Basis of Allotment

un oudooimdc iu ocouki I ics

HINDUSTAN AERONAUTICS LIMITED

Our Company was incorporated on August 16,1963 as Aeronautics India Limited, a private limited company under the Companies Act, 1956. Subsequently, Hindustan Aircraft Limited, a company incorporated on December 23, 1940 under the Companies Act, 1913 was merged with our Company, pursuant to the Aircraft Companies Amalgamation Order dated September 28,1964 passed by the Company Law Board. The name of our Company was changed to Hindustan Aeronautics Limited, by a certificate of change of name issued by the Registrar of Companies, Maharashtra dated December 5,1964 with effect from October 1, 1964. The status of our Company was changed to public company by a special resolution of the members of our Company passed at the Extra Ordinary General Meeting held on July 10,1995. For further details relating to incorporation, corporate structure, change in registered office of our Company, please refer to the chapter "History and Certain Corporate Matters" beginning on page 171 of the Prospectus dated March 21,2018 ("Prospectus").

Registered and Corporate Office: 15/1 Cubbon Road, Bengaluru 560 001, Karnataka, India; Tel No: +91 (80) 2232 0001; Fax No: +91 (80) 2232 0758
Company Secretary and Compliance Officer: Mr. G. V. Sesha Reddy, Company Secretary and Compliance Officer; Tel No: +91 (80) 2232 0001; Fax No: +91 (80) 2232 0758;
E-mail: investors@hal-india.com ; Website: www.hal-india.com
Corporate Identity Number: U35301KA1963GOI001622

PROMOTER OF OUR COMPANY: THE PRESIDENT OF INDIA, ACTING THROUGH THE DEPARTMENT OF DEFENCE PRODUCTION, MINISTRY OF DEFENCE.

Our Company has filed the Prospectus dated March 21, 2018 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 March 28, 2018.

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 34,107,525 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ("EQUITY SHARES") OF HINDUSTAN AERONAUTICS LIMITED (OUR "COMPANY" OR THE "ISSUER") THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE DEPARTMENT OF DEFENCE PRODUCTION, MINISTRY OF DEFENCE, GOVERNMENT OF INDIA (THE "SELLING SHAREHOLDER"), FOR CASH AT A PRICE OF RS 1,215 PER EQUITY SHARE (THE "OFFER PRICE"), AGGREGATING TO RS 41,131.33 MILLION (THE "OFFER") THE OFFER SHALL CONSTITUTE 10.20% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY. THE OFFER COMPRISES OF A NET OFFER OF 33,438,750 EQUITY SHARES AND AN EMPLOYEE RESERVATION PORTION OF UP TO 668,775 EQUITY SHARES. THE OFFER AND THE NET OFFER SHALL CONSTITUTE 10.20% AND 10%, RESPECTIVELY OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE FACE VALUE OF THE EQUITY SHARES IS RS 10 EACH. THE OFFER PRICE IS 121.5 TIMES THE FACE VALUE OF THE EQUITY SHARES.

*A discount of  Rs 25 per Equtiy Share on the OfferPrice was offered to Retail Individual Bidders ("Retail Discount") and to Eligible Employees Bidding in the Employee Reservation Portion ("Employee Discount").

Offer Price: Rs 1,215 per Equity Share of face value of Rs 10 each | The Offer Price is 121.5 times the face value.
Retail Discount and Employee Discount: Rs 25 per Equity Share on Offer Price.

RISKS TO INVESTORS

(i) The two Book Running Lead Managers associated with the Issue have handled 44 public issues in the past 3 years, out of which 14 issues closed below the issue/offer price on listing date.
(ii) There are no listed companies in India that engage in a business similar to that of the Company. Hence, industry comparison in relation to the Company is not applicable.
(iii) The average cost of acquisition of Equity Shares by our Promoter is Rs (152) per Equity Share (after considering the impact of buy-back of Equity Shares in March, 2016 and November, 2017). The Offer Price at the lower end of the Price Band was Rs 1,215 per Equity Share and at the upper end of the Price Band was Rs 1,240 per share.

BID/OFFER PROGRAMME

OPENED ON MARCH 16, 2018 | CLOSED ON MARCH 20, 2018

The Offer was made in terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended ("SCRR"),wherein at least 10% of the post-Offer paid-up Equity Share capital of our Company was offered to the public. The Offer was made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended ("SEBI ICDR Regulations"), wherein 50% of the Net Offer was available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIB Portion"). Such number of Offered Shares representing 5% of the QIB Portion was available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion was available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Offered Shares was made available for allocation in the Mutual Fund Portion will be added to the remained QIB Portion for proportionate allocation to QIBs. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer was available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, up to 668,775 additional Equity Shares was offered for allocation and Allotment on a proportionate basis to the Eligible Employees Bidding in the Employee Reservation Portion, conditional upon valid Bids being received from them at or above the Offer Price. All Bidders were required to participate in the Offer mandatorily through the Applications Supported by Blocked Amount ("ASBA") process by providing the details of their respective ASBA Accounts in which the corresponding Bid Amount was blocked by the SCSBs. For details, see "OfferProcedure" on page 705 of the Prospectus.

