Sarthak Metals IPO Basis of Allotment

SARTHAK METALS LIMITED

Corporate Identity Number: U51102CT1995PLC009772

Our Company was originally Incorporated on July 28,1995, as 'Sarthak Metals Marketing Private Limited' under the provisions of the Companies Act, 1956 with the Registrar of Companies. Madhya Pradesh, Gwalior. The name of Company was changed 10 'Sarthak Metals Private Limited' vide shareholders resolution passed at the Extra Ordinary General Meeting of the Company held on August 13,2016 and a fresh Certificate or Incorporation pursuant to change of name dated August 22,2016 was issued by the Registrar of Companies. Chhattisgarh. Further, pursuant to Shareholders- Resolution passed at the Extra Ordinary General Meeting of the Company held on August 13, 2016, our Company was converted into a public limited company and accordingly the name of our Company was changed to 'Sarthak Metals Limited' vide a fresh Certificate of incorporation dated August 23. 2016. issued by the Registrar of Companies, Chhattisgarh. For further details, please see the section titled 'History and Certain Other Corporate Matters' beginning on page 108 of the Prospectus.

Registered Office: B .B .C Colony, G-E .Road, Khursipar, Bhilai - 490 011. Chhattisgarh, India Tel: +91 - 788-3290584 / 2296495 |
Fax; +91 -788-2225874 Website: www.sarthakmetals.com | Company Secretary and Compliance Officer: Ms. Brinda Sethi |
Email: cs@sarthakmetals.com Contact Person: Mr. Anirudh Singhal. Chief Financial Officer | Email: cfo@sarthakmetals.com

PROMOTERS OF THE COMPANY: MR, ANOOP KUMAR BANSAL MR. KlSHORE KUMAR BANSAL, MR. MANOJ KUMAR BANSAL AND MR. SANJAY SHAH

BASIS OF ALLOTMENT

PUBLIC OFFER OF 36,36,000 EQUITY SHARES OF FACE VALUE OF RS 10.00 EACH OF SARTHAK METALS LIMITED ('THE COMPANY' OR 'SML') FUR CASH AT A PRICE OF RS 30.00 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 20,00 PER EQUITY SHARE) ('OFFER PRICE') AGGREGATING TO RS 1090.80 LAKHS ('THE OFFER') CONSISTING OF A FRESH ISSUE OF 16,00,000 EQUITY SHARES AGGREGATING TO RS 480,00 LAKHS (THE 'FRESH ISSUE') AND AN OFFER FOR SALE OF 20,36,000 EQUITY SHARES BY THE SELLING SHAREHOLDERS AGGREGATING TO RS 610.80 LAKHS ('OFFER FOR SALE') AND TOGETHER WITH THE FRESH ISSUE ('THE OFFER') OF WHICH. 1.96.000 EQUITY SHARES AGGREGATING TO RS 58,80 LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKER ('MARKET MAKER RESERVATION PORTION'). THE OFFER LESS THE MARKET MAKER RESERVATION PORTION I.E. OFFER OF 34,40,000 EQUITY SHARES OF FACE VALUE OF RS 10.00 EACH AT AN OFFER PRICE OF RS 30.00 PER EQUITY SHARE AGGREGATING TO RS 1032,00 LAKHS IS HEREINAFTER REFERRED TO AS THE 'NET OFFER'. THE OFFER AND THE NET OFFER WILL CONSTITUTE 26-56% AND 25.13%, RESPECTIVELY OF THE POST OFFER PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.

THIS OFFER IS BEING MADE IN ACCORDANCE WITH CHAPTER XB OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009, (THE 'SEBI ICDR REGULATIONS') AS AMENDED.

THE FACE VALUE OF THE EQUITY SHARES IS RS 10 EACH AND
THE OFFER PRICE IS RS 30.00. THE OFFER PRICE IS 3.00 TIMES OF THE FACE VALUE.

OFFER OPENED ON FRIDAY, MARCH 10, 2017 AND CLOSED ON FRIDAY, MARCH 17, 2017.

The Equity Shares of the Company are proposed to be listed on the SME Platform of BSE Limited. In terms of the Chapter XB of the SEBI (ICDR) Regulations, 2009, as amended from time to time, we are not required to obtain an in-principle listing approval from BSE Limited ('BSE'). However. Our Company has received an approval via letter dated February 21, 2017 from BSE for using its name in the offer document for listing of our shares on the SME Platform of BSE. BSE shall be the Designated Stock Exchange For the purpose of this Offer, The trading is proposed to be Commenced on or before March 27, 2017*
* Subject to receipt of listing and trading approvals from the BSE.

