SADBHAV ENGINEERING LIMITED

(The Company was originally incorporated on October 3,1988 as Sadbhav Engineering Private Limited in the State of Gujarat. The Company became Deemed Public Company by virtue of Section 43A(1 A) of the Companies Act, 1956, with effect from September 18,1992. The Company was converted into a Public Limited Company in the name and style of "Sadbhav Engineering Limited" and a fresh Certificate of Incorporation was obtained on May 17, 2001)
Registered Office: (Registration No.04-11322) Sadbhav House, Opposite Law Garden Police Chowki, Ellsbridge, Ahmedabad 380 006. Tel.: +91-79-26463384, Fax: +91-79-26400210. Website: www.sadbhaveng.com, Email: sadbhavadl @sancharnet.in

BASIS OF ALLOCATION

Public Issue of 29,00,000 Equity Shares of Rs.10/- each issued for cash at a price of Rs.185 per share aggregating Rs. 5365 lakhs by Sadbhav Engineering Limited ("the Company" or "Issuer") (hereinafter referred to as the "Issue"). The Issue comprises of reservation of 1,00,000 Equity Shares aggregating Rs.185 lakhs for permanent employees on a competitive basis and the "net issue to public" of 28,00,000 Equity Shares aggregating Rs. 5180 lakhs. The Issue would constitute 26.61% of the fully diluted post issue paid up capital of the Company.

ISSUE PRICE Rs. 185 PER EQUITY SHARE
ISSUE PRICE IS 18.5 TIMES THE FACE VALUE OF RS. 10/-

The Issue made through the 100% Book Building Process wherein upto 50°% of the Net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs) (including 5% of the QIB portion specifically reserved for Mutual Funds). Further, atleast 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and atleast 35% of the Issue shall be 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 109863 applications for 89405713 equity shares resulting in 30.83 times subscription. The details of applications received in the Issue from Qualified Institutional Buyer, Non-Institutional Investors, Retail Individual Investors and Employee categories are as under (Before Technical Rejections)

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 ("BSE") on February 21, 2006
A. Allocation to Employees
The Basis of Allocation to the employees who have bid at cut-oft or at issue price of Rs.185/- per equity share was finalised in consultation with BSE. The category was over subscribed 1.86 times. Firm allotments have been made against all applications. 1,00,000 equity shares are allotted in this category. The category-wise details of the basis of allocation (sample) are as under:-

B. Allocation to Retai Investors
The Basis of Allocation to the retail investors who have bid at cut-off or at issue price of Rs.185/- per equity share was finalised in consultation with BSE. The category was over subscribed 23.10 times. 9,80,000 equity shares are allotted in this category. The category-wise details of the basis of allocation are as under:

C. Allocation to Non Institutional Investors
The Basis of Allocation to the non institutional investors who have bid at issue price of Rs.185/- per equity share was finalised in consultation with BSE. The category was over subscribed 41.18 times. 4,20,000 equity shares are allotted in this category. The category-wise details of the basis of allocation (sample) are as under:

D. Allocation to QIBs
Allocation to QIBs have been done on a proportionate basis in consultation with the Bombay Stock Exchange Limited. As per the SEBI guidelines, Mutual funds were initially allotted 5% of the quantum of shares available (70,000). Other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (13,30,000) on proportionate basis. The sectoral cap and other limits applicable to the holding of shares in company have been taken into account while allotting shares. Mutual Funds were allotted 30.65 % in the QIB segment and other QIB applicants were allotted 69.35% of the shares.

The Board of Directors of the Company at its meeting held at Ahmedabad on February 22, 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 has been dispatched on February 22, 2006 and February 23, 2006 to the address of the investors as registered with the depositories. In case the same is not received within ten da s, 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 February 23, 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, Intime Spectrum Registry Limited at www.intimespectrum.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:

Intime Spectrum Registry Limited, Unit : Sadbhav Engineering Limited, C-13,
Pannalal Silk Mills Compound. LBS Road, Bhandup West, Mumbai-400 078.
Tel No.: +91-22-25960320, Fax No.:+91-22-25960329, E-mail:sadbhav@intimespectrum.com

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 SADBHAV ENGINEERING LIMITED.