The Offer received 1,99,916 applications for 33,642,996 Equity Shares (prior to technical rejections) resulting in 0.99 times subscription. The details of the applications received in the Offer from various categories are as under (prior to technical rejections):

SI. No. Category No. of
Applications
No. of Equity
Shares applied
Shares Reserved
as per Prospectus
No.of
times Subscribed
Amount(Rs)
A Retail Individual Bidders 197,209 4,364,268 11,703,563 0.37 5,306,312,366.00
B Non Institutional Bidders 259 178,188 5,015,813 0.04 220,713,696.00
C Employee Investors 2,431 86,556 668,775 0.13 105,486,666.00
D Qualified Institutional Bidders 17 29,013,984 16,719,374 1.74 35,966,465,520.00
Total 199,916 33,642,996 34,107,525 0.99 41,598,978,248.00

Final Demand
A summary of the final demand as at different Bid prices is as under:

SI.No. BID
PRICE
BIDS
QUANTITY
(%) TO
TOTAL
Cumulative
Total
% Cumulative
Total
1 1215 379,968 1.12 379,968 1.12
2 1216 2,640 0.01 382,608 1.13
3 1217 1,380 0.00 383,988 1.13
4 1218 840 0.00 384,828 1.14
5 1219 408 0.00 385,236 1.14
6 1220 17,352 0.05 402,588 1.19
7 1221 600 0.00 403,188 1,19
8 1222 432 0.00 403,620 1.19
9 1223 408 0.00 404,028 1.19
10 1224 396 0.00 404,424 1.19
11 1225 261,012 0.77 665,436 1.97
12 1226 192 0.00 665,628 1.97
13 1227 864 0.00 666,492 1.97
14 1228 1,656 0.00 668,148 1.97
15 1229 168 0.00 668,316 1.97
16 1230 18,924 0.06 687,240 2.03
17 1231 708 0.00 687,948 2.03
18 1232 468 0.00 688,416 2.03
19 1233 720 0.00 689,136 2.04
20 1234 312 0.00 689,448 2.04
21 1235 9,012 0.03 698,460 2.06
22 1236 840 0.00 699,300 2.07
23 1237 804 0.00 700,104 2.07
24 1238 4,620 0.01 704,724 2.08
25 1239 5,088 0.02 709,812 2.10
26 1240 29,278,428 86.49 29,988,240 88.59
27 CUTOFF 3,863,676 11.41 33,851,916 100.00
TOTAL 33,851,916 100.00

The Basis Of Allotment was finalized in consultation with the Designated Stock Exchange, being BSEon March 23,2018.

A. Allotment to Retail Individual Investors (AfterTechnical Rejections)

The Basis of Allotment to the Retail Individual Investors, who have bid at the Cut-Off Price or at or above the Offer Price of Rs 1,215/-per Equity Share (retail discount of Rs 25/- per Equity Shares has been offered to the Retail Individual Investors), was finalized in consultation with the BSE. This category has been subscribed to the extent of 0.358429 times. The total number of Equity Shares Allotted in Retail Portion is 4,269,012 Equity Shares to193,054successful Retail Individual Investors. The category-wise details of the Basis of Allotment are as under:

Category No. of
Applications
Received
% of
Total
Total No. of
Equity
Shares applied
% to
Total
No. of Equity
Shares allotted
per applicant
Ratio Total No.
of Equity
Shares allotted
12 150,997 78.21 1,811,964 42.44 12 1:1 1,811,964
24 17,953 9.30 430,872 10.09 24 1:1 430,872
36 6,009 3.11 216,324 5.07 36 1:1 216,324
48 3,636 1.88 174,528 4.09 48 1:1 174,528
60 2,859 1.48 171,540 4 02 60 1:1 171,540
72 1,324 0.69 95,328 2.23 72 1:1 95,328
84 1,305 0.68 109,620 2.57 84 1:1 109,620
96 962 0.50 92,352 2.16 96 1:1 92,352
108 548 0.28 59,184 1.39 108 1:1 59,184
120 1,342 0.70 161,040 3.77 120 1:1 161,040
132 134 0.07 17,688 0.41 132 1:1 17,688
144 447 0.23 64,368 1.51 144 1:1 64,368
156 5,515 2.86 860,340 20.15 156 1:1 860,340
168 23 0.01 3,864 0.09 168 1:1 3,864
TOTAL 193,054 100.00 4,269,012 100.00 4,269,012

Unsubscribed portion of 7,641,314 Equity shares spilled over to QlBCategory

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

The Basis of Allotment to the Non-Institutional Investors, who have bid at the Offer Price of Rs 1,215/- per Equity Share or above, was finalized in consultation with the BSE. The Non-Institutional Portion has been subscribed to the extent of 0.033559 times. The total number of Equity Shares Allotted in this category is 171,300 Equity Shares to 252 successful Non-Institutional Investors.

