PATEL ENGINEERING LIMITED

[Our Company was incorporated as "Patel Engineering Company Limited" on April 2,1949 at Mumbai under
The Companies Act 1913 with the Registration No. 7039 of 1949-50. The name of Our Company was changed to
"Patel Engineering Limited" with effect from December 9,1999]
Registered Office: Patel Estate Road, Jogeshwari (West), Mumbai - 400 102. Tel : +91 22 26782916.
Fax: +91 22 26782455
Contact Person: Ms. Shobha Shetty. Email: patelfpo@pateleng.com, Website: www.pateleng.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 9,659,090 EQUITY SHARES OF RE.1/- EACH FOR CASH AT A PRICE OF RS.440/- PER EQUITY SHARE AGGREGATING RS.4,250 MILLION BY PATEL ENGINEERING LIMITED ("THE COMPANY" OR "ISSUER") (THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 9,176,136 EQUITY SHARES OF RE.1/- EACH (THE "NET ISSUE") AGGREGATING RS.4,037.50 MILLION AND A RESERVATION FOR ELIGIBLE SHAREHOLDERS OF UP TO 482,955 EQUITY SHARES EACH AT THE ISSUE PRICE AGGREGATING RS.212.50 MILLION EACH. THE ISSUE WOULD CONSTITUTE 16.20% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY

ISSUE PRICE RS.440/- PER EQUITY SHARE
THE ISSUE PRICE IS 440 TIMES OF THE FACE VALUE

The Issue made through the 100% Book Building Process where up to 50% of the net issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was to specifically be allotted to mutual funds)., Further not less than 15% of the net issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the net issue to the public shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 157721 applications for 280413550 equity shares resulting in 29.0310 times subscription. The details of the applications received in the Issue from Existing Shareholders, Retail Individual Investors, Non-Institutional Investors and Qualified Institutional Buyers categories are as under (Before technical rejections):

Final Demand
The final demand at different bid prices is as under

The Basis of Allocation was finalised in consultation with the Bombay Stock Exchange Limited ("BSE") on 19th May, 2006

A. Allocation to Existing Shareholders
The Basis of Allocation to the Existing Shareholder category, who have bid at cut-offor at and above the Issue Price of Rs.440/- per Equity Share, was finalised in consultation with BSE. The category was subscribed 0.57005 times. The total number of shares allotted in this category is 275310 Equity Shares. The unsubscribed portion of 207645 equity shares was added to the Retail. The category-wise details of the Basis of Allocation (Sample) are as under

B. Allocation to Retail Investors
The Basis of Allocation to the Retail Investors, who have bid at cut-off or at and above the Issue Price of Rs.440/- per Equity Share, was finalised in consultation with BSE. The category was over subscribed 4.79988 times. The total number of shares allotted in this category is 3419299 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 Issue Price of Rs.440/- per Equity Share, was finalised in consultation with BSE. The category was subscribed 6.81975 times. The total number of shares allotted in this category is 1376415 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under

D. Allocation to QIBs
Allocation to QIBs have been done on a proportionate basis in consultation with the Bombay Stock Exchange Limited As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (229404) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (4358662) on proportionate basis. The sectoral cap and other limits applicable to the holding of shares in company have been taken into account while allotting shares. Mutual Funds were allotted 5.00% for QIB segment and other QIB applicants were allotted 95.00% of the shares for QIB segment

The FPO Committee of the Board of Directors of the Company at its Meeting held at Mumbai on 19/5/06 has approved the basis of allocation of shares of the Issue and has allotted the shares to various 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 over-printed with the Bank Mandate details as registered, if any, with the depositories. The 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 made would be hosted on the website of Registrars to the Issue, In time Spectrum Registry Limited at www intimespectrum.com
All future correspondence in this regard may kindly be addressed to the Registrars to the issue quoting full name of the First/ Sole applicant, Serial number of the bid-cumapplication 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:

INTIMESPECTRUM REGISTRY LIMITED
Unit: Patel Engineering Limited
C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai-400 078.
Tel. No.: (9122) 25960320-28, Fax No.: (9122) 2596 0329, E-mail:  patelfpo@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 PATEL ENGINEERING LIMITED.