Raj Television IPO Basis of Allotment

RAJ TELEVISION NETWORK LIMITED

{Registration No. 18-27709) (incorporated on June 3.1994 under the Companies Act, 1956 as a public limited company) Registered Office: 32, Poes Road, Second Steet, Teyampet, chennai 600 018 (The registered office of the company was shifted from12-B, Poes Road, Third Street, Tenyampet, Chennai 600 018 to the above address w.e.f.September 5,1999.)
Tel: 9144 2433 4149; Fax: 9144 24341260;, E-mail: ipo@rajtvnet.in; Website: www.rajtvnet.in,
Compliance Officer:Mr. B. Sathya Prakash

BASIS OF ALLOCATION

PUBLIC ISSUE OF 35,68,280 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH AT A PRICE OF RS. 257/- FOR CASH, (INCLUDING PREMIUM OF Rs.247/- PER SHARE) AGGREGATING RS.9170.40 LAKHS. (HEREINAFTER REFERRED TO AS THE "ISSUE") CONSISTING OF A FRESH ISSUE OF 22,70,700 EQUITY SHARES BY RAJ TELEVISION NETWORK LIMITED (COMPANY OR "ISSUER") AND AN OFFER FOR SALE OF 12,97,550 EQUITY SHARES BY SELLING SHAREHOLDERS. THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF UP TO 32,43,866 EQUITY SHARES OF Rs.10/- EACH (THE "NET ISSUE") AND A RESERVATION OF UP TO 3,24,384 EQUITY SHARESOF RS.10/-EACH, FOR THE ELIGIBLE EMPLOYEES OF THE COMPANY("EMPLOYEE RESERVATION PORTION")

THE ISSUE CONSTITUTES 27.50% OF FULLY DILUTED POST-ISSUE PAID UP CAPITAL OF THE COMPANY.
ISSUE PfRICE:RS. 257/-PER EQUITY SHARE OF FACE VALUE OF RS. 10 EACH.
THE OFFER PRICE IS 25.7 TIMES THE FACE VALUE

In terms of Rule 19 (2)(b) of the Securities Contract Regulation Rules, 1957 this being an Issue for less than 25% of the post-Issue capital, the Issue was being made through the 100% Book Building Process wherein not more than 50% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs"), out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid bids b?ing received from them at w above the Issiie Price. If at least 50% of the Net iss cannot be alllocated to QIBs, allocated to QIBs, then the entire application money will be refunded forthwith. Further, not less than 15% of the Net Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue will 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 39980 applications for 8411775 equity shares resulting in 2.36 times subscription. The details of the applications received in the issue from Qualified Institutional Buyers, Non-institutional, Retail Individual Investors, Employee categories are as under (Before technical rejections):

Final Demand
A summary of the final demand at various price levels as per the electronic book is given below:

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ("BSE")on March 7,2007.The Board of Directors of the company at its meeting held on 7th March,2007 approved the Basis of Allocation of equity shares and allotted the equity shares to successful applicants.

A. Allocation to Employees
The Basis of Allocation to the Employees, who have bid at cut-off or at the Issue Price of Rs.257/- per Equity Share, was finalized in consultation with BSE. The Company has received 60 valid applications for 250575 equity shares as against a reservation 324384 equity shares resulting in subscription of 0.77 times. The total number of shares allotted in this category is 250575 Equity Shares. The shares have been allotted on firm basis to all valid applications. The balance unsubscribed shares of 73809 shares were added to the 'Net Issue'.

B. Allocation to Retail Investors
The Basis of Allocation to the Retail Investors, who have bid at cut-off or at the Issue Price of .Rs.257/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 2.47 times. The total number of shares allotted in this category is 2538769 Equity Shares. The category-wise details of the Basis of Allocationare are as under:

C. Allocation to Non Institutional Investors
The Basis of Allocation to the Non institutional investors, who have bid at the Issue Price of Rs 257/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 0.29 times. The balance unsubscribed porton of 350951 Equity Sharsswere added to Retail Category. Thetotal number of sharesaltotted in this category is 146700 Equity Shares. Thecategory-wisedetailsoftheBasisofAllocation(Sample)areasunder:

D. Allocation to Qualified Institutional Buyers
Allocation to QIBs have been done on a proportionate basis in consultation with the National Stock Exchange Limited. As per the SEBI guidelines,Mutul Funds were initially allotted 5% of the quantum of shares available (82942) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (552258) on proportionate basis. Mutual Funds were allotted 13.06% for QIB segment and other QIB applicants were allotted 86.94% of the Shares for QIB segment.
The balance unsubscribed portion of 986733 Equity Shares were added to Ratail Category.

The Refund Orders and allotment advice and notice has 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 shares allocated to successful applicants are being credited to their beneificiary accounts subject to validation of the accounts details with the depositories concerned. The company is taking steps to get the equity shares admitted for trading on National Stock Exchange of India Limited and Bombay Stock Exchange Limited with in 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, Cameo Corporate Services Limited at www.cameoindia.com
All future correspondece in this regard may kindly be addressed to the Registrars to the Issue quoting full number 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 bid was submitted and payment details at the address given below.

CAMEO CORPORATE SERVICES LIMTED
'Subramanian Building', No. 1, Club House Road, Chennai 600 002, India cameo
Tel:+9144 2846 0390; Fax:+9144 2846 0129
Email: rajtv@cameoindia.com: Website: www.cameoindia.com

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 RAJ TELEVISION NETWORK LIMITED.