The category-wise details of the Basis of Allotmentare as under:

Category No. of
Applications
Received
% of
Total
Total No.
of Equity
Shares applied
% to
Total
No. of
Equity Shares
allotted per
applicant
Ratio Total No.
of Equity
Shares allotted
168 63 25.00 10,584 6.18 168 1:1 10,584
180 21 8.33 3,780 2.21 180 1:1 3,780
192 6 2.38 1,152 0.67 192 1:1 1,152
204 8 3.17 1,632 0.95 204 1:1 1,632
216 5 1.98 1,080 0.63 216 1:1 1,080
240 27 10.71 6,480 3.78 240 1:1 6,480
252 2 0.79 504 0.29 252 1:1 504
288 1 0.40 288 0.17 288 1:1 288
300 6 2.38 1,800 1.05 300 1:1 1,800
324 3 1.19 972 0.57 324 1:1 972
360 7 2.78 2,520 1.47 360 1:1 2,520
372 1 0.40 372 0.22 372 1:1 372
396 16 6.35 6,336 3.70 396 1:1 6,336
408 5 1.98 2,040 1.19 408 1:1 2,040
420 5 1.98 2,100 1.23 420. .1:1 2,100
468 1 0.40 468 0.27 468 1:1 468
480 8 3.17 3,840 2.24 480 1:1 3,840
492 2 0.79 984 0.57 492 1:1 984
Category No. of
Applications
Received
% of
Total
Total No.
of Equity
Shares applied
% to
Total
No. of
Equity Shares
allotted per
applicant
Ratio Total No.
of Equity
Shares allotted
516 1 0.40 516 0.30 516 1:1 516
540 1 0.40 540 0.32 540 1:1 540
552 1 0.40 552 0.32 552 1:1 552
600 9 3.57 5,400 3.15 600 1:1 5,400
636 1 0.40 636 0.37 636 1:1 636
648 1 040 648 0.38 648 1:1 648
720 1 0.40 720 0.42 720 1:1 720
756 1 0.40 756 0.44 756 1:1 756
804 10 3.97 8,040 4.69 804 1:1 8,040
816 1 0.40 816 0.48 816 1:1 816
840 2 0.79 1,680 0.98 840 1:1 1,680
852 1 0.40 852 0.50 852 1:1 852
900 1 0.40 900 0.53 900 1:1 900
924 1 0.40 924 0.54 924 1:1 924
960 3 1.19 2,880 1.68 960 1:1 2,880
996 2 0.79 1,992 1.16 996 1:1 1,992
1008 3 1.19 3,024 1.77 1008 1:1 3,024
1020 1 0.40 1,020 0.60 1020 1:1 1,020
1200 3 1.19 3,600 2.10 1200 1:1 3,600
1500 2 0.79 3,000 1.75 1500 1:1 3,000
1608 2 0.79 3,216 1.88 1608 1:1 3,216
1920 1 0.40 1,920 1.12 1920 1:1 1,920
2016 1 0.40 2,016 1.18 2016 1:1 2,016
2100 1 0.40 2,100 1.23 2100 1:1 2,100
2352 1 0.40 2,352 1.37 2352 1:1 2,352
2412 2 0.79 4,824 2.82 2412 1:1 4,824
2496 1 0.40 2,496 1.46 2496 1:1 2,496
3000 1 0.40 3,000 1.75 3000 1:1 3,000
3216 2 0.79 6,432 3.75 3216 1:1 6,432
3996 1 0.40 3,996 2.33 3996 1:1 3,996
4080 1 0.40 4,080 2.38 4080 1:1 4,080
4992 1 0.40 4,992 2.91 4992 1:1 4,992
6048 1 0.40 6,048 3.53 6048 1:1 6,048
7200 2 0.79 14,400 8.41 7200 1:1 14,400
24000 1 0.40 24,000 14.01 24000 1:1 24,000
TOTAL 252 100.00 171,300 100.00 171,300

Unsubscnbed portion of 4,933,126 Equity shares spilled over to QIB Category

C. Allotment to Eligible Employees (After Technical Rejections)

The Basis of Allotment to the Eligible Employees, who have bid at or above the Offer Price of Rs 1,215/- per Equity Share (Employee discount of Rs 25/-per Equity Share has been offered to the Eligible Employees), was finalized in consultation with the BSE. The Eligible Employees Portion has been subscribed to the extent of 0.116667 times. The total number of Equity Shares Allotted in this category is 78,024 Equity Shares to 2,190 successful Bidders. The category-wise details of the Basis of Allotment are as under:

