Basis Of Allotment

(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

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):

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:

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:

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.

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.

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

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.