This being a Fixed Price Offer, the allocation in the Net Offer to the Public category shall be made as per Regulation 43 (4) of the SEBI (ICDR) Regulations, 2009. as amended from time to time, wherein a minimum of 50% of the Net Offer of shares to the Public shall Initially be made available for allotment to Retail individual Investors. The balance Net offer of Shares to the public shall be made available for allotment to Individual Applicants other than Retail Individual Investors and other Investors, including Corporate Bodies / Institutions irrespective of number of shares applied for Under subscription, if any. In any of the categories, would be allowed to be met with spillover from any of the other categories or a combination of categories at the discretion of our Company in consoltation with the Lead Manager and the Designation Stock Exchange, Such inter-se spill over, if any, would be affected in accordance with applicable laws, rules, regulations and guidelines, All Investors shall participate in the offer only through APPLICATIONS SUPPORTED BY BLOCKED AMOUNT ('ASSA') process by providing the details or their respective bank accounts, in which the corresponding application amounts were blocked by Sell Certiiied Syndicate Banks (the 'SCSBs').

SUBSCRIPTION DETAILS

The offer has received 609 applications for 5948000 Equity Shares resulting In 1.64 times subscription (including reserved portion of market maker). The details of the applications received in the offer (before technical rejections) are as follows:
Detail of the Applications Received (Before Technical Rejection):

Category	No. of Application(s)	% of Total	No.of Equity Shares	% of Total	Subscription (Times)
Market Makers	1	0.16	196000	3.30	1.00
Retail Individual Investors	546	89.66	2184000	36.71	1.27
Other than Retail Individual Investors	62	10.18	3568000	59.99	2.07
TOTAL	609	100.00	5948000	100 00	1.64

The details of applications rejected by the Registrar on technical grounds (including withdrawal) are detailed below:

Category	No. of Applications	No. of Equity Shares
Market Makers	Nil	Nil
Retail Individual Investors	18	72000
Other than Retail Individual Investors	1	32000
Total	19	104000

After eliminating Technically rejected applications, the following tables give us category wise net valid applications:

Category	No. of Application(s)	% of Total	Reserved Portion (As per Prospectus)	No.of Valid Shares Applied	% ot Total Applied	Subscription (Times)
Market Makers	1	0.17	196000	196000	3.35	1.00
Retail Individual Investors	528	89.49	1720000	2112000	36.14	1.23
Other than Retail Individual Investors	61	10.34	1720000	3536000	60.51	2.06
Total	590	100.00	3636000	5844000	100.00	1.61

ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - BSE Limited {BSE) on March 22, 2017.

A. Allocation to Market Maker (After Technical Rejections & Withdrawal): The Basis of Allotment to the Market Maker, at the offer price of Rs 30 per Equity Share, was finalised in consultation with BSE. The category was subscribed by 1.00 times. The total number of shares allotted in this category is 1,96,000 Equity shares.

B. Allocation to Retail Individual Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to the Retail Individual Investors, at the offer price of Rs. 30 per Equity Share, was finalized in consultation with BSE. The category was subscribed by 1.227 times. Total number of shares allotted in this category is 17,20,000 Equity Shares to 430 successful applicants.

The category wise details of the Basis of Allotment are as under:

No. of Shares Applied for (Category wise)	No. of Applications received	% of Total	Total No. of Equity Shares applied in this Category	% of Total	Proportionate Shares Available	Allocation per Applicant (Before Rounding off)	Allocation per Applicant (Before Rounding off)	Ratio of Allottees to Applicants Ratio	Number of Successful applicants (after rounding off)	Total No. of Equity Shares allocated/ allotted	No. of Shares Surplus/ Deficit
4,000	528	100.00	21,12,000	100.00	17,20,000	3,257.58	4,000	430:528	430	17,20,000	0
TOTAL	528	100.00	21,12,000	100.00	17,20,000				430	17,20,000	0

C. Allocation to Other than Retail Individual Investors (After Technical Rejections & Withdrawal): The Basis of allotment to other than Retail individual investors, at the offer price of Rs 30 per Equity Share, was finalized in consultation with BSE. The category was subscribed by 2.056 times. The total number of shares allotted in this category is 17,20,000 Equity Shares to 61 successful applicants.

