Basis of Allotment

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(This is only an advertisement for information purpose and not a Prospectus Announcement)

V-Guard Industries Limited

(Our Company was originally incorporated as V-Guard Industries Limited on February 12, 1996 under the Companies Act, 1956, with the Registration No. 09-10010 of 1996. With effect from November 15, 2001 our Company was converted into a Private Limited Company, and subsequently got converted into a Public Limited Company on August 1, 2007 and received a fresh certificate of incorporation in the name of "V-Guard IndustriesLimited."Our Corporate Identity Number is U31200KL1996PLC010010)

Registered cum Corporate Office: 44/1037, Little Flower Church Road, Kaloor, Cochin- 682017, Kerala, India; Our Company has not changed its registered office since its incorporation. Tel. No.: +91-484-2539911, 2530912. Fax No.: + 91-484-2539958, Website: www.vguard.in, Contact Person & Compliance Officer: Mr. T. Nandakumar, E-mail: ipo@vguard.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 80,00,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 82 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 72 PER EQUITY SHARE) FOR CASH AGGREGATING TO RS. 6560 LAKHS (THE "ISSUE") OUT OF WHICH 4,00,000 EQUITY SHARES HAVE BEEN RESERVED FOR ELIGIBLE EMPLOYEES OF OUR COMPANY ( "EMPLOYEE RESERVATION PORTION"). THE NET ISSUE TO THE PUBLIC SHALL BE 76,00,000 EQUITY SHARES OF RS.10 EACH FOR CASH AT A PRICE OF RS. 82 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 72 PER EQUITY SHARE) FOR CASH AGGREGATING TO RS. 6232 LAKHS (THE "NET ISSUE TO PUBLIC"). THE ISSUE WILL CONSTITUTE 26.80 % OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY AND THE NET ISSUE TO PUBLIC WILL CONSTITUTE 25.46 % OF THE FULLY DILUTED POST ISSUE PAID -UP CAPITAL OF OUR COMPANY. THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 82/- AND IT IS 8.2 TIMES THE FACE VALUE. The Issue was made through the 100% Book Building Process wherein up to 50% of the net Issue to public 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, not less than 15% of the net issue to public was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the net Issue to public was available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price. FURTHER UPTO 400000 EQUITY SHARES WAS AVAILABLE FOR ALLOCATION ON A PROPORTIONATE BASIS TO ELIGIBLE EMPLOYEES, SUBJECT TO VALID BIDS BEING RECEIVED AT OR ABOVE THE ISSUE PRICE.

The Issue received 40160 applications for 19582000 equity shares resulting in 2.4477 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investor and Employee categories are as under: (Before technical rejections)

Category No. of Applications No. of Shares Subscription
Qualified Institutional Buyers 15 6619520 1.74
Non Institutional Investors 217 1872960 1.64
Retail Individual Investors 39620 10733520 4.04
Employees 308 356000 0.89

Final Demand
A sample of the final demand at different bid prices is as under:

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to Total
80 198640 0.9119 21782080 100.0000
81 6080 0.0279 21583440 99.0881
82 27600 0.1267 21577360 99.0601
83 31360 0.1440 21549760 98.9334
84 5360 0.0246 21518400 98.7895
85 12106880 55.5818 21513040 98.7649
CUTOFF 9406160 43.1830 9406160 43.1830
TOTAL 21782080

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ("BSE") on 4th March, 2008.

A. Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at cut-off or at the Issue Price of Rs. 82/- per Equity Share was finalized in consultation BSE. The category was subscribed 0.890000 times. The total number of Equity Shares allotted in this category is 356000 Equity Shares to 308 successful applicants. The Unsubscribed portion (44,000 shares) is spilled over to Retail category. The category wise details of the Basis of Allocation (sample) are as under:

Category No. Of
Applns.
% to
Total
Total No. of
Shares applied
% to
Total
No. of Shares
allocated
Ratio Total No.of
Shares allocated
80 26 8.44 2080 0.58 80 FIRM 2080
160 28 9.09 4480 1.26 160 FIRM 4480
240 21 6.82 5040 1.42 240 FIRM 5040
960 5 1.62 4800 1.35 960 FIRM 4800
1040 7 2.27 7280 2.04 1040 FIRM 7280
1200 1 0.32 1200 0.34 1200 FIRM 1200
2000 3 0.97 6000 1.69 2000 FIRM 6000
2160 1 0.32 2160 0.61 2160 FIRM 2160
3760 1 0.32 3760 1.06 3760 FIRM 3760
4160 1 0.32 4160 1.17 4160 FIRM 4160
4640 1 0.32 4640 1.3 4640 FIRM 4640
6080 1 0.32 6080 1.71 6080 FIRM 6080
7760 1 0.32 7760 2.18 7760 FIRM 7760
14480 1 0.32 14480 4.07 14480 FIRM 14480
| 19840 1 0.32 19840 5.57 19840 FIRM 19840

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 82/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 3.891834 times. The total number of equity shares allotted in this category is 2704038 including Spill over from Employee Category (44000 Equity Shares). The category-wise details of Basis of Allocation are as under:

Category No. Of
Applns.
% to
Total
Total No. of
Shares applied
% to
Total
No. of Shares
allocated
Ratio Total No.of
Shares allocated
80 14362 37.09 1148960 10.92 80 15:58 297200
160 8968 23.16 1434880 13.63 80 15:29 371120
240 4841 12.5 1161840 11.04 80 45:58 300560
320 1988 5.13 636160 6.05 82 FIRM 163016
400 1991 5.14 796400 7.57 102 FIRM 203082
480 859 2.22 412320 3.92 123 FIRM 105657
560 1726 4.46 966560 9.18 143 FIRM 246818
640 513 1.32 328320 3.12 164 FIRM 84132
720 153 0.4 110160 1.05 185 FIRM 28305
800 425 1.1 340000 3.23 205 FIRM 87125
880 80 0.21 70400 0.67 226 FIRM 18080
960 180 0.46 172800 1.64 246 FIRM 44280
1040 147 0.38 152880 1.45 267 FIRM 39249
1120 2482 6.41 2779840 26.42 287 FIRM 712334
1200 10 0.03 12000 0.11 308 FIRM 3080

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to Non-Institutional Investors, who have bid at the Issue Price of Rs. 82/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 1.421404 times. The total number of Equity Shares allotted in this category is 1139962 Equity Shares to 176 successful applicants. The category-wise details of Basis of Allocation (sample) are as under:

Category No. of
Applns.
% to
Total
Total No. of
Shares applied
% to
Total
No. of
Shares allocated
Ratio Total No.of
Shares allocated
1200 49 27.84 58800 3.63 844 FIRM 41356
2000 9 5.11 18000 1.11 1407 FIRM 12663
2080 1 0.57 2080 0.13 1463 FIRM 1463
2160 1 0.57 2160 0.13 1520 FIRM 1520
3200 1 0.57 3200 0.2 2251 FIRM 2251
3520 1 0.57 3520 0.22 2476 FIRM 2476
3600 2 1.14 7200 0.44 2533 FIRM 5066
3680 1 0.57 3680 0.23 2589 FIRM 2589
5520 1 0.57 5520 0.34 3883 FIRM 3883
5840 6 3.41 35040 2.16 4109 FIRM 24654
10000 1 0.57 10000 0.62 7035 FIRM 7035
10240 1 0.57 10240 0.63 7204 FIRM 7204
32000 1 0.57 32000 1.97 22513 FIRM 22513
35280 1 0.57 35280 2.18 24821 FIRM 24821
58800 1 0.57 58800 3.63 41368 FIRM 41368
352880 1 0.57 352880 21.78 248251 FIRM 248251
441040 1 0.57 441040 27.22 310267 FIRM 310267

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with NSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (1,90,000) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (36,10,000) on proportionate basis.

Category Fls/Banks MFs Fits VCs Total
No.of Shares 2088543 1083955 627502 - 3800000

The Board of Directors of the company at its Meeting held at Kochi on March 05,2008 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.The CAN-cum-Refund Orders and allotment advice and notices have 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 are being credited to their beneficiary accounts 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 National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval or the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website 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, Pannalal Silk Ms Compound, L.B.S Marg, Bharsdup (W), Mumbai -400 078.
Tel: +91-22-25960320. Fax: +91-22-25960329. Emaihvil.ipo@inlimespectrum.com

Place: Kochi
Date: 05 March, 2008
For V-GUARD INDUSTRIES LIMITED
sd/-
T. Nandakumar
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 V-GUARD INDUSTRIES LIMITED.

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