Basis of Allotment

INOX LEISURE LIMITED

INOX LEISURE LIMITED

(Incorporated on November 9, 1999 under the Companies Act, 1956)
Registered Office: ABS Towers, Old Padre Road, Vadodara - 390007, Gujarat
Corporate Office: 21-A, Film Centre, 2nd Floor, 68, Tardeo Road, Mumbai 400 034.
Tel:+91-22-5662 7051, Fax:+91-22-5662 7081. Website: www.inoxmovies.com, Email: investors@inox.co.in

BASIS OF ALLOCATION

PUBLIC ISSUE OF 16,500,000 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF RS. 120/- PER EQUITY SHARE AGGREGAT ING TO RS. 1980 MILLION (REFERRED TO AS "THE ISSUE") CONSISTING OF A FRESH ISSUE OF 12,000,000 EQUITY SHARES OF RS.10 EACH, OF WHICH 200,000 EQUITY SHARES OF RS.10/- EACH ARE RESERVED FOR SUBSCRIPTION BY PERMANENT EMPLOYEES IN INDIA AND AN OFFER FOR SALE OF 4,500,000 EQUITY SHARES OF RS.10/- EACH BY GUJARAT FLUOROCHEMICALS LIMITED. THE ISSUE WOULD CONSTITUTE 27.5% OF THE FULLY DILUTED POST ISSUE CAPITAL OF THE COMPANY

THE FACE VALUE PER EQUITY SHARE IS RS.10/- EACH FOR CASH AT A PRICE OF RS.120/- EACH AND THE ISSUE PRICE IS 12 TIMES OF THE FACE VALUE.

The Issue made through the 100% Book Building Process where up to 50% of the net issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") ncluding 5% of the QIB portion that was to specifically be allotted to mutual funds)., Further, not less than 15% of the net issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the net issue to the public shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 303599 applications for 809552710 equity shares resulting in 49.06 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors and Employee and categories are as under (Before technical rejections):

Category No.of Applications

No. of Shares

Subscription

Retail Bidders 301758 101268060

17.75

Non Institutional Bidders 1538 225700800

92.31

Qualified Institutional Bidders 214 482369800

59.19

Employees 89 214050

1.07

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

Bid Price

No.of Shares

% to Total

Cumulative Total

Cumulative Total

Cumulative % to Total

100 874150 0.11 817884050 817884050 100.00
101 2650 0.00 817009900 817009900 99.89
102 1300 0.00 817007250 817007250 99.89
103 800 0.00 817005950 817005950 99.89
104 150 0.00 817005150 817005150 99.89
105 25900 0.00 817005000 817005000 99.89
106 6800 0.00 816979100 816979100 99.89
107 1400 0.00 816972300 816972300 99.89
108 1450 0.00 816970900 816970900 99.89
109 300 0.00 816969450 816969450 99.89
110 1212350 0.15 816969150 816969150 99.89
111 22600 0.00 815756800 815756800 99.74
112 5600 0.00 815734200 815734200 99.74
113 3650 0.00 815728600 815728600 99.74
114 950 0.00 815724950 815724950 99.74
115 997100 0.12 815724000 815724000 99.74
116 4900 0.00 814726900 814726900 99.61
117 9800 0.00 814722000 814722000 99.61
118 145100 0.02 814712200 814712200 99.61
119 2800 0.00

                  814567100

                  814567100

99.59

120 & Cut Off

814564300 99.59

                  814564300

                  814564300

99.59
817884050 100.00

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited ("NSE") on 15th February, 2006.

