Sobha IPO Basis of Allotment

SOBHA DEVELOPERS LIMITED

(The Company was incorporated as Sobha Developers Private Limited on August 7,1995. The Status of the Company was subsequently changed to a public limited company by a special resolution of the members passed of an extraordinary general meeting held on May 8, 2006. The fresh certificate of incorporation consequent on change of name was granted to the Company on June 2, 2006 by the Registrar of Companies, Karnataka Registered Office: E-106, Sunrise Chambers, 22, Ulsoor Road, Bangalore - 560042, India)
(The registered office of the Company was shifted from E-106, Sunrise Chambers, 22, Ulsoor Road, Bangalore- 560042, India to 43, 2n Floor, Dickenson Road, Bangalore-560 042, India with effect from December 31, 2004 by a resolufion of the Board of Directors.)
Company Secretary and Compliance Officer: Mr. K Suresh. Tel: (91 80) 2559 7260, Fax: (91 80) 2559 4138,
Email : investors@sobha.co.in , Website: www.sobhadevelopers.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 8,893,332 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 640 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 630 PER EQUITY SHARE, AGGREGATING RS. 5,691.73 MILLION (THE 'ISSUE') BY SOBHA DEVELOPERS LIMITED (THE 'COMPANY'OR'THE ISSUER'). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 8,004,032 SHARES OF RS. 10 EACH (THE 'NET ISSUE') AND A RESERVATION OF UP TO 889,300 SHARES OF RS. 10 EACH FOR THE PERMANENT EMPLOYEES OF THE COMPANY (THE 'EMPLOYEE RESERVATION PORTION'). THE ISSUE WOULD CONSTITUTE 12.20^% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY THE NET ISSUE WILL CONSTITUTE 10.98% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY

ISSUE PRICE: RS. 640/- PER EQUITY SHARE OF FACE VALUE OF RS. 10 EACH. THE ISSUE PRICE IS 64 TIMES OF 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 at least 60% 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 being  received from them at or above the Issue Price. If at least 60% of the Net Issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, up to 10% of the Net Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% 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. Further, up to 889,300 Equity Shares shall be available for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids being received at or above the Issue Price.

The Issue received 493238 applications for 1013204575 equity shares resulting in 113:9286 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

The final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited('NSE') on December 11, 2006.

A.Allocation to Employees
The Basis of Allocation to the Employees category, who have bid at cut-off or at Issue Price of Rs.640/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 0.99165 times. The total number of shares allotted in this category is 881870 Equity Shares. The unsubscribed portion of 7430 Shares have been added to the Retail Category and Non Institutional Investors in the ratio of 1:1 i,e 3715 Shares each. The category wise details of the Basis of Allocation (sample) are as under.

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.640/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 20.12689 times. The total number of shares allotted in this category is 2408490 Equity Shares (Including 3715 Shares spill over from Employee Category). The category-wise details of the Basis of Allocation are as under:

C.Allocation to Non Institutional Investors

The Basis of Allocation to the Non institutional, who have bid at the Issue Price of Rs. 640/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 189.45564 times. The total number of shares allotted in this category, is 804015 Equity Shares (Including 3715 Shares spill over from Employee Category). The category-wise details of the Basis of Allocation (Sample) are as under:

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, Mutual Funds were initially allotted 5% of the quantum of shores available (240123) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (4562327) on proportionate basis. The sectoral cap and other limits applicable to the holding of shares in company have been taken into account while allotting shares. Mutual Funds were allotted 16.6296% for QIB segment and other QIB applicants were allotted 83.3704% of the shares for QIB segment.

The Board of Directors of the company of its Meeting held at Bangalore on December 12, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

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 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 National Stock Exchange of India Limited and Bombay Stock Exchange Limited within 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, 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 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 LIMITED
Unit: Sobha Developers Limited
C-13 Pannalal Silk Mills Compound, L.B.S. Marg,
Bhandup (West), Mumboi - 400 078
Tel. No.: (91 22) 2596 0320 - 28, Fax. No.: (91 22) 2596 0329
Email : isrl@intimespectrum.com