,680	0.12	6,123	1:1	6,123
20,020	1	1.52	20,020	0.14	6,933	1:1	6,933
20,150	1	1.52	20,150	0.14	6,978	1:1	6,978
21,775	1	1.52	21,775	0.15	7,541	1:1	7,541
44,005	2	3.03	88,010	0.60	15,239	1:1	30,478
44,850	1	1.52	44,850	0.30	15,532	1:1	15,532
46,475	1	1.52	46,475	0.32	16,095	1:1	16,095
49,985	2	3.03	99,970	0.68	17,310	1:1	34,620
50,050	2	3.03	100,100	068	17,333	1:1	34,666
59,995	1	1.52	59,995	0.41	20,777	1:1	20,777
64,740	1	1.52	64,740	0.44	22,420	1:1	22,420
88,075	1	1.52	88,075	0.60	30,501	1:1	30,501
120,250	1	1.52	120,250	0.82	41,644	1:1	41,644
132,145	1	1.52	132,145	0.90	45,763	1:1	45,763
132,600	1	1.52	132,600	0.90	45,921	1:1	45,921
209,950	1	1.52	209,950	1.43	72,708	1:1	72,708
220,220	3	4.55	660,660	4.49	76,264	1:1	228,792
265,200	1	1.52	265,200	1.80	91,842	1:1	91,842
396,435	1	1.52	396,435	2.69	137,290	1:1	137,290
440,505	2	3.03	881,010	5.98	152,552	1:1	305,104
616,720	1	1.52	616,720	4.19	213,577	1:1	213,577
704,860	1	1.52	704,860	4.79	244,100	1:1	244,100
1,136,005	1	1.52	1,136,005	7.72	393,410	1:1	393,410
1,431,235	1	1.52	1,431,235	9.72	495,652	1:1	495,652
1.820,000	1	1.52	1,820,000	12 36	630,285	1:1	630,285
2,643,160	1	1.52	2,643,160	17.96	915,354	1:1	915,354
2,777,970	1	1.52	2,777,970	18.87	962,040	1:1	962,040
TOTAL	66	100.00	14,720,940	100.00		1:1	5,098,014

C. Allotment to Eligible Employees (After technical Rejections)

The Basis of Allotment to Eligible Employees, who have bid at the Issue Price (less discount) of Rs.203 per Equity Share was finalised in consultation with the BSE. The Employee Reservation Portion has been subscribed to the extent of 0.948350 times. The lotal number of Equity Shares Allotted in this category is 284,505 Equdy Shares to 401 successful Eligible Employees. The category-wise details of the Basis of Allotment are as under.

Category	No. of Valid Applications Received	% of Total	Total No. of Equity Shares Applied	% to Total	No. of Equity Shares Allotted per applicant	Ratio of allottees to applicants	Total No. of Equity Shares Allotted
65	60	14.96	3,900	1.37	65	1:1	3,900
130	18	4.49	2,340	0.82	130	1:1	2,340
195	5	1.25	975	0.34	195	1:1	975
260	9	2.24	2,340	0.82	260:	1:1	2,340
325	2	0.50	650	0.23	325	1:1	650
390	1	0.25	390	0.14	390	1:1	390
455	7	1.75	3,185	1.12	455	1:1	3,185
585	1	0.25	585	0.21	585	1:1	585
845	16	3.99	13,520	4.75	845	1:1	13,520
910	282	70.32	256,620	90 20	910	1:1	256,620
TOTAL	401	100.00	284,505	100.00			284,505

D. Allotment to QIBs (excluding Anchor Investor Portion)

Allotrnent to QIBs (excluding Anchor Investor Portion), who have Bid at the Issue Price of Rs 215 per Equity Share, has been done on a proportionate bass in consolation with the BSE This calegory has been subacribed to the extent of 1.185249 tines of QIB Portion. As per SEBI Regulations, 519,307 Equity Shares (inducting spillover from Eligible Employee category) constituting upto 5% of the QlB portion (excluding the Anchor Investor portion) was available for allocation to Mulual Funds. Mutual Ftrds were allotted 233,350 Equity Shares, based on valid Bids received at or above the Issue Price. The unsubscribed portion of Mutual Funds was added back to the QIB portion. The total number of Equdy Shares Allotted in the QIB Portion (excluding Anchor Investor Portion) is 10,386,139 Equity Shares, which were allolted to 21 Successful QIB Bidders. The category-wise details of the Basis of Allotment are as under;

Category	Fll	MFs	ICs	Total
QIB	10,115,662	233,350	37,127	10,386,139

E. Allotment to Anchor Investors under Aneher Investor Portion

The Company, in consultation with the Investor Selling Shareholders and the BRLMs, has allocated 15,103,935 Equity Shares to 17 Anchor Investors (through 22 Applications) at the Anchor investor Issue Price of Rs 227 per Equity Share in accordance with the SEBI Regulations. This represents 59.25% of the overall QIB Portion.

Category	FIs/Banks	MFs	ICs	VCs	AIF/FPI	FII	Total
Anchor	-	3,524,170	-	-	3,555,878	8,023,887	15,103,935

The IPO Committee of our Company at Its meellng held on May 17,2016 has taken on record the Basis of Allotrnent of Equity Shares as approved by the Designated Stock Excange, being BSE and has allotted the equity shares to various successful Bidders. The Equity Shares Allotted to the successful Allottees have been uploaded on May 18,2016 for credit into the respective benefciary accounts subject to validation of the accounts details with the depositories concerned. The Company has received listing and trading approval fron BSE and NSE and the trading will commence on May 19,2016.

All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

INVESTORS PLEASE NOTE

The details of the allotrnent made will be hosted on the website of the Registrar to the Issue, Karvy Computershare Private Limited at https://karisma.karvy.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting; full nameof the first/sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for. the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder, and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below.

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32. Gachibowli. Financial District.
Nanakramguda. Hyderabad 500 032, Tel: (91 40) 6716 2222
Fax: (91 40) 23 43 1551; Email: einward.ris@karvy.com
Investor grievance E-mail: parag.ipo@Karvy.com
Website: https://karisma.karvy.com , Contact Person: M. Murli Krishna;

SEBI Registration No.; INR000000221

Place: Pune Date: May 18,2016	For PARAG MILK FOODS LIMITED On behalf of the Board of Directors Sd/- Managing Director

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 PARAG MILK FOODS LIMITED.

Parag Milk IPO Basis of Allotment FAQs

Check the basis of allotment document above to know about how the shares are allocated in Parag Milk IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

The Parag Milk IPO basis of allotment (published above) tells you how shares are allocated to you in Parag Milk IPO and category wise demand of IPO share.

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