A Allocation to Employees
The Basis of Allocation to the Employees category, who have bid at cut-off or at and above the Issue Price of Rs.120/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 1.06 times. Firm allotments have been made against all applications. The total number of shares allotted in this category is 200000 Equity Shares. 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
50 4 4..82 200 0.09 50 FIRM 200
250 2 2.41 500 0.23 235 FIRM 470
500 1 1.20 500 0.23 469 FIRM 469
1000 3 3.61 3000 1.41 939 FIRM 2817
2500 1 1.20 2500 1.17 2346 FIRM 2346
5000 2 2.41 10000 4.69 4693 FIRM 9386
11800 1 1.20 11800 5.54 11075 FIRM 11075
15300 1 1.20 15300 7.18 14359 FIRM 14359
25000 1 1.20 25000 11.73 23455 FIRM 23455
26350 1 1.20 26350 12.37 24721 FIRM 24721

B. Allocation to Retail Investors
The Basis of Allocation to the Retail Investors, who have bid at cut-off or at and above the Issue Price of Rs.120/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 17.14 times. The total number of shares allotted in this category is 5705000 Equity Shares. The category-wise details of the 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
50 35940 12.29 1797000 1.84 50 1:17 105750
100 41423 14.17 4142300 4.23 50 5:43 240850
150 18011 6.16 2701650 2.76 50 7:40 15600
200 26546 9.08 5309200 5.43 50 7:30 309700
250 11285 3.86 2821250 2.88 50 7:24 164550
300 12376 4.23 3712800 3.80 50 7:20 216600
350 6700 2.29 2345000 2.40 50 9:22 137050
400 86860 29.71 34744000 35.52 50 7:15 2026750
450 1971 0.67 886950 0.91 50 11:21 51600
500 3450 1.18 1725000 1.76 50 11:19 99850
550 581 0.20 319550 0.33 50 9:14 18700
600 1279 0.44 767400 0.78 50 7:10 44750
650 398 0.14 258700 0.26 50 3:04 14950
700 753 0.26 527100 0.54 50 13:16 30600
750 829 0.28 621750 0.64 50 7:08 36250
800 43917 15.02 35133600 35.92 50 14:15 2049450

C. Allocation to Non Institutional Investors
The Basis of Allocation to the Non institutional, who have bid at and above the Issue Price of Rs.120/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 92.08 times. The total number of shares allotted in this category is 2445000 Equity Shares. 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
850 73 5.17 62050 0.03 50 2:11 650
5000 29 2.05 145000 0.06 54 FIRM 1566
10000 29 2.05 290000 0.13 109 FIRM 3161
100000 13 0.92 1300000 0.58 1086 FIRM 14118
200000 10 0.71 2000000 0.89 2172 FIRM 21720
400000 2 0.14 800000 0.36 4344 FIRM 8688
500000 4 0.28 2000000 0.89 5430 FIRM 21720
1140000 1 0.07 1140000 0.51 12380 FIRM 12380
2500000 2 0.14 5000000 2.22 27150 FIRM 54300
2600000 1 0.07 2600000 1.15 28236 FIRM 28236
6250000 1 0.07 6250000 2.78 67874 FIRM 67874
9000000 1 0.07 9000000 4.00 97738 FIRM 97738
16068750 1 0.07 16068750 7.14 174503 FIRM. 174503
16300000 3 0.21 48900000 21.72 177012 FIRM 531036

D. Allocation to QIBs
Allocation to QIBs have been done on a proportionate basis in consultation with the National Stock Exchange of India Limited. As per the SERI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (407500) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (7742500) on proportionate basis. The sactoral cap and other limits applicable to the holding of shares in company have been taken into account while allotting shares. Mutual Funds were allotted 24.04% for QIB segment and other QIB applicants were allotted 75.96% of the shares for QIB segment.

Category

FIs/Banks MFs FIIs Insurance Companies VCs Total
No. of Shares 1106815 1959435 4372671 179379 531700 8150000

The Committee of Directors of the company at ft's Meeting held at Mumbai on 16th February, 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 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 overprinted 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 National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
These details of the allocation made would be hosted on the webalte of Registrars to the Issue, Karvy Computershare Private Limited at WWW.KARVY.COM or HTTP://KCPL.KARVY.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:

Karvy Computershare Private Limited
Unit: INOX, Karvy House, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500034, Fax: 040-23311968
Emil: inox.ipo@karvy.com or mailmanager@karvy.com

TOLL FREE - HELPLINE NUMBER 1-600-3454001



Place : Mumbai
Date  : February 18, 2006

For Inox Leisure Limited
Sd/-
Rajesh D Parte
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 INOX LEISURE LIMITED.

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