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September 10, 2007 - September 13, 2007

Power Grid IPO Basis of Allotment

POWER GRID CORPORATION OF INDIA LIMITED

(Incorporated on October 23,1989 under the Companies Act, 1956 as a public limited company.
The name of our company was changed from National Power Transmission Corporation Limited to
Power Grid Corporation of India Limited w.e.f October 23,1992.)
Regd. Office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi -110 016.
Tel:+91-11- 2656 0112, Fax:+91-11-2656 4849.
Corp. Office: 'Saudamini', Plot No.2, Sector 29, Gurgaon - 122 001,
Tel:+91-124- 2571 700, Fax:+91-124-2571 848
E-mail: investors@powergridindia.com Website: www.powergridindia.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF UP TO 57,39,32,895 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 52/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 42/- PER EQUITY SHARE) AGGREGATING TO RS 29,844.51 MILLION (REFERRED TO AS 'THE ISSUE'). THE ISSUE COMPRISED A FRESH ISSUE OF UP TO 38,26,21,930 EQUITY. SHARES BY POWER GRID CORPORATION OF INDIA LIMITED ('COMPANY' OR 'ISSUER'). AND AN OFFER FOR SALE OF UP TO 19,13,10,965 EQUITY SHARES BY THE PRESIDENT OF INDIA ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA. THE ISSUE COMPRISED A NET ISSUE TO THE PUBLIC OF UP TO 55,99,54,895 EQUITY SHARES AND A RESERVATION OF UP TO 1,39,78,000 EQUITY SHARES FOR SUBSCRIPTION BY EMPLOYEES OF THE COMPANY. THE ISSUE CONSTITUTES APPROXIMATELY 13.64% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF POWER GRID CORPORATION OF INDIA LIMITED.

THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 52/-. THE ISSUE PRICE IS 5.2 TIMES THE FACE VALUE.
The Issue made through the 100% Book Building Process wherein at least 50% of the Net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ('QIBs') (including 5% of the QIB portion that was to specifically be allotted to mutual funds), further, not less than 15% of the Issue was to be allocated on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue was to be allocated on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.
The Issue received 12,59,949 applications for 3702,43,77,933 equity shares resulting in 64.50 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investor and Employee categories are as under: (Before technical rejections)

Category No. of Applications No. of Shares Subscription
Qualified Institutional Buyers 638 3232,97,56,625 115.47
Non Institutional Investors 6,995 333,84,76,407 39.75
Retail Individual Investors 12,47,436 131,02,19,726 6.68
Employees 4,880 4,59,25,175 3.28

Final Demand
A sample of the final demand at different bid prices is as under:

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to total
44 11243375 0.03 37197636375 100.00
45 4566250 0.01 37186393000 99.97
46 1275875 0.00 37181826750 99.96
47 585125 0.00 37180550875 99.95
48 9742625 0.03 37179965750 99.95
49 893000 0.00 37170223125 99.93
50 3299750 0.01 37169330125 99.92
51 184125 0.00 37166030375 99.92
Rs. 52 & at Cut Off 37165846250 99.91 37165846250 99.91
37197636375 100.00

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited ('NSE') on September 26, 2007.

A.Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at the Issue Price of Rs. 52/- per Equity Share, was finalized in consultation with the NSE. The category was over subscribed 3.188824 times. The total number of Equity Shares allotted in this category is 13978000 Equity Shares to 4649 successful applicants. The category-wise details of the Basis of Allocation (Sampled are as under:

Category No. of Applns. %to Total Total No. of Equity Shares applied % to Total No. of Equity Shares allocated Ratio Total No. of Equity Shares allocated
125 30 0.64 3750 0.01 125 1:3 1250
250 54 1.15 13500 0.03 125 7:11 4250
375 40 0.85 15000 0.03 125 8:9 4500
500 92 1.96 46000 0.10 157 FIRM 14444
2000 310 6.61 620000 1.39 627 FIRM 194370
8000 82 1.75 656000 1.47 2509 FIRM 205738
16000 23 0.49 368000 0.83 5018 FIRM 115414
32000 1 0.02 32000 0.07 10035 FIRM 10035
36000 3 0.06 108000 0.24 11289 FIRM 33867
38000 5 0.11 190000 0.43 11917 FIRM 59585
40000 10 0.21 400000 0.90 12544 FIRM 125440
40500 1 0.02 40500 0.09 12701 FIRM 12701
43750 2 0.04 87500 0.20 13720 FIRM 27440
45500 1 0.02 45500 0.10 14269 FIRM 14269
47500 2 0.04 95000 0.21 14897 FIRM 29794
48000 11 0.23 528000 1.18 15051 FIRM 165561

