|Basis of Allotment|
|(This is only an
advertisement for information purposes and not a prospectus announcement. Not for Release
in the United States.)
TECHNOFAB ENGINEERING LIMITED
Our Company was incorporated on July 20, 1971 in New Delhi as Technofab
Engineering Private Limited under the Companies Act, 1956 with the Registrar of
Companies.National Capital Territory of Delhi and Haryana ("RoC"). Our Company
became a deemed public limited company in terms of Section 43A (1A) of tie Companies Act,
1956 with effect from January 4,1989. Our Company became a public limited company pursuant
to the enactment of the Companies (Amendment) Act, 2000 and a special resolution passed by
our Company on June 24,2002. The RoC accordingly altered the Certificate of Incorporation
to that effect on May 7,2003.
BASIS OF ALLOTMENT
PUBLIC ISSUE OF 29,90,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH OF TECHNOFAB
ENGINEERING LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH AT A
PRICE OF RS. 240* PER EQUITY SHARE AGGREGATING RS. 7,166.24* LAKHS (THE
"ISSUE"). THE ISSUE COMPRISES OF A RESERVATION OF 50,000 EQUITY SHARES OF RS. 10
EACH FOR ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION") FOR CASH AT A
PRICE OF RS. 220* PER EQUITY SHARE AGGREGATING RS. 107.36 LAKHS AND A NET ISSUE TO THE
PUBLIC OF 29,40,000 EQUITY SHARES OF RS. 10 EACH (THE "NET ISSUE") FOR CASH AT A
PRICE OF RS. 240 PER EQUITY SHARE AGGREGATING RS. 7.058.88LAKHS. THE ISSUE CONSTITUTED
28.50% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY.
BID/ISSUE OPENED ON JUNE 29, 2010 BID/ISSUE CLOSED ON
ISSUE PRICE : RS. 240 PER EQUITY SHARE OF FACE VALUE RS. 10 EACH THE ISSUE PRICE IS 24 TIMES THE FACE VALUE
The Issue was made through the 100% book building process wherein upto 50% of the Net Issue to the Public was available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs"), out of which 5% was available for allocation on a proportionate basis to Mutual Funds and the remaining QIB portion was available for allocation on proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 15% of the Net Issue to the Public was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue to the Public was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.
The Issue received 33,220 applications (after cheque return cases) for 3,74,98,825 equity shares resulting in 12.54 times subscription. The details of the applications received (Including ASBA Bidders) in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders, Retail Individual Bidders and Eligible Employee categories are as under:
(Before technical rejections)
A summary of the final demand as per BSE and NSE as on the Bid/Issue Closinq date at different bid prices is as under:
The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ("BSE") on July 12,2010
A. Allocation to Eligible Employees (After Technical Rejections) includes ASBA Applications
The Basis of Allocation to the Eligible Employees who have bid at cut off and the Issue Price of Rs. 240/- per Equity Share (Rs. 20/- discount on the Issue Price was given to employees and hence the Issue Price for this category is Rs. 220 per Equity Share) was finalized in consultation with BSE. The total number of Equity shares allotted in this category is 48,800 Equity Shares to 122 successful applicants. The undersubscribed portion of 1,200 Equity Shares have been spilled over to Retail Individual Bidders (420 Equity Shares), Non Institutional Bidder (180 Equity Shares), QIB Category (600 Equity Shares). The category-wise details of the Basis of Allocation are under:
B. Allocation to Retail Individual Bidders (After Technical Rejections) includes ASBA Applications
The Basis of Allocation to the Retail Individual Bidders, who have bid at cut off and the Issue Price of Rs. 240/- per Equity Share, was finalized in consultation with BSE. The category was oversubscribed 9.81 times. Overall 32,572 applications for 3,14,98,800 Equity Shares were found valid and they were considered for allotment. The total number of shares allotted in this category is 10,29,420 Equity Shares to 32,433 successful applicants including spill over from Employee Category (420 Equity Shares). The category-wise details of the Basis of Allocation are under:
C. Allocation to Non Institutional Bidders (Aner Technicai rejeciions) includes ASBA Applications
The Basis of Allocation to the Non Institutional Bidders, who have bid at the Issue Price of Rs. 240/- per Equity Share, was finalized in consultation with BSE. The category was oversubscribed 48.51 times. Overall 139 applications for 2,14,01,774 Equity Shares were found valid and they were considered for allotment. The total number of shares allotted in this category is 4,41,180 Equity Shares to 139 successful applicants including spill over from Employee Category (180 Equity Shares). The category-wise details of the Basis of Allocation are (Sample) under:
D. Allocation to QIBs includes ASBA Applications
Allocation to QIBs has been done on a proportionate basis in consultation with BSE. As per the SEBI regulations, Mutual Funds were initially allotted 5% of the quantum of shares available (73,530 Equity Shares to 4 successful applicants) including spill over from Employee Category (30 Equity Shares) and other QIBs were allotted the remaining available shares (13,97,070 Equity Shares to 17 successful applicant) including spill overfrom Employee Category (570 Equity Shares) on proportionate basis,
The IPO Committee of the company at its Meeting held at on July 13,2010 has approved
the basis of allocation of shares of the Issue and has allotted the shares to various
The CAN-cum-Refund Orders and allotment advice and notices have been dispatched on July
14, 2010 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 have been
credited to their beneficiary accounts on July 14,2010 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 the National Stock
Exchange of India Limited within twelve working days from the date of closure of the
issue. The listing application has been filed with the BSE and NSE on July 14,2010.
INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrars to the Issue, Link Intime India Private Limited at www.linkintime.co.in
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-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:
LINK INTIME INDIA PRIVATE LIMITED C-13, Pannalal Silk Mills Compound, L.B.S.
Marg, Bhandup (West),
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 TECHNOFAB ENGINEERING LIMITED.