Basis Of Allotment

(The Company was incorporated on September 26, 1988 as a private limited company under the Companies Act. For details of changes in name and registered office, please refer to "History and Certain Corporate Matters" beginning on page 87 of the Prospectus)
Registered Office: Punj Lloyd House, 17-18 Nehru Place, New Delhi 110 019, India. Tel: +91 11 2620 0123; Fax +91 11 2620 0111. Contact Person: Mr. Dlnesh Thairani; Tel: +91 11 2620 0492. E-mail: ipo@punjlloyd.com;
Website: www.punjlloyd.com

PUBLIC ISSUE OF 9,172,937 EQUITY SHARES OF RS.10 EACH OF PUNJ LLOYD LIMITED ("PUNJ LLOYD" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS.700 PER EQUTTY SHARE, AGGREGATING RS.6,421,055.9 THOUSAND, COMPRISING A FRESH ISSUE OF 8,355,174 EQUITY SHARES OF RS.10EACH BY THE COMPANY AND AN OFFER FOR SALE OF 817,763 EQUITY SHARES OF RS.10EACH BY THE SELLING SHAREHOLDERS. THE FRESH ISSUE AND THE OFFER FOR SALE ARE JOINTLY REFERRED TO HEREIN AS THE OFFER (THE "OFFER"). 100,000 EQUITY SHARES OF RS.10EACH WILL BE RESERVED IN THE OFFER FOR SUBSCRIPTION BY PERMANENT EMPLOYEES AND DIRECTORS OF THE COMPANY WHO ARE INDIAN NATIONALS AND ARE BASED IN INDIA (THE "EMPLOYEE RESERVATION PORTION", AND THE OFFER OF EQUITY SHARES OTHER THAN THE EMPLOYEE RESERVATION PORTION, THE "NET OFFER"). THE OFFER SHALL CONSTITUTE 17.57% OF THE FULLY DILUTED POST OFFER PAID-UP EQUITY CAPITAL OF THE COMPANY.

THE OFFER PRICE IS Rs. 700 PER EQUITY SHARE. THE OFFER PRICE IS 70 TIMES THE FACE VALUE OF THE EQUITY SHARES.

The Offer, made through the 100% Book Building Process wherein at least 60% of the Net Offer was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs"). 5% of the QIB portion was to be available for allocation to Mutual Funds only and the remaining QIB portion was to be available for allocation to all QIBs, including Mutual Funds. Further, up to 10% of the Net Offer was to be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the Net Offer was to be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Offer Price. Further, 100,000 Equity Shares were to be available for allocation to Employees, subject to valid Bids being received at or above the Offer Price.

The Offer received 360,074 applications for 354,863,783 Equity Shares resulting in 38.68 times subscription. The details of the applications received in the Offer from Qualified Institutional Buyers, Non-Institutional Investors, Retail Individual Investors and Employee categories are as under:

Final Demand
A sample of the final demand at different bid prices is as under

Bid Price	No. of Equity Shares	% to Total	Cumulative Total	Cumulative % to Total
600	64280	0.02	358182730	100.00
601	30	0.00	358118450	99.98
602	30	0.00	358118420	99.98
605	80	0.00	358118390	99.98
610	3720	0.00	358118300	99.98
611	50	0.00	358114580	99.98
612	1710	0.00	358114530	99.98
613	30	0.00	358112820	99.98
615	90	0.00	358112790	99.98
620	2230	0.00	358112660	99.98
624	1350	0.00	358110400	99.98
625	7550	0.00	358109050	99.98
626	40	0.00	358101500	99.98
630	400	0.00	358101460	99.98
635	130	0.00	358101050	99.98
636	20	0.00	358100920	99.98
640	300	0.00	358100890	99.98
645	300	0.00	358100590	99.98
646	170	0.00	358100290	99.98
650	122380	0.03	358100110	99.98
651	110	0.00	357977730	99.94
652	110	0.00	357977620	99.94
653	1130	0.00	357977510	99.94
655	80	0.00	357976380	99.94
656	120	0.00	357976300	99.94
660	21750	0.01	357976170	99.94
663	50	0.00	357954410	99.94
665	1340	0.00	357954360	99.94
666	4300	0.00	357953020	99.94
670	5530	0.00	357948720	99.93
674	90	0.00	357943190	99.93
675	260200	0.07	357943100	99.93
676	90	0.00	357682900	99.86
677	100	0.00	357682810	99.86
680	26230	0.01	357682700	99.86
683	60	0.00	357656450	99.85
685	490	0.00	357656390	99.85
690	4720	0.00	357655890	99.85
695	180	0.00	357651170	99.85
700 & Cut Off	357650990	99.85	357650990	99.85
	958102730	100.00

The Basis of Allocatibn was finalized in consultation with Bombay Stock Exchange Limited ("BSE") on December 29, 2005.

A. Allocation to Employees
The Basis of Allocation to the Employees category, who have bid at cut-off or at and above the Offer Price of Rs.700 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 0.78 times. Hence FULL and FIRM allotments have been made against all valid applications. The total number of Equity Shares allotted in this category is 78,500 Equity Shares. The spill over portion of 21,500 Equity Shares has been added to Retail Individual Investors and Non Institutional Investors categories in the ratio of 50:50.

B. Allocation to Retail Investors
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at and above the Offer Price of Rs.700 per Equity Share, was - finalized in consultation with BSE. The category was over subscribed 9.18 times. The total number of Equity Shares allotted in this category is 2,732,631 Equity Shares. 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 Investors, who have bid at and above the Offer Price of Rs.700 per Equity Share, was finalized in consultation with BSE. The category was subscribed 62.38 times. The total number of Equity Shares allotted in this category is 918,043 Equity Shares. The category-wise details of the Basis of Allocation are as under:

D. Allocation to QIBs
Allocation to QIBs have been on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the QIB portion (272,188 Equity Shares) and the remaining QIB portion (5,171,575 Equity Shares) was allocated to all QIBs, including Mutual Funds.

The IPO Committee of the Board (of the company) at its meeting held at Hyderabad on December 29, 2005 has approved the basis of allocation of Equity Shares in the Offer and has approved the allotment/transfer of Equity Shares to 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 overprinted with the Bank Mandate details as registered, if any, with the depositories. The Equity 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 Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE : The details of the allocation would also be hosted on the website of Registrars to the Offer, Karvy Computershare Private Limited at www.karvy.com or http://kcpl.karvy.com
All future correspondence in this regard may kindly be addressed to the Registrars to the Offer 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:

Karvy Computershare Private Limited: Unit: PUNJ LLOYD, Karvy House, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500034, Fax: 040-23311968 Email: punjlloyd.ipo@karvy.com or mailmanager@karvy.com

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 PUNJ LLOYD LIMITED.