Tejas Networks IPO Basis of Allotment

TEJAS NETWORKS LIMITED

Our Company was originally incorporated as Tejas Networks India. Private Limited on April 24.2000 at Bengaluru, Karnataka, India, as a private limited company under the Companies Ad 1956. Subsequently. our Company was converted into a public limited company and its name was changed to Tejas Networks India Limited and a fresh certificate of incorporation consequent upon change of name was issued by the Registrar of. Companies, Karnataka ('RoC') on October 23, 2002. Thereafter, the name of our Company was changed to Tejas Networks Limited and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on March 18. 2008. For details in relation to the change in the name and Registered Office of our Company, see 'History and Certain Corporate Matters' on page 165 of the Prospectus dated June 21,2017 (the 'Prospectus').

Registered and Corporate Office: J. P. Software Park, Plot No. 25. Sy. No. 13,14, 17 and 18. Konnapana Agrahara Village, Begur Hobli.Bengaluru 560 100, Karnataka, India,Contact Person: Krishnakanth G. V., Company Secretary and Compliance Officer; Tel: +91 80 4179 4600 .Fax: +91 80 2852; 0201
E-mail: corporate@tejasnetworks.com: Website.www.tejasnetworks.com; Corporate Identity Number: U72900KA2000PLC026980.

Our Company is a professionally managed company and does not have an identifiable promoter either in terms of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended ('SEBIICDR Regulations'), or in terms of the Companies Act, 2013.
Our Company has filed the Prospectus dated June 21,2017 with the RoC and the Equity Shares are proposed to be listed on the BSE Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') and the trading will commence on or about June 27.2017.

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 30.221,332 EQUITY SHARES OF FACE VALUEOF RS10 EACH ('EQUITY SHARES') OF TEJAS NETWORKS LIMITED ('COMPANY' OR 'IS5UER') FOR CASH AT A PRICE OF RS 257 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 247 PER EQUITY SHARE) (THE 'OFFER PRICE'} AGGREGATING TO RS 7.766.88 MILLION ('OFFER') COMPRISING A FRESH ISSUE OF 17,509,727 EQUITY SHARES AGGREGATING TO RS 4.500 MILLION ('FRESH ISSUE') AND AN OFFER FOR SALE OF 12.711.605 EQUITY SHARES BY THE SELLING SHAREHOLDERS (AS DEFINED HEREUNDER). AGGREGATING TO RS 3,266.88 MILLION ('OFFER FOR SALE'). THE OFFER SHALL CONSTITUTE 32.56% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

OFFER PRICE: RS 257 PER EQUITY SHARE OF FACE VALUE OF RS10 EACH
ANCHOR INVESTOR OFFER PRICE: RS 257 PER EQUITY SHARE
THE OFFER PRICE IS 25.7 TIMES THE FACE VALUE

Risks to Investors:

i.The 4 Merchant Bankers associated with the Offer have handled 32 public issues in the past three years out of which 7 issues closed below the issue price on listing date.
ii. There are no listed peers.
iii. The Price/ Earnings ratio based on basic and diluted EPS of Rs 7.92 and Rs 9.40 for the Issuer in the Fiscal 2017 at the upper end of the Price band Is as high as 32.45 and 27,34 respectively, as compared to S&P BSE SENSEX index Price/Earnings ratio of 22.65(as on June 5,2017).
iv. The average cost of acquisition per Equity Share of selling shareholders i.e. Cascade Capital Management Mauritius is Rs 67.44 (Equity Shares acquired during FY 2004-05 to 2015-16). India Industrial Growth Fund Limited is Rs114.04 (Equity Shares acquired during FY 2009-10 to 2015-16), Intel Capital (Cayman) Corporation is Rs 40.39 (Equity Shares acquired during FY 2001-02 to 2007-08), Sandstone Private Investments is Rs 103.63 (Equity Shares acquired during FY2006-07 & 2007-08), Osher LP is Rs 86.29 (Equity Shares acquired during FY2012-13 to 2016-17) and of Mr. Sanjay Nayak. our MD 8, CEO is Rs 24.42 (Equity Shares acquired during FY 2000-01 to 2017-18).

BID/ OFFER PERIOD: OPENED ON: WEDNESDAY JUNE 14, 2017
CLOSED ON FRIDAY, JUNE 16, 2017
ANCHOR INVESTOR BIDDING DATE: TUESDAY, JUNE 13, 2017

In terms of Rute 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957. as amended ('SCRR') and in accordance with Regulation 26(2) of the SEBI ICDR Regulations. tha Offer was made through the Book Building Process, wherein at least 75% of the Offer was allocated on a propionate basis to Qualified Institutional Buyers ('QIBs') and Our Company, in consultation with the BRLMs, allocated up to 60% of the QlB Portion to Anchor Investors on a discretionary basis ('Anchor Investor Portion') at the Anchor Investor Allocation Price. One-third of the Anchor Investor Portion was reserved for domestic Mutual Funds only, subject to valid Bids- being received from domestic Muiual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations. 5% of the Net QIB Portion was available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion was available for allocation on a proportionate basis to all QIB Bidders (other then Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price Further, not more than 15% of the Offer was available for allocation on a proportionate basis to Non-lnstitutional Bidders and not more than 10% of the Offer was available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential investors, other than Anchor Investors, were required to mandatorily utilise the Application Supported by Blocked Amount ('ASBA') process providing details of their respective bank accounts which will be blocked by the SCSBs to participate in the Offer. Anchor Investors, were not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see 'Offer Procedure' on page 391 of the Prospectus.
The Offer received 122,477 applications for 44,766,810 Equity Shares (prior to technical rejections) resulting In 1.4813 times subscription. 'the details of the appfcalions received in the Offer from various categories are as under (before technical rejections):

