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December 3, 2013 - December 6, 2013

Power Grid FPO 2 Basis of Allotment

(This is only an advertisement for information purposes, not for publication or distribution, directly or indirectly outside India and not a Prospectus Announcement)

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 1956') 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 132 of the Prospectus dated December 11,2013 (the 'Prospectus').

Registered Office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi 110 016, India.
Tel: +91 (11) 2656 0112; Fax: +91 (11)26564849;
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

PROMOTER: PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA ('MOP') AND THE MINISTRY OF DEVELOPMENT OF NORTH EASTERN REGION, GOVERNMENT OF INDIA ('MODONER'), PRESENTLY HOLDING 69.42% OF THE ISSUED AND PAID UP CAPITAL OF THE COMPANY. FOR DETAILS, SEE 'CAPITAL STRUCTURE' ON PAGE 36 OF THE PROSPECTUS.

BASIS OF ALLOTMENT

FURTHER PUBLIC OFFER OF 787,053,309 EQUITY SHARES OF RS.10 EACH ('EQUITY SHARES') FOR CASH AT A PRICE OF RS.90* PER EQUITY SHARE OF POWER GRID CORPORATION OF INDIA LIMITED ('POWERGRID', 'OUR COMPANY' OR 'THE ISSUER') AGGREGATING RS.69,586.4 MILLION (THE 'OFFER'). THE OFFER COMPRISES A FRESH ISSUE OF 601,864,295 EQUITY SHARES BY OUR COMPANY (THE 'FRESH ISSUE') AND AN OFFER FOR SALE OF 185,189,014 EQUITY SHARES BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA (THE 'SELLING SHAREHOLDER') (THE 'OFFER FOR SALE'). THE OFFER COMPRISES A NET OFFER TO THE PUBLIC OF 784,053,309 EQUITY SHARES ('THE NET OFFER') AND A RESERVATION OF 3,000,000 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED IN THE PROSPECTUS) (THE 'EMPLOYEE RESERVATION PORTION'). THE OFFER WOULD CONSTITUTE 15.04% OF THE POST OFFER PAID-UP EQUITY CAPITAL OF OUR COMPANY AND THE NET OFFER WOULD CONSTITUTE 14.99% OF THE POST OFFER PAID-UP EQUITY CAPITAL OF OUR COMPANY. THE FACE VALUE OF THE EQUITY SHARE IS RS.10 EACH.

BID/OFFER OPENED ON DECEMBER 3, 2013 AND CLOSED ON DECEMBER 5, 2013 FOR QIB BIDDERS AND ON DECEMBER 6, 2013 FOR ALL OTHER BIDDERS.

THE FACE VALUE OF THE EQUITY SHARES IS RS.10 EACH. THE OFFER PRICE IS 7 90 PER EQUITY SHARE* AND IS NINE TIMES THE FACE VALUE OF THE EQUITY SHARE.

* Discount of Rs. 4.50 to the Offer Price was offered to Retail Individual Investors (the 'Retail Discount') and Eligible Employees bidding in the Employee Reservation Portion (the 'Employee Discount').

The Equity Shares of the Company offered in the Offer are proposed to be listed on the BSE Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading is expected to commence on December 19,2013.

The Offer was made in accordance with Regulation 27 read with Regulation 26(1) (d) and (e) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended ('SEBIICDR Regulations'), through the Book Building Process where 50% of the Net Offer will be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') ('QIB Category'). Further, 5% of the QIB Category will be 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 being received from them at or above the Offer Price. Further, not less than 15% of the Net Offer was available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Net Offer was available for allocation to Retail Individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, 3,000,000 Equity Shares was available for allocation on a proportionate basis to Eligible Employees, subject to valid Bids being received from them at or above the Offer Price.

The Offer received 3,83,061 applications for 5,29,24,67,850 equity shares resulting in 6.72 times subscription. The details of the applications received in the Offer from various categories are as under: (Before technical rejections)

Category No. of
Applications
No. of
Shares
No. of
times subscription
Amount (rs)
A Retail Individual Investors 378,913 587,481,900 2.14 50,246,196,379.50
B Non Institutional Investors 396 1,131,502,800 9.62 101,833,474,650.00
C Qualified Institutional Buyers 265 3,569,460,900 9.11 321,019,940,400.00
D Eligible Employees 3,487 4,022,250 1.34 345,117,727.00
Total 383,061 5,292,467,850 6.72 473,444,729,156.50

Final Demand

A summary of the final demand as per the BSE and the NSE as on the Bid/Offer Closing Dated at different Bid prices is as under:

Bid Price No. of
Equity Shares
% to
Total
Cumulative
Total
Cumulative % to total
85 71,725,950 1.33 71,725,950 1.33
86 419,100 0.01 72,145,050 1.34
87 73,685,700 1.36 145,830,750 2.70
88 20,371,950 0.38 166,202,700 3.08
89 13,257,300 0.25 179,460,000 3.32
90 4,650,178,050 86.10 4,829,638,050 89.42
Cut off Price 571,374,150 10.58 5,401,012,200 100.00
TOTAL 5,401,012,200 100.00

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on December 16, 2013. A. Allotment to Retail Individual Investors (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Investors, who have bid at Cut-off Price or at the Offer Price of 790 per Equity Share net of Retail Discount, was finalized in accordance with the SEBI ICDR Regulations, in consultation with the NSE. This category has been over subscribed to the extent of 2.1077 times. The total number of Equity Shares allotted in Retail Individual Investor category is 27,44,18,658 Equity Shares to 3,70,948 successful applicants. Tfie category-wise details of the Basis of Allotment are as under:

