Basis of Allotment

Mahindra

Mahindra & Mahindra Financial Services Limited

(Originally Incorporated as Maxi Motors Financial Services Limited on January 1, 1991 under the Companies Act, 1956 and the name was changed to Mahindra & Mahindra Financial Services Limited on November 3,1992)
Registered Office: Gateway Building, Apollo Bunder, Mumbai 400001, Maharashtra, India. Tel: 912222021031; Fax: 912222875485
Corporate Office: Sadhana House, 2nd Floor, Behind Mahindra Towers, 570, P. B. Marg, Worli, Mumbai 400018, Maharashtra, India
Tel: 9122 5652 6000; Fax: 9122 2497 2741, E-mail: ravi.v@mahindra.com; Website: www.mahindrafinance.com. Contact Person: Mr. V Ravi; Tel: 9122 5652 6000

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 20,000,000 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF RS. 200/- PER EQUITY SHARE AGGREGATING RS. 400.00 CRORES (REFERRED TO AS "THE ISSUE"). THE ISSUE COMPRISED A FRESH ISSUE OF 10,000,000 EQUITY SHARES OF RS.10 EACH AND AN OFFER FOR SALE OF 10,000,000 EQUITY SHARES OF RS.10 EACH BY MAHINDRA & MAHINDRA LIMITED AND CERTAIN OTHER SHAREHOLDERS OF THE COMPANY THE ISSUE CONSTITUTED 23.26% OF THE FULLY DILUTED POST ISSUE CAPITAL OF THE COMPANY

THE FACE VALUE PER EQUITY SHARE IS 10/- EACH FOR CASH AT A PRICE OF RS.200/- EACH AND THE ISSUE PRICE IS 20 TIMES OF THE FACE VALUE.


In terms of Rule 19(2)(b) of the Securities Contract Regulation Rule, 1957, this being an Issue for less than 25% of the post issue capital, this Issue was made through the 100% Book Building Process wherein 60% of the Issue 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, at least 10% of the Issue was available for allocation on a proportionate basis to Non-institutional Bidders and at least 30% of the Issue was 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 283,509 applications for 537,752,658 equity shares resulting in 26.88 times subscription. The details of the applications received in the Issue from QIBs, Non-Institutional and Retail Bidders are as under (Before technical rejections):

Category No. of Applications No. of Shares Subscription (no. of times)
Retail Bidders 262,308 60,804,796 10.13
Non Institutional Bidders 1,056 85,900,665 42.95
QIBs 145 391,047,195 32.56

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

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to total
170 278,390 0.05 540,356,285 100.00
171 490 0.00 540,077,895 99.95
172 1155 0.00 540,077,405 99.95
173 175 0.00 540,076,250 99.95
174 315 0.00 540,076,075 99.95
175 25,165 0.00 540,075,760 99.95
176 140 0.00 540,050,595 99.94
177 245 0.00 540,050,455 99.94
178 7365 0.00 540,050,210 99.94
160 531,370 0.10 540,042,825 99.94
181 245 0.00 539,511,455 99.84
182 140 0.00 539,511,210 99.84
183 105 0.00 539,511,070 99.84
184 35 0.00 539,510,965 99.84
185 235,725 0.04 539,510,930 99.84
186 4165 0.00 539,275,205 99.80
187 350 0.00 539,271,040 99.80
188 210 0.00 539,270,690 99.80
190 524,125 0.10 539,270,480 99.80
191 175 0.00 538,746,355 99.70
192 70 0.00 538,746,180 99.70
193 105 0.00 538,746,110 99.70
195 19,880 0.00 538,746,005 99.70
196 245 0.00 538,726,125 99.70
198 665 0.00 538,725,880 99.70
199 140 0100 538,725,215 99.70
200 & Cut Off 538,725,075 99.70 538,725,075 99.70
540,356,265 100.00

The Basis o llotment was nalized in consultation with the National Stock Exchange of India Limited ("NSE") on March 8, 2006. The Committee of Directors of the company at it's Meeting held on March 9, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

