|Basis of Allotment|
|This is an advertisement for information purposes only. This
is not a Prospectus announcement, and does not constitute an invitation or offer to
acquire, purchase or subscribe to securities. Not for publication or distribution,
directly or indirectly outside India. All the Capitalized terms used and not specifically
defined here shall have the same meaning as ascribed to them in the prospectus dated
December 15, 2015 ("Prospectus")
ALKEM LABORATORIES LIMITED
Alkem Laboratories Limited ("Company") was incorporated as a private limited company 'Alkem Laboratories Private Limited' on August 8, 1973 at Patna under the Companies Act, 1956 and subsequently became a deemed public limited company under section 43A(2) of Companies Act, 1956 on October 26,1988. Pursuant to our Company passing a resolution under section 21 of Companies Act, 1956 and upon issuance of a fresh certificate of incorporation consequent on change of name dated August 21, 2001, the name of our Company was changed to 'Alkem Laboratories Limited' with effect from October 26, 1988. Pursuant to an order passed by the Company Law Board, Kolkata, the registered office of our Company was shifted from state of Bihar to Maharashtra in the year 2007. For further details, please refer to the chapter "History and Certain Corporate Matters" on page 158 of the Praspectus("Prospectus").
Registered Office and Corporate Office: Alkem House, Senapati Bapat Marg, Lower Parel, Mumbai -400 013, Maharashtra, India. Tel No: +9122 3982 9999; Fax No: +91 22 2492 7190. Contact Person: Mr. Manish Narang, Senior Vice President, Legal, Company Secretary and Compliance Officer; Tel No: +9122 3982 9999; Fax No: +9122 2492 7190. E-mail: email@example.com; Website: www.alkemlabs.com; Corporate Identity Number: U00305MH1973PLC174201.
BASIS OF ALLOTMENT
PROMOTERS OF OUR COMPANY: MR. SAMPRADA SINGH, MR. BASUDEO N. SINGH AND INDIVIDUALS IDENTIFIED AS PROMOTERS AND LISTED IN THE CHAPTER "OUR PROMOTERS, PROMOTER GROUP AND GROUP COMPANIES" ON PAGE 194 OF THE PROSPECTUS.
INITIAL PUBLIC OFFERING OF 12,853,442 EQUITY SHARES OF FACE VALUE RS. 2 EACH ("EQUITY SHARES") OF OUR COMPANY FOR CASH AT A PRICE OF RS. 1,050* PER EQUITY SHARE THROUGH AN OFFER FOR SALE, BY THE SELLING SHAREHOLDERS AGGREGATING RS. 13,477.64 MILLION" ("OFFER"). THE OFFER INCLUDED A RESERVATION OF UP TO 298,913 EQUITY SHARES, AGGREGATING UP TO RS. 283.97 MILLION*, FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES ON A COMPETITIVE BASIS ("EMPLOYEE RESERVATION PORTION"). THE OFFER LESS THE EMPLOYEE RESERVATION PORTION IS HEREINAFTER REFERRED TO AS THE "NET OFFER". THE OFFER AND THE NET OFFER CONSTITUTED UP T0 10.75% AND 10.50%, RESPECTIVELY, OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
*Discount of Rs. 100 per Equity Share to the Offer Price has been offered to Eligible Employees (the "Employee Discount"). All amounts have been included taking into consideration the Employee Discount.
AAAfterconsidering spill-overon account of under-subscription in the Employee Category as mentioned below
OFFER PRICE : RS. 1,050 PER EQUITY SHARE OF
*Please note that the Anchor Investor Offer Price is Rs. 1050 per Equity Share.
BID/OFFER PERIOD: OPENED ON TUESDAY, DECEMBER 8, 2015;
*The Anchor Investor Bid/Offer Period Was One Working Day Prior
Pursuant to Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended (the "SCRR"), the Offer is made in accordance with Regulation 26(1) of the SEBI ICDR Regulations, through the Book Building Process wherein 50% of the Net Offer was available for Allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs"). The Company and the Selling Shareholders, in consultation with the GCBRLMs, have allocated up to 60% of the QIB Portion to Anchor Investors at the Anchor Investor Offer Price, on a discretionary basis, out of which at least one-third was available for allocation to domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Offer Price in accordance with the SEBI ICDR Regulations. 5% of the Net QIB Portion (excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only, and the remaining of the Net QIB Portion was available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Net Offer was available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Net Offer was available for allocation to Retail Individual Investors in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, 298,913 Equity Shares was reserved for allocation on a proportionate basis to Eligible Employees, subject to valid Bids being received at or above the Offer Price. The Offer received 6,18,436 applications for 396,796,428 Equity Shares (prior to technical rejections) resulting in 30.8708 times subscription. The details of the applications received in the Offer from various categories are as under (before technical rejections):
A summary of the final demand as per the BSE and NSE as on the Bid/Issue Closing Date at different Bid prices is as under:
The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE Limited on December 19 2015.
