Power Grid FPO Basis of Allotment

POWER GRID CORPORATION OF INDIA LIMITED

Our Company was incorporated in New Delhi on October 23,1989 under the Companies Act, 1956 (the 'Companies Act') as a public limited company under the name 'National Power Transmission Corporation Limited'. For more information on change in the name of our Company and our registered office, see 'History and Certain Corporate Matters' on page 130 of the Prospectus filed with the RoC. Registered Office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi 110 016, India Tel: +91 (11) 2656 0112 Fax: +91 (11) 2656 4849. Corporate Office: 'Saudamini', Plot No.2, Sector 29, Gurgaon 122 001, Haryana, India Tel: +91 (124) 2571 700 Fax: +91 (124) 2571 848 Company Secretary and Compliance Officer: Ms. Divya Tandon, Company Secretary Tel: +91 (124) 2571 968 Fax: +91 (124) 2571 891
E-mail: investors@powergridindia.com Website: www.powergridindia.com

BASIS OF ALLOTMENT

THE FACE VALUE OF THE EQUITY SHARE IS RS. 10 EACH AND THE ISSUE PRICE IS RS. 90 PER SHARE. THE ISSUE PRICE IS 9.0 TIMES THE FACE VALUE.
*Discount of RS. 4.50 to the Issue Price has been offered to Retail Bidders ('Retail Discount') and Eligible Employees (the 'Employee Discount'), respectively, on Allotment. Based on the Retail and Employee Discount, the Issue Price for both the Retail Individual Bidders and Eligible Employees is RS. 85.5 per Equity Share. Bid opened on November 9,2010 for all Bidders. The Bid closed on November 11,2010 for QIB Bidders and on November 12,2010 for Retail and Non-Institutional Bidders, (including Eligible Employees bidding under Employees Reservation Portion)

This Issue was made through the Book Building Process where up to 50% of the Net Issue was allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') ('QIB Portion'). Further, 5% of the QIB Portion was available for allocation on a proportionate basis to Mutual Funds only. The remainder was available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids received from them at or above the Issue Price. In addition, not less than 15% of the Net Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue was available for allocation on a proportionate basis to Retail Bidders, subject to valid Bids received at or above the Issue Price. Any Bidder could participate in this Issue through the Application Supported by Blocked Amount ('ASBA') process by providing the details of the ASBA Accounts in which the corresponding Bid Amounts were blocked by the Self Certified Syndicate Banks ('SCSBs'). For more information, specific attention is invited to 'Issue Procedure' on page 375 of the Prospectus.

The Issue received 1,427,845 applications for 12,493,521,170 Equity Shares resulting in 14.84 times subscription, out of these there were 302,904 number of applicaitons for 7,756,839,090 Equity Shares made under the ASBA process. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors and Eligible Employee categories are as under: (Before technical rejections)

Final Demand
A summary of the final demand as per the Bombay Stock Exchange Limited ('BSE') and the National Stock Exchange of India Limited ('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 NSE on November 20,2010.

A. Allocation to Eligible Employees (Including ASBA Applications) (After Technical Rejections)
The basis of allocation to the Eligible Employees of Power Grid Corporation of India Limited, who have Bid at cut off or at the Issue Price of Rs. 90/- per Equity Share (Discount of Rs. 4.50 for Eligible Employees on Allotment), was finalized in consultation with NSE. This category has been subscribed to the extent of 1.14 times. There were 1,207 applications for 1,072,955 Equity Shares made under ASBA process. Of these 1,180 applications for 1,048,125 equity shares were found valid and they were considered for Allotment. The total number of Equity Shares Allotted in this category is 3,389,600 to 4,495 applicants. The category-wise details of the basis of allocation are as under:

B. Allocation to Retail Individual Investors (Including ASBA Applications) (After Technical Rejections)
The basis of allocation to the Retail Investors, who have Bid at cut-off or at the Issue Price of Rs. 90/- per Equity Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 3.81 times. There were 300,068 applications for 208,927,875 equity shares made under the ASBA process. Of these 293,703 applications for 205,937,550 Equity Shares were found valid and they were considered for Allotment. The total number of Equity Shares Allotted in Retail Investor category is 293,432,526 Equity Shares which were allotted to 1,274,839 successful applicants. The category-wise details of the basis of allocation are as under:

C. 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. 90/- per Equity Share was finalized in consultation with NSE. This category has been subscribed to the extent of 28.78 times. There were 1,300 applications for 791,476,530 Equity Shares made under ASBA process. Of these 1,127 applications for 785,780,125 Equity Shares were found valid and they were considered for Allotment. The total number of Equity Shares Allotted in Non Institutional Investor category is 125,756,797 Equity Shares to 3,804 successful applicants. The sample of category-wise details of the basis of allocation are as under:

D. Allocation to QIBs (Including ASBA Applications) (After Technical Rejections)
The basis of allocation to the QIBs, who have Bid at the Issue price of Rs. 90/- per Equity Share was finalised in consultation with NSE. This category has been subscribed to the extent of 18.49 times. There were 329 applications for 6,755,361,730 Equity Shares made under ASBA process. These 329 applications for 6,755,361,730 Equity Shares were found valid and they were considered for Allotment. The quantum of Equity Shares Allotted to this category is 419,189,323 for 391 successful applicants on proportionate basis. Further, Mutual Funds were initially allocated 5% of the quantum of Equity Shared available, that is 20,959,467 number of Equity Shares.

The FPO Committee of the Company at its meeting held at Hyderabad on 23rd November, 2010 has approved the basis of allocation of Equity Shares of the Issue and has accordingly Allotted the Equity Shares to the successful Bidders.

The CAN-cum-Refund Orders and Allotment advice and/ or notices will be dispatched to the address of the Bidders as registered with the depositories on or prior to 25th November, 2010. Further, the instructions to Self Certified Syndicate Banks have been dispatched on or prior to 22nd November, 2010. 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 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 on 25th November 2010.

The details of the allocation made are available on the website of Registrar to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.com

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:

Computershare Private Limited: Unit: Power Grid Corporation of India Limited
Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur, Hyderabad - 500081,
Fax: 040-23420814 Email: einward.ris@karvy.com

TOLL FREE - HELPLINE NUMBER: 1-800-3454001

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUFTY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF POWER GRID CORPORATION OF INDIA LIMITED.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated November 16,2010 filed with RoC, National Capital Territory, Delhi and Haryana.

Power Grid Corporation of India Limited subject to market conditions and other considerations, has made a further public offer of securities and has filed a Prospectus with the Registrar of Companies, National Capital Territory of Delhi and Haryana and the Securities and Exchange Board of India (SEBI). The Prospectus is available on the website of the SEBI at www.sebi.gov.in as well as on the website of the Book Running Lead Managers at www.sbicaps.com, http://www2.goldmansachs.com/ worldwide/ india/ indian_offerings.html, www.icicisecurities.com and www.jpmipl.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 filed with the RoC. This advertisement may not be published or distributed in the United States and does not constitute an offer of securities for sale or the solicitation of any offer to buy securities in any jurisdiction, including the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the 'US Securities Act), or an exemption therefrom. The Equity Shares have not been and will not be registered under the US Securities Act or any state securities laws in the United States and may not be offered or sold in the United States except c pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and in accordance with any applicable U.S. state' securities laws. The Equity Shares are being offered and sold within the United States only in compliance with Rule 144A under the US Securities Act, and outside the United States only in compliance with Regulation S under the US Securities Act and the applicable laws of each jurisdiction where such offers and sales occur. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in this advertisement, will not accepeted.