Basis of Allotment
ROYAL ORCHID HOTELS

ROYAL ORCHID HOTELS

ROYAL ORCHID HOTELS LIMITED

REGISTERED OFFICE: Hotel Harsha, No.11, Park Road, Bangalore 560 051.
CORPORATE OFFICE: No.1, Golf Avenue, Adjoining KGA Golf Course, Airport Road, Bangalore 560 008.
Tel: (91 80) 2558 4242; Fax: (91 80) 2509 2014;

CONTACT PERSON: Mr. G. Tirupathi Rao, Company Secretary and Compliance Officer;
E-mail: gtrao@baljeehotels.com; http://www.royalorchidhotels.com

(We were incorporated as Universal Resorts Limited, a public limited company under the Companies Act, 1956
on January 3, 1986. On April 10, 1997, our name was changed to Royal Orchid Hotels Limited.)

BASIS OF ALLOCATION

PUBLIC ISSUE OF 6,820,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 165 PER EQUITY SHARE AGGREGATING RS. 112.53 MILLION BY ROYAL ORCHID HOTELS LIMITED ("THE COMPANY" OR "ISSUER") (THE "ISSUE"). THE ISSUE WOULD CONSTITUTE 25.04% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.

THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 AND THE ISSUE PRICE IS 16.5 TIMES OF THE FACE VALUE.

The Board of Directors of Royal Orchid Hotels Limited, wish to thank the investing public for their response to the issue which opened on January 12th 2006.

The Issue was made through a 100% Book Building Process wherein up to 50% of the Issue will be allocated to Qualified Institutional Buyers ("QIBs") on a proportionate basis. Out of the portion available for allocation to the QIBs, 5% is available for allocation on a proportionate basis to Mutual Funds only and the remaining QIB Portion available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, at least 15% of the Issue is available for allocation on a proportionate basis to Non-Institutional Bidders and at least 35% of the Issue is available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 254564 applications for 266073440 equity shares resulting in 39.0137 times subscription. The details of the application received in the Issue from Retail Individual Bidders, Non Institutional Investors and Qualified Institutional Buyers categories is as under: as under:

Category No. of Applications No of Shares Bid* No. of times Subscribed #
Retail Individual Bidders 253519 67666120 28.3477
Non Institutional Bidders 883 51535080 50.3764
Qualified Institutional Buyers 162 146872240 43.0710
Total 254564 266073440 39.0137

* Including bids received at cut off price # after eliminating cheque returns.

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

Book Analysis as of 17-01-2006

Rate No. of Applns Total Shares Cumulative No. of Appins Cumulative No. of Shares % to Size
9999 246678 65746680 246678 65746680 1,650.91
165.00 14641 202280200 261319 268026880 3,930.01
164.00 22 3240 261341 268030120 3,930.06
163.00 24 1400 261365 268031520 3,930.08
162.00 30 3720 261395 268035240 3,930.14
161.00 9 680 261404 268035920 3,930.15
160.00 462 101600 261866 268137520 3,931.64
159.00 5 40 261871 268137560 3,931.64
158.00 42 760 261913 268138320 3,931.65
157.00 23 1240 261936 268139560 3,931.67
156.00 189 9880 262125 268149440 3,931.81
155.00 406 43080 262531 268192520 3,932.44
154.00 48 2680 262579 268195200 3,932.48
153.00 12 360 262591 268195560 3,932.49
152.00 15 800 262606 268196360 3,932.50
151.00 19 880 262625 268197240 3,932.51
150.00 761 179880 263386 268377120 3,935.15
Total 263386 268377120

The Basis of Allotment was finalized in consultation with National Stock Exchange of India Limited ("NSE") on 30th January 2006.

A) Allocation to Retail Individual Bidders

The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at Issue Price of Rs. 165/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 28.3477 times. The total number of shares allotted in this category is 2387000 Equity Shares. The sample of category-wise details of the Basis of Allocation are as under:

Category No. of
Applns		 % to
Total		 Total No. of
shares applied		 % of
Total		 No. of shares allocated
in the category		 Ratio Total No. of
shares allocated
40 23,623 9.32 944920 1.4 40 3-85 33,320
80 22,921 9.04 1833680 2.71 40 6-85 64,680
120 21,697 8.56 2603640 3.85 40 9-85 91,880
160 12,627 4.98 2020320 2.99 40 12-85 71,280
200 18,099 7.14 3619800 5.35 40 3-17 127720
240 8,208 3.24 1969920 2.91 40 11-52 69,440
280 97,834 38.59 27393520 40.48 40 20-81 966240
320 2,908 1.15 930560 1.38 40 24-85 32,840
360 846 0.33 304560 0.45 40 7-22 10,760
400 2,493 0.98 997200 1.47 40 31-88 35,120
440 653 0.26 287320 0.42 40 31-80 10,120
480 790 0.31 379200 0.56 40 41-97 13,320
520 774 0.31 402480 0.59 40 39-85 14,200
560 1,215 0.48 680400 1.01 40 40-81 24,000
600 38,831 15.32 23298600 34.43 40 46-87 821240
600 1 2-49 840

B) Allocation to Non Institutional Bidders

The Basis of Allocation to the Non Institutional Investors, who have bid for at Issue Price of Rs. 165/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 50.3764 times. The total number of shares allotted in this category is 1023000 Equity shares. A sample of category-wise details of the Basis of Allocation are as under

Category No. of
Applns.		 Total No. of
shares applied		 % to
Total		 No. of Shares allocated
in the category		 Ratio Total No. of
Shares allocated
640 76 48,640 0.09 40 6-19 960
680 8 5,440 0.01 40 3- 8 120
720 20 14,400 0.03 40 7-20 280
760 6 4,560 0.01 40 1- 3 80
800 20 16,000 0.03 40 2- 5 320
840 3 2,520 40 1- 3 40
880 6 5,280 0.01 40 1- 2 120
920 3 2,760 0.01 40 1- 3 40
960 2 1,920 40 1- 2 40
1000 46 46,000 0.09 40 1- 2 920
1650000 2 33,00,000 6.4 32736 FIRM 65,472
1818160 1 18,18,160 3.53 35992 FIRM 35,992
2121200 1 21,21,200 4.12 41907 FIRM 41,907
6820000 2 1,36,40,000 26.47 135131 FIRM 2,70,262

C) Allocation to Qualified Institutional Bidders:

Category Fls/Banks MF's Fll's Insurance Co's VC Total
No of shares 446786 972021 1853035 136820 1338 3410000

The Board of Directors of Royal Orchid Hotels Limited at its meeting held at Bangalore on 30th January 2006 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

The despatch of Refund Orders has been completed by February 01, 2006 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 printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to the successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has submitted the listing application. The Company is taking steps to get the Equity shares admitted for trading on the National Stock Exchange of India Ltd and 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 allocation made have been hosted on the website of Registrars to the Issue, MCS Limited
at www. mcsind.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:

MCS LIMITED
Unit: Royal Orchid Hotels Limited., Sri Venkatesh Bhavan, Plot No. 27, Road No.11, M.I.D.C.
Andheri (East), Mumbai - 400 093 Tel: (91 22) 2820 1785 Fax: (91 22) 2820 1783 Email: royalorchid@mcsind.com
Website: www.mcsind.com Contact Person: Shashikant Kadam

Place : Mumbai
Date  : 31st January, 2006

For Royal Orchid HotelsLimited
Sd/-                    
Managing Director       

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 ROYAL ORCHID HOTELS LIMITED.
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