SCHEDULE - 18 - ILLUSTRATION EXPLAINING THE PROCEDURE OF ALLOTMENT - SEBI (Disclosure and Investor Protection Guidelines) 2000

1 (SCHEDULE XVIII) [Clause 7.6.1.1 and Clause 11.3.5(iii)] ILLUSTRATION EXPLAINING THE PROCEDURE OF ALLOTMENT 1. Total shares on offer@ 600 per share: 10 crore shares 2. Shares on offer for retail category: 2.5 crore shares 3. The total issue is over subscribed 4 times whereas the retail category is over subscribed 8.25 times 4. Issuer decides to fix the minimum application / bid size as 9 shares (falling within the range of 5000- 7000). Application can be made for a minimum of 9 shares and in multiples thereof. Assume three retail investors A, B C. A has applied for 81 shares. B has applied for 72 shares and C has applied for 45 shares. As per allotment procedure, the allotment to retail individual investors would be on proportionate basis i.e., at 1/8.25th of the total number of shares applied for. The actual entitlement shall be as follows: Sr. No. Name of Investor Total Number of shares applied for Total number of shares eligible to be allotted (No. of shares applied for / 8.25) 1 A 81 81/8.25 = 9.82 shares rounded off to 10 shares 2 B 72 72/8.25 = 8.73 shares rounded off to 9 shares (i.e. minimum application size). 3 C 45 shares 45/8.25=5.45 shares. Application liable to be rejected. (as the entitlement is less than the minimum application size). However, the successful applicants out of the total applicants shall be determined by drawal of lots. *********** 1 Substituted vide SEBI Circular No. SEBI/CFD/DIL/DIP/13/2004/28/5 dated May 28, 2004 for the following: (Clause 7.6.1.1.(c)) BASIS OF ALLOTMENT PROCEDURE Size of public offer - 2,00,000 equity shares of 10/- each . No. of times oversubscribed - 3 times. Total Number of shares applied for - 6,00,000 equity shares. Sr. No. No. of Shares applied for category (Categorywise) No. of applicants Total No. Of shares applied by each applicant (2x3) Proportionate allocation to each Category (One-third) No. of Shares Allotted Per application by rounding off No. of successful applicants Total No. of shares allotted (6x7) (1) (2) (3) (4) (5) (6) (7) (8) 1. 100 1,500 1,50,000 50,000 100 500 50,000 +9,900* + 99* + 9,900 2. 200 400 80,000 26,700 100 267 26,700 3. 300 300 90,000 30,000 100 300 30,000 4. 400 300 1,20,000 40,000 100 300 30,000 5. 500 200 1,00,000 33,300 200 167# 33,400 + 100 # 6. 600 100 60,000 20,000 200 100 20,000 6,00,000 2,00,000 2,00,000 Notes: A) In the above example the number of shares allocable to each category of the applicants have been arrived at in column no. 5 in proportion to the number of times the issue has been oversubscribed. B) In the case of category number 4, the number of shares actually allotted is less than the number of shares available for allotment in that category on proportionate basis. This surplus has been included in the category 1 i.e. The applicants who had applied for minimum number of shares (after making adjustments for exceptional situations as in (c) below. C) The adjustment is on account of rounding off the number of successful applicants in category 5 from 166.5 to167. D) In the case of applicants in categories 1 and 2 who have applied for 100 and 200 shares respectively, the applicants in each of the above categories shall be entitled to 33 and 66 equity shares respectively which have been rounded off to marketable lots of 100 each. As a result the successful applicants shall be getting 100 shares. In the case of applicants in category 3,4, 5 and 6 they should be respectively entitled to allotment of 100, 133, 166 and 200 equity shares respectively. However, the actual entitlement would be rounded off to 100 shares each for categories 3 and 4 and 200 shares for categories 5 and 6 respectively.