ABG Shipyard Limited

Registered Office: Magdala Port, Dumas Road, Surat: 395 007; Tel: +91 261 272 5191; Fax: +91 261 2726481
Corporate Office: 4th and 5th Floor, Bhupati Chambers, 13, Mathew Road, Mumbai: 400 004. Tel: + 91 22 56563000; Fax: +91 22 23649236;
Contact person: Manoj Raichandani, DGM (Finance) & Company Secretary; E-mail: ipo®abgindia.com; Website: http:/Avww.abgindia.com (We were incorporated on March 15, 1985 as Magdala S ipyard Private Limited, under the Companies Act, 1956. On May 25, 1995, our name was changed to ABG Shipyard Private Lirnited and further on  June 14, 1995 our name was changed to ABG Shipyard Limited.)

BASIS OF ALLOCATION

PUBLIC ISSUE OF UP TO 8,500,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS.185 PER EQUITY SHARE, AGGREGATING TO RS. 1672.50 MILLION BY ABG SHIPYARD LIMITED ("THE COMPANY" OR "ISSUER"). THE FRESH ISSUE REFERRED TO HEREIN AS THE "ISSUE" INCLUDES A RESERVATION OF 200,000 EQUITY SHARES FOR SUBSCRIPTION BY EMPLOYEES OF ABG SHIPYARD LIMITED (THE "EMPLOYEE RESERVATION PORTION") AND NET ISSUE TO THE PUBLIC OF 8,300,000 EQUITY SHARES OF THE FACE VALUE OF RS. 10 EACH AT THE PRICE OF RS. 186 FOR CASH AGGREGATING RS. 1535.50 MILLION (HEREWITH REFERRED TO AS "NET ISSUE")

THE NET ISSUE CONSTITUTES 16.30 % OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY. THE FACE VALUE OF THE SHARE 1S RS. 10 AND THE ISSUE PRICE IS 18.5 TIMES THE FACE VALUE

The Issue was made through the 100% Book Building Process where in 60% of the Net Issue is allocated on a discretionary basis to Qualified Institutional Buyers ("QIBs"). Further, 10% of the Net Issue is allocated on a proportionate basis to Non-institutional Bidders and the remaining 30% of the Net Issue is allocated on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.

The Issue received 272337 applications for 466250412 equity shares resulting in 54.85 times subscription. The details of the application received in the Issue from Retail Investors, Non Institutional Investors, Qualified Institutional Investors and Employees categories is as under:

*Including bids received at cut off price. # After eliminating cheque returns

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 December 8, 2005.
A. Allocation to Retell Investors
The Basis of Allocation to the Retail Investors, who have bid at cut-off or at the Issue Price of Rs.185/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 25.44863 times. The total number of shares allotted in this category is 2495220 Equity Shares. The category-wise details of the Basis of Allocation are as under:

B. Allocation to Non Institutional Investors
The Basis of Allocation to the Non institutional investors, who have bid at cut-off or at the Issue Price of Rs.185/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 117.07 times. The total number of shares allotted in this category is 831728 Equity Shares. The category-wise details of the Basis of Allotment are as under

C. Allocation to QIBs

D. Allocation to Employees
The Basis of Allocation to the employees of ABG Shipyard Limited who have bid at cut-off or at the Issue Price of Rs.185/- per Equity Share, was finalized in consultation with BSE The total number of shares allotted in this category is 182630. The allotment was full & firm for all valid bids. The unsubscribed portion of 17370 equity shares was added to the QIB, Retail & Non Institutional Investors categories.
The Board of Directors of ABG Shipyard Limited at its Meeting held at Surat on December 8, 2005 has approved the basis of allocation of shares and allotted the shares to various successful applicants.
The despatch of Refund Orders has been completed by December 10, 2005 to the address of the investors as registered with the depositories. The refund orders have been printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to the successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The company has submitted the listing application on December 9, 2005. Issuer is taking steps to get the Equity shares admitted for trading on the Bombay Stock Exchange Limited within seven working days from the date of approval of basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would also be hosted on the webalte of Registrars 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 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:

INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalel Silk Mills Compound, Kantilal Maganlal Industrial Estate,
LBS Marg, Bhondup (W), Mumbai 400 078. Tel: 5555 5491 Fax: 5555 5499
Website: www.intImesp2ctrum.com E-mail: abgshipyard@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 ABG SHIPYARD LIMITED.