A. Allotment to Retail Investors
The category (net of technical rejections) was over subscribed 9.85 times. The total number of shares allotted in this category is 6,000,000 Equity Shares. The category-wise details of the Basis of Allotment in this category are as under:

Category No. of
Applications
% to
total
Total No. of
Shares
applied
% to
total
No. of
Shares
allotted
Ratio Total No.
of Shares
allotted
35 29,123 10.62 1,019,305 1.72 35 5:49 104,020
70 29,905 10.90 2,093,350 3.54 35 10:49 213,605
105 28,434 10.37 2,985,570 5.05 35 15:49 304,640
140 18,803 6.85 2,632,420 4.45 35 2 :49 268,625
175 13,395 4.88 2,344,125 3.96 35 1:02 234,430
210 16,628 6.06 3,491,880 5.91 35 3:05 349,195
245 88,531 32.27 21,690,095 36.69 35 17:24 2,194,815
280 2,833 1.03 793,240 1.34 35 4:05 79,310
315 1,214 0.44 382,410 0.65 35 8:09 37,765
350 2,546 0.93 891,100 1.51 36 FIRM 91,656
385 886 0.32 341,110 0.58 39 FIRM 34,554

Additional

1 1:12 75
420 1244 0.45 522,480 0.88 43 FIRM 53,492
455 1308 0.48 595,140 1.01 46 FIRM 60,168
490 39473 14.39 19,341,770 32.71 50 FIRM 1,973,650

B. Allotment to Non Institutional Investors
The category was subscribed (net of technical rejections) 42.87 times. The total number of shares allotted in this category is 2,000,000 Equity Shares. A sample of the category-wise details of the Basis of Allotment in this category are as under:

Category No. of
Applications
% to
total
Total No. of
Shares
applied
% to
total
No. of
Shares
allotted
Ratio Total No.
of Shares
allotted
525 136 14.18 71,400 0.08 35 4:11 1,715
1015 13 1.36 13,195 0.02 35 2:03 315
10,010 7 0.73 70,070 0.08 234 FIRM 1,638
50,015 15 1.56 750,225 0.88 1167 FIRM 17,505
100,030 4 0.42 400,120 0.47 2334 FIRM 9,336
1,314,985 1 0.10 1,314,985 1.53 30674 FIRM 30,674
2,499,980 4 0.42 9,999,920 11.66 58317 FIRM 233,268
3,249,995 1 0.10 3,249,995 3.79 75812 FIRM 75,812
4,200,000 1 0.10 4,200,000 4.90 97973 FIRM 97,973
12,502,000 1 0.10 12,502,000 14.58 291632 FIRM 291,632
19,999,000 1 0.10 19,999,000 23.33 466493 FIRM 46,6493

C. Allotment to OIBs
As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available in the QIB category (600,000 Equity Shares) and other QIBs including Mutual Funds were allotted the remaining available shares (11,400,000 Equity Shares) on proportionate basis. Mutual Funds were allotted 17.98% and other QIB applicants were allotted 82.02% of the shares allotted in the QIB category.

Cateory Fls/Banks MFs File Insurance
Companies
Total
No.of Shares 222,182 2,158,098 9,546,727 72,993 12,000,000

The Refund Orders and allotment advice have been dispatched to the address of the investors as registered with the depositories on March 10, 2006. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been overprinted with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned on March 10, 2006. The listing applications have been filed with the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited on March 10, 2006 and the Company is taking steps to get the Equity Shares admitted for trading on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
The details of the allotment made would be hosted on the website of Registrar to the Issue, Kervy Computershare Private Limited at www.karvy.com or http://kcpl.karvy.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, the bid-cum-application form number, 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:

Karvy Computershare Private Limited
Unit: Mahindra, Karvy House, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500034, Fax: 040-23311968
Email: mmfsl.ipo@karvy.com or mailmanager@karvy.com 

TOLL FREE - HELPLINE NUMBER 1-600-3454001

 

Place: Mumbai
Date: March 10, 2006

For Mahindra & Mahindra Financial Services Limited

V Ravi

Chief Financial Officer and Compliance Officer

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 MAHINDRA & MAHINDRA FINANCIAL SERVICES LIMITED.

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