Gwalior Chemical Industries Limited

(Our Company was incorporated on February 14, 1984 as "Shubham Aromatics Private Limited" and converted into a public limited company "Shubham aromatics Limited" on October 1, 1985. With effect from October 1, 1992, "Gwalior Chemical Private Limited" was amalgamated with our Company and consequently our name was changed to "Gwalior Chemical Industries Limited")
Registered Office: 1 & 2, Western India House, Sir P.M. Road, Fort, Mumbai 400 001, India. Tel: +91-22-2287 3541; Fax: +91-224282 3720. Corporate Office: K.K. Chambers, 4th Floor, Sir Purushottamdas Thakurdas Marg, Fort, Mumbai 400 001, India. Tel: +91-22-66388500; Fax: +91-22-66388620; Contact Person: Mrs. Rural Rathi; Email:ipo@gwaliorchemicals.com; Website: www.gwallorchomicale.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 9876543 EQUITY SHARES OF THE FACE VALUE OF RS. 10/- EACH AT A PRICE OF RS. 81/-PER EQUITY SHARE FOR CASH AGGREGATING RS. 8,000 LAKHS (REFERRED TO AS THE'ISSUE'). THE NET OFFER TO PUBLIC CONSTITUTES 40.02% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF GWALIOR CHEMICAL INDUSTRIES LIMITED('ISSUER' OR 'THE COMPANY').
THE FACE VALUE PER EQUITY SHARE IS RS. 10/- AND THE ISSUE PRICE IS 8.1 TIMES OF THE FACE VALUE
The issue is made through a 100^% Book Building Process, wherein not more than 50% of the Net Issue to the Public was to be allotted on a discretionary basis to Qualified Institutional Buyers ('QIBs'). Further, not less than 15^% of the Net Issue to the Public was available for allotment on a proportionate basis to Non-Institutional Bidders / Investors and not less than 35% of the Net Issue to the Public was available for allotment on a proportionate basis to the Retail Bidders / Investors, subject to valid bids were received within the Price Band.
The Issue received 39,082 applications for 7,20,82,275 Equity Shares resulting In 7.2983 times subscription. The details of the applications received in the Issue from Retail Bidders / Investors, Non-institutional Bidders / Investors, Employees and Qualified Institutional Buyers' categories (before technical rejections) are as under:

(*): Note: Number of times of the respective category.

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

The Basis of Allotment was finalized in consultation with Bombay Stock Exchange Limited ('BSE') on Tuesday, September 26, 2006.

A. Allotment to Retail Investors
The Basis of Allotment to the Retail Investors, who have bid at cut-off or at the Issue Price of Rs. 81/- per Equity Share, was finalized in consultation with BSE. The category was oversubscribed 6.45740 times. The total number of Equity Shares allotted in this category is 34,56,790. The category-wise details of the Basis of Allotment are as under:

B.Allotment to Non-institutional Investors
The Basis of Allotment to the Non-institutional Investors, who have bid at the Issue Price of Rs. 81/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 11.40869 times. The total number of Equity Shares allotted in this category is 14,81,482. The category-wise details of the Basis of Allotment are as under:

C. Allotment to QIBs
The total number of Equity Shares allotted to QIBs is 49,38,271 Equity Shares as follows:

Pursuant to Clause 6.8.3.2 (g) of the SERI (Disclosure and Investor Protection Guidelines), 2000 and method of proportionate basis of allotment in the section Issue Procedure (page no. 221) of the Prospectus dated September 19, 2006, the Company has rounded-off fractional Equity Shares to the nearest one (1) Equity Share.
The IPO Committee of the Company at its Meeting held at Mumbai on September 26, 2006 has approved the basis of allocation of shares and allotted the shares to various successful applicants.
The Refund Orders and allotment advice and notice has been dispatched to the address of investors as registered with the depositories on September 26, 2006. In case the same is not received within ten (10) days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, H any, with the depositories. The Equity Shares allotted to successful applicants are being credited to their respective 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 (7) working days from the date of approval of .the Basis of Allotment.

INVESTORS MAY PLEASE NOTE
These details of allotment made, would be hosted on the website of the Registrar to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com
All future correspondence in this regard may kindly be addressed to the Registrar to the Issue, Intime Spectrum Registry Limited, quoting full name of the First / Sole Applicant, Serial Number of the Bid-Cum-Application Form, Number of Equity Shares bid for, Name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

INTIME SPECTRUM REGISTRY LIMITED
Unit : Gwalior Chemical Industries Limited
C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai - 400 078
Telephone No.: +91 - 22 - 2596 0320 - 28; Fax No.: +91 - 22 - 2596 0329;
Email: ipo@intimespectrum.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF GWALIOR CHEMICAL INDUSTRIES LIMITED.