Basis of Allotment

TRANSWARRANTY FINANCE LIMITED

TRANSWARRANTY FINANCE LIMITED

(Originally incorporated as Trans Warranty Finance Limited on August 09,1994 vide registration no. 11-80220 and received the Certificate for Commencement of Business on August 30,1994 from the Registrar of Companies, Maharashtra, Mumbai, The name of our Comapany was changed to Transwarranty Finance Limited. w.e.f. July 08, 2005.)
Registered and Corporate Office : 403, Regent Chambers, Nariman Point, Mumbai - 400021.
Tel No: +91 22 2204 7965/66/6630 6090/91; Fax No : +91 22 6630 6655;
Website: www.transwarranty.com; Email: ibank@transwarranty.com
Contact Parson: Mr. Sreedhar Hirimbi, Company Secretary and Compliance Officer

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 6,000,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH OF TRANSWARRANTY FINANCE LIMITED (HEREINAFTER REFERRED TO AS THE "COMPANY" OR "ISSUER") AT A PRICE OF RS. 52 FOR CASH AT A PREMIUM OF RS. 42 AGGREGATING RS. 312 MILLION (HEREINAFTER REFFRRED TO AS THE ISSUE") COMPRISING A RESERVATION OF 100,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH FOR ELIGIBLE EMPLOYEES ON A COMPETITIVE BASIS AT A PRICE OF RS. 52 FOR CASH AT A PREMIUM OF RS. 42 AGGREGATING RS. 52 MILLION AND NET ISSUE TO PUBLIC OF 58,00,000 EQUITY SHARES OF FACE VALUE RS. 10/-EACH (HEREINAFTER REFERRED TO AS THE "NET OFFER TO THE PUBLIC"). THE ISSUE WOULD CONSTITUTE 42.86% OF THE POST ISSUE PAID UP CAPITAL OF THE COMPANY.

THE ISSUE PRICE OF THE EQUITY SHARES IS RS. 52 PER EQUITY SHARE WHICH IS 5.2 TIMES THE FACE VALUE OF THE EQUITY SHARES.

This Issue is being made through the 100% Book Building Process where in at least 50% of the Net Issue shall be allocated) on a proportionate basis to QIBs as specified in the Disclosure and Investor Protection Guidelines, 2000 of the Securities and Exchange Board of India ("SEBI") (including 5% of the QIBs' portion that would be specifically reserved only for Mutual Funds and Mutual Fund applicants shal also be eligible for proportionate allocation under the balance available for QIBs). Further, upto 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and upto 35% of the Net 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 Board of Directors of Transwarranty Finance Limited wish to thank the investing public for their response to the Issue which opened for subscription on January 23,2007 and closed on February 02,2007. The Issue received 11,562 applications for 91,16,640 Equity Shares resulting in 1.5194 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers ("QIBs"), Non-Institutional Bidders, Retail Individual Bidders and Employee categories are as under:

Category No. of Applications No. ol Shares bid Subscription
Qualified Institutional Buyers 11 3031680 1.0277
Non-Institutional Bidders 39 1521960 1.7197
Retail Individual Bidders 11487 4537320 2.1972
Employee 25 25880 0.2568

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

Bid Price No. of
Equity Shares
% to Total Cumulative Total Cumulative % to Total
48 108240 1.1255 9817160 100.0000
49 5880 0.0611 9508920 98.8745
50 25320 0.2633 9503040 98.8134
51 7440 0.0774 9477720 98.5501
52 23640 0.2458 9470280 98.4727
53 6120 0.0636 9446640 98.2269
54 1440 0.0150 9440520 98.1633
55 4864800 50.5846 9439080 98.1483
9999 4574280 47.5637 4574280 47.5637

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange-Bombay Stock Exchange Limited ("BSE")  on Thursday, February 14, 2007.

A) Allocation to Employees

The Basis of Allotment to the Employee Category was finalized in consultation with BSE. The Company received 25 valid applications for 25,680 Equity Shares in this category resulting in 0.25680 times subscription. The total number of Equity Shares allotted in this category Is 25,680. The unsubscribed portion of 74320 was added to the Retail and HNI Category in the ratio of 1:1. The category wise details of the Basis of Allotment are given below:

Category No. of Applns. %to Total Total No. of Equity Shares applied %to Total No. of Equity Shares allocated Ratio Total No. of Equity Snares allocated
120 5 20 600 2.34 120 FIRM 600
360 4 16 1440 5.61 360 FIRM 1440
480 1 4 480 1.87 480 FIRM 480
600 1 4 600 2.34 600 FIRM 600
840 1 4 840 3.27 840 FIRM 840
1200 2 8 2400 9.35 1200 FIRM 2400
1440 1 4 1440 5.61 1440 FIRM 1440
1680 1 4 1680 6.54 1680 FIRM 1680
1800 9 36 16200 63.08 1800 FIRM 16200

