Basis of Allotment

SADBHAV ENGINEERING LIMITED

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)

Category No. of Applications No. of Shares Subscription
Retail Bidders 109264 22968213 23.44
Non-Institutional Bidders 414 17687715 42.11
Qualified Institutional Bidders 107 48549970 34.68
Employees 78 199815 2.00

Final Demand
The final demand at different bid prices is as under

Bid Price

No of Shares

% to Total Cumulative
No of Shares
Cumulative
% to total
165 138845 0.15 92768970 100.00
166 2590 0.00 926301 5 99.85
167 1435 0.00 92627535 9.85
168 39270 0.04 92626100 99.85
169 945 0.00 92586830 99.80
170 12565 0.01 92585885 99. 0
171 5530 0.01 92573320 99.7
172 2800 0.00 92567790 99.78
173 34790 0.04 92564990 9.78
174 140 0.00 92530200 99.74
175 1109150 1.20 92530060 99.74
176 1330 0.00 91420910 98.55
177 5530 0.01 91419580 98.55
178 51240 0.06 91414050 98.54
179 70 0.00 91362810 98.48
180 1107400 1.19 91362740 98.48
181 385 0.00 90255340 97.29
182 1260 0.00 90254955 97.29
183 22890 0.02 90253695 97.29
184 22820 0.02 90 30805 97. 26
185 & Cut Off 90207985 97.24 90207985 97.24
92768970 100.00

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:-

Category No. of
applications
% to
total
Total shares
applied
% to
total
Shares
allocated
Ratio Total no. of
shares allocated
210 1 1.47 210 0.11 113 Firm 113
245 3 4.41 735 0.40 132 Firm 396
525 4 5.88 2100 1.13 283 Firm 1132
980 2 2.94 1960 1.06 528 Firm 1056
1050 17 25.00 17850 9.62 566 Firm 9622
2135 2 2.94 4270 2.30 1150 Firm 2300
3500 3 4.41 10500 5.66 1885 Firm 5655
6510 1 1.47 6510 3.51 3507 Firm 3507

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:

Category No. of
applications
% to
total
Total shares
applied
% to
total
Shares
allocated
Ratio Total no. of
shares allocated
35 16572 15.36 580020 2.56 35 1:23 25235
70 13324 12.35 932680 4.12 35 2:23 40390
105 10703 9.92 1123815 4.96 35 3:23 48685
140 8182 7.58 1145480 5.06 35 4:23 49630
175 4314 4.00 754950 3.33 35 5:23 32655
210 5004 4.64 1050840 4.64 35 6:23 45465
245 29574 27.58 7289730 32.20 35 10:33 315385
280 1438 1.33 402640 1.78 35 8:23 17500
315 580 0.54 182700 0.81 35 9:23 7945
350 913 0.85 319550 1.41 35 10:23 13895
385 292 0.27 112420 0.50 35 11:23 4900
420 368 0.34 154560 0.68 35 12:23 6720
455 289 0.27 131495 0.58 35 13:23 5705
490 702 0.65 343980 1.52 35 14:23 14945
525 15459 14.33 8115975 35.85 35 24:37 350945

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:

Category No. of
applications.
% to
total
Total shares
applied
% to
total
Shares
allocated
Ratio Total no. of
shares allocated
560 35 10.14 19600 0.11 35 2:5 490
700 6 1.74 4200 0.02 35 1:2 105
1050 7 2.03 7350 0.04 35 5:7 175
1750 5 1.45 8750 0.05 42 Firm 210
3500 9 2.61 31500 0.18 85 Firm 765
5390 13 3.77 70070 0.41 131 Firm 1703
10780 13 3.77 140140 0.81 262 Firm 3406
14000 6 1.74 84000 0.49 340 Firm 2040
27020 7 2.03 189140 1.09 656 Firm 4592
54040 4 1.16 216160 1.25 1312 Firm 5248
108080 6 1.74 648480 3.75 2625 Firm 15750
270270 5 1.45 1351350 7.81 6563 Firm 32815
540540 2 0.58 1081080 6.25 13127 Firm 26254
1610000 1 0.29 1610000 9.31 39058 Firm 39058

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.

Cateory Fls/Banks MFs Flls InsuranceCompanies Total
No. of Shares 217269 429072 715252 38407 1400000

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



Place: Ahmedabad
Date: February 25, 2006

For Sadbhav Engineering Limited
Sd/
Nilesh Gohil
(Company Secretary)

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.

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