SMS Pharmaceuticals IPO Basis of Allotment

SMS PHARMACEUTICALS LIMITED

(Our Company was incorporated as S.M.S. Pharmaceuticals Private Umitad, on December 14,1987 under the Companies Act 1956. Subsequently our company became a public United Company and the name was changed to S.M.S. Pharmaceuticals Limited on Novembers 1994. Subsequently on April 12, 2004 our Company was renamed as SMS Pharmaceuticals Limited.)
Registered Office: 417, Nilgiri, Aditya Enclave, Ameerpet, Hyderabad - 500 038 Andhra Pradesh, India. {Registered office of our Company was shifted from Flat No. 4, PlotNo.24,Gayatri nagar,Srinivasa colony, Hyderabad to 7-1-616/131, Rahmat commercial complex, Ameerpet on october 16,1989 and to MIG 33.APIIC Colony,Jeedimetla, Hyderabad on November 2,1990 and to 7-1^-77/E/1/303, Divi Towers, Dharam Karan Road, Ameerpet, Hyderabad on January 1,1993 and to 115/2RT, S. R. Nagar,Hyderabad on November 1,1993 and to our present address on January 1,1998}
Tel: +91-40-2374 6059 / 6469/ 8154, Fax: +91 -40-6636 4417 / 2373 2709,

Website: www.smspharma.com Email: ipo@smspharma.com.
Contact Person: Mr. Y Nagarjuna Rao, Assistant General Manager, HR & Legal, Compliance Officer

BASIS OF ALLOTMENT

ISSUE OF 2,577,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 380 PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 370 PER SHARE) AGGREGATING RS. 979.26 MILLION BY SMS PHARMACEUTICALS UMITED ('SMS' OR 'THE COMPANY' OR 'THE ISSUER'). THE ISSUE COMPRISES OF 'NET ISSUE TO THE PUBLIC' OF 2,577,000 EQUITY SHARES AGGREGATING RS. 979.26 MILLION. THE NET ISSUE TO THE PUBLIC WOULD CONSTITUTE 25.77% OF THE FULLY DILUTED POST ISSUE PAID UP CAPITAL OF THE COMPANY.

The Issue made through the 100% Book Building Process wherein not more than 50% of the Issue to the public 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 Net Issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue to the public shall be available tor allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 24,244 applications for 65,83,370 equity shares resulting In 2.55 times subscription.

The Basis of Allotment for all the categories namely Retail Individual Investors, Non Institutional Investors and Qualified Institutional Buyers was approved by Bombay Stock Exchange Limited (Designated Stock Exchange) on February 21,2007. The Board of Directors of the Company at its Meeting held at Hyderabad, on February 22,2007, allotted the Equity Shares to the successful applicants. Details of valid applications received and allotments done are as under:

PUBLIC ISSUE

2,225 excess equity shares have been allotted In Retail category due to rounding off.

A. Allotment to Retail investors (After Technical Rejections)
All the bidders In the Retail Investors, who have bid at cut-off or at the Issue Price of Rs. 380/- per Equity Share, have been considered while preparing the basis of allotment. The category was over subscribed 1.62 times (Here the retail portion means the shares originally allocated to retail category plus the unsubscribed shares in the Non Institutional Investors category). Whereas on the basis of the original allocation available to the retail category, the category was over subscribed 2.20 times. The total number ot shares allotted in this category is 12,27,620 Equity Shares. The category-wise details of the Basis of allotment are as under:

B. Allotment to Non institutional Investors (After Technical Rejections)

All the bidders in the Non Institutional Category, who have bid at the Issue Price of Rs 380/- per Equity Share, have been considered while preparing the basis of allotment. The category was undersubscribed. The total number of shares allotted in this category is 63,105 Equity Shares.
All the applicants In this category have bean given firm allotment.

C. Allotment to QIBs

The total number of Equity Shares allotted In this category are 12,88,500 Equity Shares (50% of total Equity Shares allotted). All the applicants In this category have been given Firm Allotment on a PROPORTIONATE BASIS.

Refunds have been made through ECS, Direct credit, RTGS and NEFT, Into the Bank Accounts of the applicants, as registered with the depositories, for applicants residing at any of the 15 centres specified by SEBI, For other applicants Refund Orders have been despatched to their address as registered with the depositories. In case the same is not received within ten days, applicants may contact at the address given below. ECS Intimation Note and Refund Orders have been over-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 beneficiary accounts.
The company is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allotment.
INVESTORS PLEASE NOTE

This details of the allotment mads would be hosted on the website of Registrars to the Issue, Aarthl Consultants Private Limited at www.aarthiconsultants.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 bld-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:

Aarthi Consultants Private Limited
1-2-285, Domalguda, Hyderabad - 500029. Tel: +91-40-2763 4446/8111; Fax: +91-40-2763 8111;
Website: www.aarthiconsultants.com Email: smspharrna@aarthiconsultants.com;
Contact Parson: Mr. G Bhasker

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY 8HARE ON LISTING OR THE BUSINESS PROSPECTS OF SMS PHARMACEUTICALS LIMITED.