Category No. of
Applications
Received
% of
Total
Total No.
of Equity
Shares applied
% to
Total
No. of
Equity Shares
allotted per
applicant
Ratio Total No.
of Equity
Shares allotted
12 943 43.06 11,316 14.50 12 1:1 11,316
24 574 26.21 13,776 17.66 24 1:1 13,776
36 205 9.36 7.380 9.46 36 1:1 7,380
48 136 6.21 6,528 8.37 48 1:1 6,528
60 79 3.61 4,740 6.08 60 1:1 4,740
72 33 1.51 2,376 3.05 72 1:1 2,376
84 41 1.87 3,444 4.41 84 1:1 3,444
96 37 1.69 3.552 4.55 96 1:1 3,552
108 19 0.87 2,052 2.63 108 1:1 2,052
120 32 1.46 3.840 4.92 120 1:1 3,840
144 9 0.41 1,296 1.66 144 1:1 1,296
156 41 1.87 6.396 8.20 156 1:1 6,396
168 7 0.32 1.176 1.51 168 1:1 1,176
180 4 0.18 720 0.92 180 1:1 720
192 1 0.05 192 0.25 192 1:1 192
204 2 0.09 408 0.52 204 1:1 408
216 2 0.09 432 0.55 216 1:1 432
240 5 0.23 1,200 1.54 240 1:1 1,200
264 1 0.05 264 0.34 264 1:1 264
276 2 0.09 55? 0.71 276 1:1 552
288 1 0.05 288 0.37 288 1:1 288
300 1 0.05 300 0.38 300 1:1 300
324 2 0.09 648 0.83 324 1:1 648
360 2 0.09 720 0.92 360 1:1 720
396 5 0.23 1,980 2.54 396 1:1 1,980
408 6 0.27 2,448 3.14 408 1:1 2,448
TOTAL 2,190 100.00 78,024 100.00 78,024

Unsubscribed portion of 590,751 Equity shares spilled over to QIB Category

D. Allotment to QIBs (After Technical Rejections)

Allotment to QIBs, who have Bid at the Offer Price of Rs 1,215/- per Equity Share or above, has been done on a proportionate basis in consultation with the BSE. This category has been subscribed to the extent of 1.74 times of QIB Portion.As per the SEBI ICDR Regulations, Mutual Funds were Allotted 5 % of the Equity Shares of QIB Portion available i.e. 10,72,548 Equity Shares (including spilled over) and other QIBs, including Mutual Funds were Allotted the remaining available Equity Shares i.e. 27,941,436 Equity Shares (including spilled over) on a proportionate basis. The total number of Equity Shares Allotted in the QIB Portion is 29,013,984 Equity Shares, which were allotted to 17 successful QIB Bidders. The category wise details of the Basis of Allotment are as under:

Category Fls/Banks Fll MFs ICs NBFC Others Total
QIB 2,711,160 - 1,072,548 25,230,276 - - | 29,013,984

Unsubscribed portion of Retail, HNI and Employee Category have been added to QIB Portion to the extent of its subscnption and balance 575,205 were not allotted to any categories, since the overall Offer was undersubscribed.

The Board of Directors of the Company on March 24,2018 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 are being dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Offer Account have been issued on March 23,2018 and payment to non-Syndicate brokers have been issued on March 26, 2018. The Equity Shares Allotted to the successful Allottees have been uploaded on March 26, 2018 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. In case the unblocking of funds or credit of equity shares is not received within six working days, investors may contact the Registrar to the Offer at the address given below. The Company has filed the Listing applications with BSE and NSE on March 26, 2018. The Company has received listing and trading approvals from BSE and NSE and the trading will commence on March 28, 2018. 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 have been hosted on the website of the Registrar to the Offer, Karvy Computershare Private Limited at https://karisma.karvy.com. All future correspondence in this regard may kindly 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 Intermediary 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 of Registrar.

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,Gachibowli, Financial District,
Nanakramguda Hyderabad,Telangana 500032, India
Tel: +91 (40) 67162222, Fax: +91 (40) 2343 1551, Email: hal.ipo@karvy.com
Investor Grievance Email: einward.ris@karvy.com
Website: https://karisma.karvy.com
Contact Person: Mr. M Murali Krishna
SEBI Registration No: INR000000221

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF HINDUSTAN AERONAUTICS LIMITED.

Date: March 27, 2018
Place: Bengaluru
For Hindustan Aeronautics Limited
On behalf of Board of Directors
Sd/-
Company Secretary and Compliance Officer
Close