JK CEMENT LTD

(Incorporated under the Companies Act, 1956 on November 24, 1994 as J.K. Cement Limited)
Registered Office: Kamla Tower; Kanpur 208 001, Uttar Pradesh, India. Tel: +91 512 237 1478; Fax +91 512 2369854. Contact Person: Mr. Manish Bajpai; Tel: +91 512 237 1478; Fax +91 512 236 9854,
E-mail: fpo@jkcements.com; Website: www jkcement.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 20,000,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 148 PER EQUITY SHARE AGGREGATING RS.2,960 MILLION (HEREINAFTER REFERRED TO AS THE "ISSUE") BY J.K. CEMENT LIMITED ("J.K. CEMENT", "THE COMPANY" OR "THE ISSUER"). 200,000 EQUITY SHARES SHALL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY EMPLOYEES AT THE ISSUE PRICE (THE "EMPLOYEE RESERVATION PORTION") AND 1,800,000 EQUITY SHARES SHALL BE RESERVED IN 'THE ISSUE FOR SUBSCRIPTION BY EXISTING SHAREHOLDERS AT THE ISSUE PRICE (THE "EXISTING SHAREHOLDERS RESERVATION PORTION", AND THE ISSUE OF EQUITY SHARES OTHER THAN THE EMPLOYEE RESERVATION PORTION AND THE EXISTING SHAREHOLDERS RESERVATION PORTION, THE "NET ISSUE"). THE ISSUE SHALL CONSTITUTE 28.60% OF THE FULLY DILUTED POST ISSUE CAPITAL OF OUR COMPANY.

ISSUE PRICE: Rs. 148 PER EQUITY SHARE
Issue Price is 14.8 times the face value of Rs. 10

The Issue made through the 100% Book Building Process wherein at least 50% of the Net Issue has been allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs"). (5% of the QIB Portion would be specifically reserved for mutual funds). Further, not less than, 15% of the Net Issue has been available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35^% of the Net Issue has been available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Further, up to 200;000 Equity Shares has been available for allocation on a proportionate basis to the Employees, subject to valid Bids beingreceived at or above the Issue Price and up to 1,800,000 Equity Shares has been available -for allocation on a proportionate basis to the Existing Shareholders, subject to valid Bids being received at or above the Issue Price.
The Issue received 38835 applications for 35125760 equity shares resulting in 1.76 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders, Retail Individual Bidders, Employees and Existing Shareholders categories are as under:

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

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited (BSE) on 9th March, 2006.

A) Allocation to Employees
The total number of shares allotted in this category is 58,680 Equity Shares. The total number of valid bids received in this category is 376 resulting in 0.29 times subscription. Full and firm allotment was made in this category for all the valid bids.

B) Allocation to Existing Shareholders
The total number of shares allotted in this category is 686,200 Equity Shares. The total number of valid bids received in this category is 4163 resulting in 0.38 times subscription. Full and firm allotment was made in this category for all the valid bids.

C) Allocation to Retail Investors
The total number of shares allotted in this category is 59,23,680 Equity Shares. The total number of valid bids received in this category is 33989 resulting in 0.94 times subscription. Full and firm allotment was made in this category for all the valid bids.

D) Allocation to Non Institutional Investors
The total number of shares allotted in this category is 19,70,120 Equity Shares. The total number of valid bids received in this category is 287 resulting in 0.73 times subscription. Full and firm allotment was made in this category for all the valid bids.

E) Allocation to QIBs

The Board of Directors of the Company at its meeting held at Kanpur on 9th March, 2006 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 will 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 have been credited to their beneficiary accounts on 11th March, 2006 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 the Bombay Stock Exchange Limited and the National Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE : The detail of allocation made would be hosted on the website of Registrar to the Issue, MCS Limited at www.mcsind.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, 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:

MCS Limited
Sri Padmavati Bhavan
Plot No. 93, Road No. 16, MIDC Area, Andheri East, Mumbai 400 093, India,
Tel.: +91 22 5502 5235, Fax: +91 22 5502 5256
E-mail: jkcement@mcsind.com, Website: www.mcsind.com

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES OF THE COMPANY ON LISTING OR THE BUSINESS PROSPECTS OF THE COMPANY.