The category wise details of the Basis of Allotment are as under:

No. of Shares Applied for (Category wise)	No. of Applications received	% of Total	Total No. of Equity Shares applied in this Category	% of Total	Proportionate Shares Available	Allocation per Applicant (Before Rounding off)	Allocation per Applicant (Before Rounding off)	Ratio of Allottees to Applicants Ratio	Number of Successful applicants (after rounding off)	Total No. of Equity Shares allocated/ allotted	No. of Shares Surplus/ Deficit
8000	13	21.31	104000	2.94	50588	3891.40	4000	1:1	13	52000	1412
12000	2	3.28	24000	0.68	11674	5837.10	4000	1:1	2	8000	(3674)
16000	4	6.56	64000	1.81	31131	7782.81	8000	1:1	4	32000	869
20000	4	6.56	80000	2.26	38914	9728.51	8000	1:1	4	32000	(6914)
							4000	2:4		8000	8000
24000	8	13.11	192000	5.43	93394	11674.21	12000	1:1	6	96000	2606
32000	11	18.03	352000	9.95	171222	15565.61	16000	1:1	11	176000	4778
36000	2	3.28	72000	2.04	35023	17511.31	16000	1:1	2	32000	(3023)
40000	2	3.28	80000	2.26	38914	19457.01	20000	1:1	2	40000	1086
60000	1	1.64	60000	1.70	29186	29185.52	28000	1:1	1	28000	(1186)
76000	1	3.28	152000	4.30	73937	36968.33	36000	1:1	2	72000	(1937)
80000	1	1.64	80000	2.26	38914	38914.03	40000	1:1	1	40000	1086
84000	1	1.64	84000	2.38	40860	40859.73	40000	1:1	1	40000	(860)
96000	1	1.64	96000	2.71	46697	46696.83	48000	1:1	1	48000	1303
100000	1	1.64	100000	2.83	48643	48642.53	48000	1:1	1	48000	(643)
112000	1	1.64	112000	3.17	54480	54479.64	56000	1:1	1	56000	1520
116000	1	1.64	116000	3.28	56425	56425.34	56000	1:1	1	56000	(425)
120000	1	1.64	120000	3.39	58371	58371.04	60000	1:1	1	60000	1629
168000	1	1.64	168000	4.75	81719	81719.46	80000	1:1	1	80000	(1719)
332000	2	3.28	664000	18.78	322986	161493.21	160000	1:1	2	320000	(2986)
336000	1	1.64	336000	9.50	163439	163436.91	164000	1:1	1	164000	561
480000	1	1.64	480000	13.57	233483	233404.16	232000	1:1	1	232000	(1483)
TOTAL	61	100.00	3536000	100.00	1720000				61	172000	0

The Board of Directors of the Company at its meeting held on March 23, 2017 has approved the Basis of Allocation of Equity Shares as approved by The Designated Stock Exchange viz. BSE and has authorized the corporate action for the transfer of the Equity Shares to various successful applicants.
The CAN and allotment advice and/or notices are being dispatched to the address of the Applicants as registered with the depositories Further, the instructions to Self Certiiied Syndicate Banks for unblocking the amoont have been processed on March 23, 2017. In case the same is not received within prescribed time, investors may contact at the address given below. The Equity Shares allocated to succcsstul 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 SME Platform of BSE Limited within six working days from the date of the closure of the Offer.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated February 25, 2017 ('Prospectus')

INVESTORS PLEASE NOTE

The details of the allotment made would also he hosted on the website of the Registrar to the offer, Big Share- Services Private Limited at www.bigshareonline.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting lull name of the First / Sole applicants, serial number of the Application Form, number of shares applied for and Bank Branch where the application had been lodged and payment details at the address of the Registrar given below:

BIGSHARE SERVICES PRIVATE LIMITED
E-2/3, Ansa Industrial Estate, Sakivihar Road, Sakinaka, Andheri (E), Mumbai - 400 072. | Tel: +91-22-40430200 | Fax: +91-22-2647 5207 Email: ipo@bigshareonline.com | Website: www.bigshareonline.com Contact Person: Mr. Ashok Shetty | SEBI Registration No.: INR000001385

Place: Bhilai Date : March 24,2017	For Sarthak Metals Limited On Behalf of the Board of Directors Sd/- Anoop Kumar Bansal Chairman and Managing Director

Sarthak Metals IPO Basis of Allotment FAQs

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

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