|Basis of Allotment|
RURAL ELECTRIFICATION CORPORATION LIMITED
Our Company was incorporated under the Companies Act, 1956, as amended on July 25, 1969 at New Delhi as "Rural Electrification Corporation Private Limited". Presently, the name of our company is "Rural Electrification Corporation Limited", For details in relation to the change in name of the Company and its registered office, see the section titled "History and Certain Corporate Matters" on page 94 of the Prospectus.
Registered and Corporate Office: Core 4, SCOPE Complex. 7, Lodhi
Road, New Delhi 110 003, India
BASIS OF ALLOTMENT
PUBLIC ISSUE OF 171,732,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH ("EQUITY SHARES") OF RURAL ELECTRIFICATION CORPORATION LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH AT PRICES DETERMINED THROUGH THE ALTERNATE BOOK BUILDING METHOD UNDER PART D OF SCHEDULE XI OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009, AS AMENDED (THE "SEBI REGULATIONS") AGGREGATING UP TO RS. 35,300.43 MILLION (THE "ISSUE") CONSISTING OF A FRESH ISSUE OF 128,799,000 EQUITY SHARES BY THE COMPANY ("FRESH ISSUE") AND AN OFFER FOR SALE OF 42,933,000 EQUITY SHARES ("OFFER FOR SALE") BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA (THE "SELLING SHAREHOLDER"). THE ISSUE COMPRISES A NET ISSUE OF 171,382,000 EQUITY SHARES TO THE PUBLIC ("NET ISSUE") AND A RESERVATION OF 350,000 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE CONSTITUTED 17.39% OF THE FULLY DILUTED POST-ISSUE CAPITAL OF THE COMPANY AND THE NET ISSUE CONSTITUTED 17.36% OF THE FULLY DILUTED POST-ISSUE CAPITAL OF THE COMPANY.
THE FLOOR PRICE (FOR BIDS SUBMITTED BY NON-INSTITUTIONAL BIDDERS AND RETAIL INDIVIDUAL BIDDERS) IS RS. 203 PER EQUITY SHARE. THE FLOOR PRICE IS 20.3 TIMES OF THE FACE VALUE. THE CLEARING PRICE (FOR BIDS SUBMITTED BY QUALIFIED INSTITUTIONAL BUYERS, INCLUDING MUTUAL FUNDS) IS RS. 206 PER EQUITY SHARE. THE EMPLOYEE PRICE (FOR BIDS SUBMITTED BY ELIGIBLE EMPLOYEES UNDER THE EMPLOYEE RESERVATION PORTION) IS RS. 193 PER EQUITY SHARE.
All terms used herein and not specifically defined shall have the same meaning as ascribed to such terms under the Prospectus dated February 25, 2010 (the "Prospectus") with the Registrar of Companies, National Capital Territory of Delhi and Haryana.
The Issue was made through the Alternate Book Building Process wherein up to 50% of the Net Issue was available for allocation on a price priority basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was to be specifically available for allocation to mutual funds) subject to valid Bids being received from them above the Floor Price. Further, not less than 15% of the Net Issue was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at the Floor Price. Further, 3,50,000 Equity Shares was available for allocation to eligible employees, subject to valid bids being received from them at the Employee Price.
The Issue received 57,858 applications for 538,911,584 Equity Shares resulting in 3.14 times subscription. The details of the applications received In the Issue, through the various escrow collection banks, from QIBs, Non-Institutional Bidders, Retail Individual Bidders and Eligible Employee categories are as under(before technical rejections)
The Basis of Allocation was finalized in consultation with the Designated Stock Exchange i.e., National Stock Exchange of India Limited ("NSE") on March 5, 2010.
B. Allocation to Retail Individual Bidders (including ASBA Applications)
(After Techanical rejections)
C. Allocation to Non Institutional Bidders (After Technical Rejections)
D. Allocation to Qualified Institutional Bidders (After Rejections)
The FPO Committee of the Board of Directors of the Company, at its meeting held at
Hyderabad on March 5, 2010, has approved the 'basis of allocation' of Equity Shares
for the Issue and has Allotted the Equity Shares to various successful applcants.
INVESTORS PLEASE NOTE
All future correspondences 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 Equity 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
TOLL FREE - HELPLINE NUMBER
CORRIGENDUM: As disclosed in the Prospectus dated February 25, 2010 (the "Prospectus"), in furtherance to the finalization of 'Basis of Allocation' by the Company and the Selling Shareholder in consultation with the NSE, i.e., the Designated Stock Exchange, the aggregate issue size has been revised from Rs. 35,299.42 million to Rs. 35,300.43 million. Acconingly, the Prospectus shall stand amended to this effect.
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF RURAL ELECTRIFICATION CORPORATION LIMITED.
Rural Electrification Corporation Limited (the "Company")
has made a further public offer of its equity share and has filed a prospectus with the
registrar of Companies, NCT of Delhi and Haryana, the Stock Exchanges and the Securities
and Exchange Board of India ("SEBI"). The Prospectus is available on the
website of SEBI at www.sebi.gov.in and the
respective websites of the BRLMs at, www.kmcc.co.in,
www.dspml.com, www.icicisecurities.com, www.jmfinancial.in and www.abnamro.co.in. Investors should note that
Investment in equity shares involves a high degree of risk and for details relating to the
same, see the section titled "Risk factors" of the Prospectus.