SEL IPO Basis of Allotment

AS SALUJA GROUP
SEL Manufacturing Company Limited

(We were incorporated as Saluja Exim Limited on May 8,2000 under the Companies Act, 1956 and obtained certificate of commencement of business on June 2, 2000. The name of our Company was changed to SEL Manufacturing Company Limited by a special resolution of the members passed at an extraordinary general meeting held on June 27, 2003. The name of our Company was again changed to Saluja Exim Limited by a special resolution of the members passed at an extraordinary general meeting held on November 10, 2003. The name of our company was once again changed to SEL Manufacturing Company Limited by a special resolution of the members passed at an extraordinary general meeting held on January 31, 2004. The status of our Company was changed to a private limited company by a special resolution of the members passed at an extraordinary general meeting held on March 15, 2004. The status of our Company was subsequently changed to a public limited company by a special resolution of the members passed at an extraordinary general meeting held on March 14,2006. Our registered office was shifted from Rahon Road, Opposite Octroi Post, Ludhiana to 706, Industrial Area A, Ludhiana, w.e.f June 20, 2001 and again shifted from 706, Industrial Area A, Ludhiana to 274, G.T.Road, Dhandari Khurd, Ludhiana-141 010, Punjab w.e.f. March 30, 2007)
Registered Office: 274, G.T.Road, Dhandari Khurd, Ludhiana-141 010, Punjab
Telephone: +91 161 2510270; Fax: +91 161 2510268.
Corporate Office: Village: Lal Kalan, Tehsil: Samrala, Ludhiana-Chandigarh Road, Near Neelon Canal Bridge, Ludhiana 141 113, Punjab.
Telephone: +91 161 323 8001/02/03; Fax: +91 161 2834 371
Email: ipo@rssalujagroup.co.in, Website: www.salujafabrics.com

ISSUE PRICE: RS. 90 PER EQUITY SHARE OF FACE VALUE RS.10 EACH

THE ISSUE PRICE IS 9 TIMES OF THE FACE VALUE

This Issue is being made through a 100% Book Building Process wherein upto 50% of the Net Issue shall be allotted on a proportionate basis to Qualified Institutional Buyers ('QIBs'). 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. Further, at least 15% of the Net Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and at least 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. Further 2,06,920 Equity Shares shall be available for allocation on a proportionate basis to Eligible Employees subject to valid Bids being received at or above the Issue Price.
The Issue received 11523 bids/applications for 1,32,74,250 equity shares resulting in 3.2076 times subscription. The details of the valid bids/applications received in the Issue from Retail Bidders, Non- Institutional Bidders, Qualified Institutional Buyers and Eligible Employees 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 Monday, August 13, 2007

A) Allocation to Retail investors: (After technical rejections)
The Basis of Allocation to the Retail Investors, who have bid at cut-off or at and above the Issue price of Rs.90/- Equity Share, was finalized in consultation with BSE. The category was subscribed 2.907275 times. The total number of equity shares allotted in this category is 1,37,8,023. Including Spill over from Employee Category (1992 Equity Shares) to successful applicants. The sample of category-wise details of the Basis of Allocation are as under:

B. Allocation to Non-lnstitutional investors: (Alter technical rejections)
The Basis of Allocation to the Non-lnstitutional Investors, who have bid at cut-off or at the Issue Price of Rs.90/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 1.566982 times. The total number of equity shares allotted in this category is 5,90,572 Including Spill over from Employee Category (853 Equity Shares) to successful applicants. A sample of category-wise details of the Basis of Allocation are as under:

C) Allocation to Employees:
The Basis of Allocation to the Employee Category, who have bid at cut-off or at and above the Issue price of Rs.90/- Equity Share, was finalized in consultation with BSE. The category was subscribed 0.986251 times. The total number of equity shares allotted in this category is 204075. The unsubscribe portion (2845 shares) of Employee Category is added to Retail and HNI Category Respectively. The Category-wise details of the Basis of Allocation are as under:

D. Allocation to QIBs:
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (98287) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (1867453) on proportionate basis.

The IPO Committee of the Company at it's Meeting held in Ludhiana on Monday August 13, 2007 has approved the Basis of Allocation and has allotted the equity shares to the successful bidders/applicants:

The CAN-cum-Refund Orders have been dispatched on, Wednesday, August 14, 2007 to the address of the investors as registered with the depositories. In case the same is not received within 10 (ten) days, Investors may contact at the address given below. The Refund Orders have been printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants have been credited to their respective beneficiary accounts subject to validation of the account details with the depositories concerned. SEL Manufacturing Company Limited is taking steps to get the Equity Shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange Limited within seven working days from the date of approval of the Basis of Allocation.

INVESTORS MAY PLEASE NOTE
These details of the allocation / allotment made are being hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.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 equity 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:

INTIME SPECTRUM REGISTRY UNITED
Unit:SEL Manufacturing Company Limited
C-13,Pannlal Silk Compound, LBS Marg, Bhandup (W), Mumbai -400 078
Tel: 91 22 2596 0320, Fax: 91 22 2596 0329
Contact: Person: Mr. Vishwas Attawar
E-mail: selipo@intimespectrum.com: Website: www.intimespectrum.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 SEL MANUFACTURING COMPANY LIMITED.