Final Demand

Asummary of the final demand as per the BSE and the NSE as on the Bid/Offer Closimg Date at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the BSE on June 22,2017.

A. Allotment to Retail Individual Bidders (after technical rejections) (Including ASBA Applications)

The Basis of Allotment to the Retail Individual Bidders, who have bid at the Cut-Off Price or at the Offer Price of Rs 257 per Equity Share, was finalized in consultation with the BSE. This category has been subscribed to the extent of 2.5590 times. The total number of Equity Shares Allotted in Retail Portion is 3,451,953 Equity Shares (includes under subscribes portion of 429. 820 Equity Shares spilled over from Non Institutional Investors Category) to 62,762 successful Retail Individual Bidders. The category-wise details of the Basis of Allotment are as under:

B. Allotment to Non-Institutional Bidders (After Technical Rejections)

The Basis of Allotment to the Non-institutional Bidders, who have bid at the Offer Price of Rs 257 per Equity Share, was finalized in consultation with the BSE. The Non-lnstitutional Portion has been subscribed to the extent of 0.1941 times. The total number of Equity Shares Allotted in this category is 879,725 Equity Shares to 106 successful Non- Institutional Bidders (the under subscription of 3.653,474 Equity Snares in the Non-Institutional Bidders category has been spilled over to Qualified Institutional Buyers and Retail Individual Investors Category in the ratio of 75:10 i e. 3,223.654 Equity Shares to Qualified Institutional Buyers and 429,820 Equity Shares to Retail Individual Investors Category). The category-wise details of the Basis of Allotment are as under:

C. Allotment to QIBs

Allotment to QIBs. who have Bid at the Offer Price of Rs 257 per Equity Share, has been done on a proportionate basis in consultation with the BSE. This category has been subscribed to the extent of 16608 times of Net QIB Portion. As per the SEBI Regulations. Mutual Funds were Allotted up to 5% of the Equity Shares of Net OIB Portion available i.e. 539.435 Equity Shares (includes 136,115 Equity Shares out of the under subscribed portion of 161,183 Equity Shares spilled over from Non institutional Investors Category). The remaining under subscribed portion of 25,063 Equity Shares in the QIB (Mutual Funds) category has been spilled over to Qualified Institutional Buyers (balance of MF and other QIBs). Accordingly, the other QIBs were Allotted the remaining available Equity Shares i.e. 11,700,619 Equity Shares (includes under subscribed portion of 25,063 Equily Shares spilled over from QIB (Mutual Funds) category and also includes under subcscribed portion of 3,062.471 Equity Shares spilled over from Non Institutional Investors Category) on a proportionate basis. The total number of Equity Shares Allotted in the QIB Portion is 12.290.054 Equity Shares, which were allotted to 24 successful QIB Bidders. The category-wise details of the Basis of the Allotment are as under:

D. Allotment to Anchor Investors

The Company in consulation with the BRLMs, have allocated 13,599,600 Equity Shares to 17 Anchor Investors (through 18 Applications) at the Anchor Investor Offer Price of Rs 257 per Equity Share in accordance with the SEBI Regulations. This represents 60% of the QIB Portion.

The IPO Committee of our Company on June 22,2017 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum-intimations and/or notices will be dispatched to the address of the Investors as registered with the depositories, further, the instroctions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Offer Account have been issued on June 22.2017 and payment to non-Syndicate brokers have been issued on June 23. 2017. In case the same is not received within ten  days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares Allotted to the successful Allottees have been uploaded on June 22, 2017 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with BSE and NSE on June 22,2017. The Company has received listing and trading approval from BSE and NSE and the trading will commence on or about June 27.2017.
All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

INVESTORS PLEASE NOTE

The details of the allotment made will be hosted on the website of the Registrar to the Offer. Link Intime India Private Limited at www.linklntime.co.in

All future correspondence in this regard may kindiy be addressed to the Registrar to the Offer quoting full name of the first/sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID. PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for. the name and address of the Designated Intemediary where the Bid cum Application Form was submitted by the Bidder, and a copy of the Acknowledgment Slip received from the Designated intermediary at the address given below:

Link Intime India Private Limited
C-101,1st Floor, 247 Park, L B S Marg, Vikhroli (West), Mumbai 400 083, Maharashtra, India
Tel: +91 22 4913 6200; Fax: +91 22 4918 6195, E-mail: lri.ipo@linkintime.co.in
Investor grievance e-mail: Inl.ipo@linkintime.co.in. Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan. SEBI registration number: INR000004058