RATHI UDYOG LIMITED

Incorporated as Rathi Udyog Limited, on December 17,1971 under the Companies Act, 1956.
Registered Office:1/3, Khirki Village, Malviya Nagar, New Delhi-110 017.
Tel No: 011-39461949; Fax No: 011-29541214; WebSite: www.rathiudyog.in; Email: investors@rathiudyog.in;
Contact person: Mr. Gaurav Jain, Company Secretary & Compliance Officer

BASIS OF ALLOTMENT

Public Issue of 1,96,00,000 Equity Shares through 100% Book Building Process of face value of Ps. 10 each for cash at a premium of Rs. 40 per Equity Share at a price of Rs. 50 per Equity share„ aggregating Rs. 9800 lacs ("the Issue"). The Issue comprises of promoter's contribution of 80,00,000 Equity Shares aggregating Rs.4,000 lacs ("Promoter's Contribution") and the Net Issue to the Public of 1,16,00,000 Equity Shares aggregating Rs. 5,800 lacs ("Net Issue"). The Issue would constitute 80.63% of the fully diluted post issue paid-up capital of Rathi Udyog Ltd.
The Issue received 10,043 applications for 1,41,80,375 Equity Shares resulting in 1.22 times subscription
The Basis of Allotment of Public Issue was approved by Bombay Stock Exchange Limited (Designated Stock Exchange) on June 5, 2006. The Board of Directors of the Company at its Meeting held at Ghaziabad on June 5, 2006 allotted the Equity Shares to the successful applicants. Details of valid applications received and allotments done are as under:

PUBLIC ISSUE
The details of valid applications received in the Issue from Retail Category, Corporates / Institutions (Non Retail Category) and QIBs are as under:

A. Allotment to Retail Investors
The total number of Equity Shares allotted in this category are 40,60,002 Equity Shares (35% of total Equity Shares allotted). The categorywise details of allotment are given below.

All the applicants who have applied for 200 Equity Shares or more have been given firm allotment on proportionate basis inverse to the oversubscription ratio.

B. Allotment to Non Retail Category (Individual/Corporate/Institutions who have bid for an amount more than Rs.1,00,000/-)
The total number of Equity Shares allotted in this category are 17,39,998 Equity Shares (15 % of total Equity Shares allotted).
All the applicants in this category have been given firm allotment on proportionate basis inverse to the oversubscription ratio.

C. Allotment to Qualified Institutional Buyers (QIBs)
The total number of Equity Shares allotted in this category are 58,00,000 Equity Shares (50% of total Equity Shares allotted). All the applicants in this category have been given Firm Allotment on a PROPORTIONATE BASIS. Out of 58,00,000 Equity Shares offered to QIBs as per the terms of the issue, 2,90,000 Equity Shares (i.e 5% of 58,00,000 Equity Shares) has been allotted proportionately to mutual funds. Mutual funds applicants have also been considered eligible for proportionate allotment for the balance Equity shares in QIBs category i.e 55,10,000.

Refunds have been made through ECS, into the Bank Accounts of the applicants, as registered wtth the depositories, for applicants residing at any of the 15 centres specified by SEBI. For other applicants Refund Orders have been despatched to their address as registered with the depositories. In case the same is not received within ten days, applicants may contact at the address given below. ECS Intimation Note and Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants have been credited to their beneficiary accounts.

INVESTORS PLEASE NOTE

The details of allotments made, have been 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 Registrars to the issue quoting full name of the First/ Sole applicant, Serial No. of the Bid-cum-Application form, number of Equity Shares applied for and the name of the Bank branch where the application was lodged at the following address given below:

Intime Spectrum Registry Limited,
C-13 Pannalal Silk Mills Compound, L B S Marg, Bhandup (W), Mumbai 400 078;
Tel: 91-22- 25960320 (9 lines); Fax: 91-22- 25960329; Contact Person: Mr. Vishwas Attawar;
Website: www.intimespectrum.com; E-mail: rathiudyog@intimespectrum.com;