A. Allotment to Retail Individual Bidders (After Technical Rejections) (including ASBAApplications)
The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Offer Price of Rs. 1,050 per Equity Share was finalized in consultation with the BSE. This category has been subscribed to the extent of 3.0322 times. The total number of Equity Shares Allotted in Retail Individual Bidders category is 4,434,060 Equity Shares to 316,718 successful applicants. The category-wise details of the Basis of Allotment are as under:
B. Allotment to Non-Institutional Bidders (After Technical Rejections)
The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Offer Price of Rs. 1,050 per Equity Share was finalized in consultation with BSE. This category has been subscribed to the extent of 122.4307 times. The total number of Equity Shares Allotted in this category is 1,900,311 Equity Shares to 728 successful applicants. The category-wise details of the Basis of Allotment are as under(SAMPLE):
C.AIIotmentto Eligible Employees (AfterTechnical Rejections)
The Basis of Allotment to the Employees, who have bid at the Offer Price less discount of Rs. 100 amounting to Rs. 950 per Equity Share or above, was finalized in consultation with BSE. This category has been subscribed to the extent of 0.6179 times. The total number of Equity Shares Allotted in this category is 184,702 Equity Shares to 1,599-successful applicants. The category-wise details of the Basis of Allotment are as under:
D. Allotment to QIBs (excluding Anchor Investors)
The Basis of Allotment to QIBs, who have Bid at the Offer Price of Rs. 1,050 per Equity Share has been done on a proportionat basis in consultation with the BSE. This category has been subscribed to the extent of 55.7381 times of Net QIB portion. As pe the SEBI Regulations, Mutual Funds were Allotted 5% of the Equity Shares of Net QIB portion available ie 128,400 Equit Shares and other QIBs and unsatisfied demand of Mutual Funds were Allotted the remaining available Equity Shares i.e 2,439,611 Equity Shares on a proportionate basis. The total number of Equity Shares Allotted in the QIB category is 2,568,011 Equity Shares, which were allotted to 211 successful Applicants. The category-wise details of the Basis of Allotment are a under:
E. Allotment to Anchor Investors
The Company and Selling Shareholders have allotted 3,766,358 Equity Shares to 23 Anchor Investors, in consultation with the BRLMs. In accordance with the SEBI Regulations, this represents 60% of the QIB Portion.
The IPO Committee of our Company at its meeting held on December 19, 2015 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being BSE Limited and has allotted the Equity Shares to various successful applicants. The dispatch of Allotment Advice-cum-Refund Orders will be completed to the address of the investors as registered with the depositories by December 22, 2015. Further, instructions to the SCSBs have been dispatched/mailed on December 20, 2015. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Refund Orders have been over-printed with the bank account details as registered, if any, with the depositories. The Equity Shares allotted to the successful allottees have been uploaded on December 21, 2015 tor credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. Our Company is taking steps to get the Equity Shares admitted for trading on the BSE and NSE within 12 working days of the Bid/Offer closing Date. Our Company filed the listing application on December 21, 2015. The Equity Shares are proposed to be listed on BSE and NSE and the trading is expected to commence on or about December 23, 2015.
INVESTORS PLEASE NOTE
The details of the allotment made will be hosted on the website of the Registrar to the Offer, Link Intime India Private Limited at http://www.linkintime.co.in.
All future correspondence in this regard may kindly be addressed to the Registrar to the Offer 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, place where the bid was submitted and payment details at the address given below:
Link Intime India Private Limited
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET
PRICE OF THE EQUITY SHARES ON LISTING ORTHE BUSINESS PROSPECTS OF ALKEM LABORATORIES
The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction. These materials are not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). These materials are not an offer of securities for sale into the United States, Canada or Japan. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.