Category No. of Applns. % to total Total No. of Equity Shares applied % to total No. of Equity Shares allotted per applicant Ratio Total No. of Equity Shares allotted
150 44,570 12.02 6,685,500 1.16 150 1:1 6,685,500
300 24,605 6.63 7,381,500 1.28 213 1:1 5,240,865
450 12,303 3.32 5,536,350 0.96 275 1:1 3,383,325
600 15,504 4.18 9,302,400 1.61 338 1:1 5,240,352
750 4,460 1.20 3,345,000 0.58 401 1:1 1,788,460
900 5,341 1.44 4,806,900 0.83 464 1 1:1 2,478,224
1050 23,342 6.29 24,509,100 4.24 526 1:1 12,277,892
1200 16,754 4.52 20,104,800 3.48 589 1:1 9,868,106
1350 1,533 0.41 2,069,550 0.36 652 1:1 999,516
1500 3,548 0.96 5,322,000 0.92 715 1:1 2,536,820
1650 1,411 0.38 2,328,150 0.40 778 1:1 1,097,758
1800 1,861 0.50 3,349,800 0.58 840 1:1 1,563,240
1950 1,024 0.28 1,996,800 0.35 903 1 1:1 924,672
2100 9,403 2.53 19,746,300 3.41 966 1:1 9,083,298
2250 205,289 55.34 461,900,250 79.86 1029 1:1 211,242,381
1 23:910 8,249

B. Allotment to Non Institutional Investors (After Technical Rejections)
The Basis of Allotment to the Non-Institutional Investors, who have bid at the Offer Price of Rs. 90 per Equity Share, was finalized on a proportionate basis in consultation with the NSE. This category has been over subscribed to the extent of 9.6111 times. The total number of Equity Shares allotted in this category is 11,76,07,996 Equity Shares to 375 successful applicants. The category-wise details (sample) of the Basis of Allotment are as under:

Category No. Of Applns. % to total Total No. of Equity Shares applied % to total No. of Equity Shares allotted per applicant Ratio Total No. of Equity Shares allotted
2,250 8 2.13 18,000 0.00 234 1:1 1,872
42,000 1 0.27 42,000 0.00 4,370 1:1 4,370
300,000 4 1.07 1,200,000 0.11 31,214 1:1 124,856
2,220,000 1 0.27 2,220,000 0.20 230,982 1:1 230,982
155,555,550 1 0.27 155,555,550 13.76 16,184,912 1:1 16,184,912

C. Allotment to QIBs (After Technical Rejections)
Allotment to QIBs who have bid at the Offer Price of 790 per Equity Share has been done on a proportionate basis in consultation with the NSE. As per the SEBI ICDR Regulations, Mutual Funds were Allotted 5% of the quantum of Equity Shares available (1,96,01,333 Equity Shares) and other QIBs, including Mutual Funds, were allotted the remaining available Equity Shares (37,24,25,322 Equity Shares) on a proportionate basis. The category-wise details of the Basis of Allotment are as under:

Category Flls FIs/Banks Mutual Funds Insurance Cos. Total
No. of Equity Shares allotted 194,488,061 86,161,139 28,816,594 82,560,861 392,026,655

D. Allotment to Eligible Employees (After Technical Rejections) (including ASBA Applications)
The Basis of Allotment to the Eligible Employees, who have bid at Cut-off Price or at the Offer Price of Rs 90 per Equity Share net of Employee Discount, was finalized on a proportionate basis in consultation with the NSE. This category has been over subscribed to the extent of 1.3086 times. The total number of Equity Shares allotted in Eligible Employee category is 30,00,000 Equity Shares to 3,276 successful applicants.
The Board of Directors of the Company at it's meeting held on December 16, 2013, has approved the Basis of Allotment of the Equity Share and Allotted the Equity Shares based on the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange viz., NSE, to various successful applicants.
The Allotment Advice-cum-Refund Orders and/ or notices have been dispatched on December 18,2013 to the address of the investors as registered with the depositories. Further, instructions to the Self Certified Syndicate Banks have been dispatched/mailed on December 16,2013. In case the same is not received within ten days, investors may contact the Registrar to the Offer 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 Allotted to the successful applicants have been credited on December 17,2013 to their beneficiary accounts subject to validation of the account details with the depositories concerned. Our Company is taking steps for completion of the necessary formalities to get the Equity Shares admitted for trading on the BSE and the NSE within twelve Working Days from the Bid/Offer Closing Date.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated December 11,2013 filed with the Registrar of Companies, National Capital Territory of Delhi and Haryana.

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Offer, Karvy Computershare Private Limited at http://karisma.karvy.cnm

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/Sole Bidder, serial number of the Bid-cum-Application Form, number of Equity Shares Bid for, name of the member of the Syndicate or the Registered Broker and place where the Bid was submitted and payment details at the address given below:

Computershare Private Limited
Plot No. 17 to 24, Vithal Rao Nagar, Madhapur, Hyderabad 500 081, India
Tel: +91 (40) 4455 5000- Fax: +91 (40) 23431551; E-mail: einward.ris@karvy.com
Investor Grievance E-mail: powergrid-fpo@karvy.com
Website: http://karisma.karvy.com; Contact Person: Mr. M. Murali Krishna
SEBI Registration Number: INR000000221

Place : New Delhi
Date : December 19,2013
For Power Grid Corporation of India Limited
Sd/-
Ms. Divya Tandon
Company Secretary and Compliance Officer

Power Grid FPO 2 Basis of Allotment FAQs

Check the basis of allotment document above to know about how the shares are allocated in Power Grid FPO 2. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

The Power Grid FPO 2 basis of allotment (published above) tells you how shares are allocated to you in Power Grid FPO 2 and category wise demand of IPO share.

Visit the Power Grid FPO 2 allotment status page to check the number of shares allocated to your application.

Check the basis of allotment document above to know about how the shares are allocated in Power Grid FPO 2. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).