Prakash Steelage IPO Basis of Allotment

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Prakash Steelage Ltd

Incorporated on 09/05/1991 under the companies Act, 1956 as 'Prakash Steelage Private Limited' vide Certificate of Incorporation issued by the Registrar of Companies Maharashtra, Mumbai. The Company was later converted into a public company and the name was changed to 'Prakash Steelage Limited' pursuant to shareholders resolution dated 11/07/1997 and received a certificate of change of name on 12/08/1997.

Registered Office: 701, Mahalaxmi Chambers, Bhulabhai Desai Road, Mumbai - 400 026. Tel: +91-22-2352 6513 / 14, Fax: +91-22-2352 6576, Email: cs@prakashsteelage.com Website: www.prakashsteelage.com

PUBLIC ISSUE OF 62,50,000 EQUITY SHARES OF Rs.10/- EACH ('EQUITY SHARES') OF PRAKASH STEELAGE LIMITED (THE 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF Rs. 110/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs.100/- PER EQUITY SHARE) AGGREGATING TO RS. 6875 LACS (THE 'ISSUE'). UPTO 1,00,000 EQUITY SHARES WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE 'EMPLOYEE RESERVATION PORTION'). THE ISSUE WOULD CONSTITUTE 35.71 % OF THE FULLY DILUTED POST-ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY. THE FACE VALUE OF THE EQUITY SHARES IS RS. 10/- EACH AND THE ISSUE PRICE IS 11 TIMES THE ISSUE PRICE.

The Issue is being made through the 100% Book Building Process wherein upto 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers ('QIB Portion') Bidders. Out of which 5% of the QIB Portion shall be available for allocation-on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be 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 shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. The Issue received 28427 applications for 26436250 equity shares resulting in 4.528 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors and Employee categories, which are as under: (Before technical rejections).

Final Demand

A summary of the final demand as per the BSE and the 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 Bombay Stock Exchange Limited ('BSE') on August 19,2010 and due to rounding off, 39 equity shares have been additionally allotted thereby allotting a total of 62,50,039 equity shares.

A. Allocation to Retail Individual Investors (Including Applications Supported by Blocked Amount ('ASBA') (After Technical Rejections)

The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs.110/- per Equity Share, was finalized in consultation with BSE, This category has been subscribed to the extent of 6.168 times, there were 27211 applications for 13322400 equity shares. The total number of shares allotted In Retail Individual Investor Category is 2159693 equity shares which Includes a spill over of 7154 shares from Employee category which were allotted to 17794 successful applicants. The category-wise details of the Basis of Allocation are as under:

B. Allocation to Non Institutional Investors (After Technical Rejections)

The Basis of Allocation to the Non-Institutional Investors, who have bid at or above the Issue Price of Rs.110/- per Equity Share, was finalized in consultation with BSE. This category have been subscribed to the extent of 9.563 times. Overall 115 applications for 8851560 equity shares were found valid and on proportionate basis, the company .have allotted 925566 equity shares which Includes a spill over of 3066 equity shares from Employee category, which were allotted to 115 applicants. The category-wise details of the Basis of Allocation are as under:

C. Allocation to QIBs

The Basis of Allocation to the Qualified Institutional Bidders, who have bid at or above the Issue price of Rs. 110/- per Equity Share was finalized in consultation with BSE. Overall 13 applications for 3902220 Equity Shares were found valid and the quantum of shares allotted to this category is 3085220 which includes a spill over of 10220 equity shares from Employee category. The summary of allotment is as under:

D. Employee Investors

Overall 93 applications for 79560 Equity Shares were found valid and firm allotment is made due to under subscription in this category. The undersubscribed 20440 equity shares from Employee category have been spilled over to QIB, Retail & Non Institutional category in the ratio of 50:35:15

The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on or prior to 21.08.2010. Further, the instructions to Self Certified Syndicate Banks have been dispatched on or prior to 21.08.2010. 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 within four working days from the date of approval of the basis of allocation.

This details of the allocation made would be hosted on the website of Registrar to the Issue, Blgshare Services Pvt.Ltd at www.bigshareonline.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:

Bigshare Services Private Limited
Unit: Prakash Steelage Limited
E-2/3, Ansa Industrial Estate, Sakivihar Road, Sakinaka, Andheri (E), Mumbai - 400 072. Fax: 022-28475207,
Email: ipo@bigshareonline.com

HELPLINE NUMBER 022-40430200

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 PRAKASH STEELAGE LIMITED.