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who bid at cut-off or at the Issue Price of Rs.52/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 6.549691 times. The total number of shares allotted in this category is 19,59,84,213 Equity Shares to 9,28,299 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category No. of Applns. %to Total Total No. of Equity Shares applied % to Total No. of Equity Shares allocated Ratio Total No. of Equity Shares allocated
125 107858 8.87 13482250 1.05 125 2:13 2074250
250 140571 11.56 35142750 2.74 125 11:36 5369000
375 63815 5.25 23930625 1.86 125 11:24 3656125
500 133438 10.98 66719000 5.20 125 11:18 10193125
625 37590 3.09 23493750 1.83 125 13:17 3593125
750 36047 2.97 27035250 2.11 125 11:12 4130375
875 94971 7.81 83099625 6.47 134 FIRM 12726114
1000 92761 7.63 92761000 7.23 153 FIRM 14192433
1125 12079 0.99 13588875 1.06 172 FIRM 2077588
1250 23416 1.93 29270000 2.28 191 FIRM 4472456
1375 5770 0.47 7933750 0.62 210 FIRM 1211700
1500 16673 1.37 25009500 1.95 229 FIRM 3818117
1625 4768 0.39 7748000 0.60 248 FIRM 1182464
1750 10621 0.87 18586750 1.45 267 FIRM 2835807
ADDITIONAL 17:19 9502
1875 435112 35.80 815835000 63.56 286 FIRM 124442032

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non institutional Investors, who bid at the Issue Price of Rs.52/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 39.283587 times. The total number of shares allotted in this category is 83993234 Equity Shares to 4829 successful applicants. The category-wise details of the Basis of Allocation (Sample) are as under:

Category No. of Applns. %to Total Total No. of Equity Shares applied % to Total No. of Equity Shares allocated Ratio Total No. of Equity Shares allocated
2000 832 14.84 1664000 0.05 125 2:5 41625
4000 89 1.59 356000 0.01 125 5:6 9250
10000 153 2.73 1530000 0.05 255 FIRM 39015
50000 63 1.12 3150000 0.10 1273 FIRM 80199
100000 108 1.93 10800000 0.33 2546 FIRM 274968
300000 16 0.29 4800000 0.15 7637 FIRM 122192
500000 113 2.02 56500000 1.71 12728 FIRM 1438264
1000000 67 1.20 67000000 2.03 25456 FIRM 1705552
2000000 33 0.59 66000000 2.00 50912 FIRM 1680096
4000000 12 0.21 48000000 1.45 101824 FIRM 1221888
8000000 1 0.02 8000000 0.24 203647 FIRM 203647
18000000 1 0.02 18000000 0.55 458207 FIRM 458207
30000000 1 0.02 30000000 0.91 763678 FIRM 763678
36000000 1 0.02 36000000 1.09 916413 FIRM 916413
42300000 1 0.02 42300000 1.28 1076796 FIRM 1076796
45000000 1 0.02 45000000 1.36 1145527 FIRM 1145527
58000000 1 0.02 58000000 1.76 1476455 FIRM 1476455

D.Allocatlon to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with the NSE. As per the SEBI Guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (1,39,98,873) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (26,59,78,575) on proportionate basis.

Category Fls/Banks MFs Flls VCs ICs Others Total
No.of Shares 32218140 37023924 186091385 171537 20728070 3744392 279977448

The Board of Directors of the Company at its Meeting held at Hyderabad on September 26, 2007 has approved the basis of allocation of Equity Shares in the Issue and has allotted the Equity Shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices have been dispatched to the address of the investors as registered with the Depositories. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Mandate 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 concerned Depositories. The Company is taking steps to get the Equity Shares admitted for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrars to the Issue, Karvy Computershare Private Limited at http://kcpl.karvy.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:

Karvy Computershare Private Limited:
Unit: PGCIL: Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur Hyderabad - 500 081,
Fax: 040-23420814 Email: einward.ris@karvy.com

TOLL FREE - HELPLINE NUMBER 1-800-3454001



Place : New Delhi
Date : October 1, 2007

For Power Grid Corporation of India Limited
Sd/-
Divya Tandon
Company Secretary and Compliance Officer

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 POWER GRID CORPORATION OF INDIA LIMITED.

Power Grid IPO Basis of Allotment FAQs

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

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

Visit the Power Grid IPO 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 IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).