B) Allocation to Retail investors
The Basis of Allotment to the Retail Individual Bidders was finalized in consultation with BSE. The Company received 11,138 valid applications for 44,18,760 Equity Shares in this category resulting in 2.10201 times subscription. The total number of Equity Shares allotted in this category is 21,02,208 (Including 37160 Shares spill over from Employee Category). The category wise details of the Basis of Allotment are given below:

Category No. of Applns. %to Total Total No. of Equity Shares applied Total No. of Equity Shares allocated Ratio Total No. of Equity Shares allocated
120 5003 44.92 600360 13.59 120.00 10:21 286080
240 2232 20.04 535680 12.12 120.00 19:20 254880
360 912 8.19 328328 7.43 17T.00 FIRM 155952
480 597 5.36 286560 6.49 228.00 FIRM 136116
600 440 3.95 264000 5.97 285.00 FIRM 125400
720 135 1.21 97200 2.20 343.00 FIRM 46305
840 770 6.91 646800 14.64 400.00 FIRM 308000
960 162 1.45 155520 3.52 457.00 FIRM 74034
1080 42 0.38 45360 1.03 514.00 FIRM 21588
1200 76 0.68 91200 2.06 571.00 FIRM 43396
1320 12 0.11 15840 0.36 628.00 FIRM 7536
1440 18 0.16 25920 0.59 685.00 FIRM 12330
1560 14 0.13 21840 0.49 742.00 FIRM 10388
1680 9 0.08 15120 0.34 799.00 FIRM 7191
1800 714 6.41 1285200 29.09 856.00 FIRM 611184
1920 2 0.02 3840 0.09 914.00 FIRM 1828

C) Allocation to Non Institutional Bidders
The Basis of Allotment to the Non Institutional Bidders was finalized in consultation with BSE. The Company received 37 valid applications for 15,15,360 Equity Sharos in this category resulting in 1.64327 times subscription. The number of shares allotted to Non-Institutional Bidders is 9,22,112 (Including 37160 Shares spill over from Employee Category).The category wise details of the Basis of Allotment are given below.

Category No. Of
Applns.
%to Total Total No. of
Equity Shares applied
% to Total No. of
Equity Shares allocated
Ratio Total No. of
Equity Shares allocated
1920 5 13.51 9600 0.63 1168 FIRM 5840
2040 2 5.41 4080 0.27 1242 FIRM 2484
2400 4 10.81 9600 0.63 1461 FIRM 5844
2760 1 2.70 2760 0.18 1680 FIRM 1680
3600 2 5.41 7200 0.48 2191 FIRM 4382
3960 1 2.70 3960 0.26 2410 FIRM 2410
6000 1 2.70 6000 0.40 3651 FIRM 3651
9000 2 5.41 18000 1.19 5477 FIRM 10954
9600 1 2.70 9600 0.63 5842 FIRM 5842
10080 1 2.70 10080 0.67 6134 FIRM 6134
12000 2 5.41 24000 1.58 7303 FIRM 14606
15000 3 8.11 45000 2.97 9128 FIRM 27384
18240 5 13.51 91200 6.02 11100 FIRM 55500
24000 1 2.70 24000 1.58 14605 FIRM 14805
25080 1 2.70 25080 1.66 15262 FIRM 15262
43200 2 5.41 86400 5.70 26289 FIRM 52578
48000 1 2.70 48000 3.17 29210 FIRM 29210
181800 1 2.70 181800 12.00 110822 FIRM 110622
909000 1 2.70 909000 59.99 553124 FIRM 553124

D. Allocation to QIBs

Allocation to QIBs was done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (1,47,500) and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available shares (28,02,500) on proportionate basis.

Category FIs/Banks MFs FIIS Insurance Companies VCs Total
No. of Shares 584467 583396 1782137 - - 2950000

The Board of Directors at a meeting held at Mumbai on February 14, 2007 approved the Basis of Allotment of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants.
The refund orders / allotment advice/notices has been dispatched to the addresses of the investors as registered with the depositories, in case the same is not received within ten days, investors may contact tie Registrar to the Issue 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 the 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 the National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from file date of approval of Basis of Allotment.

INVESTORS PLEASE NOTE
These details of file allocation will also be available on the website of the Registrar to the Issue, Intime Spectrum Registry Limited, at http://www.Intimespectrum.com
All future correspondence in Ms regard may kindly be addressed to the Registrar to the issue quoting the full name of the First/Sole applicants, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where me bid was submitted and payment details at the address given below :

Intime Spectrum Registry Limited
C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai 400078
Phone:(91-22) 2596 0320; Fax: (91-22) 2596 0329
Email: transwarrantyipo@intimespectrum.com, Website: www.intimespectrum.com


Place: Mumbai
Date: February 17, 2007

For Transwarranty Finance Limited
Sd/-
Managing Director

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUfTY SHARE ON LISTING OR THE PROSPECTS OF TRANSWARRANTY FINANCE LIMITED.

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