NECTAR LIFESCIENCES LIMITED

(Incorporated as Surya Medicare Limited, a public limited company under the Companies Act, 1956 on June 27, 1995. On March 26, 2004 our name was changed to Nectar Lifesciences Limited.)

Registered Office: Village Saidpura, Tehsil Derabassi, Dist. Patiala(Punjab)
Corporate Office: 110, Industrial Area, Phase-1, Chandigarh - 160 002

Tel: +91 172 2658317, 2655166; Fax: +91 172 2655377 E-mail: ipo@neclife.com; website: http://www.neclife.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 3,870,000 EQUITY SHARES OF RS.10 EACH AT A PRICE OF RS.240/- PER EQUITY SHARE FOR CASH AT A PREMIUM AGGREGATING RS.928.80 MILLION(REFERRED TO AS THE "ISSUE"), THE ISSUE CONSTITUTES 26% OF THE FULLY DILUTED POST ISSUE PAID-UP EQUITY CAPITAL OF NECTAR LIFESCIENCES LIMITED ("ISSUER" OR "THE COMPANY")
THE FACE VALUE PER EQUITY SHARE IS RS.240/- EACH AND THE ISSUE PRICE IS 24 TIMES OF THE FACE VALUE.

The Issue made through the 100% Book Building Process wherein 50% of the Issue to the Public was to be allocated on a discretionary basis to Qualified Institutional Buyers ("QIBs")., 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 96896 applications for 59993730 equity shares resulting in 15.50 times subscription. The details of the application received in the Issue from Retail, Non Institutional and Qualified Institutional Investors categories are as under:

FINAL DEMAND
A sample of the final demand at different bid prices is as under:

The Basis of Allotment was finalized in consultation with The National Stock Exchange of India Limited ("NSE") on July 11, 2005.

A.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.240/- per Equity Share, was finalised in consultation with NSE. The category was subscribed 10.97 times, The total number of shares allotted in this category is 1354516 Equity Shares.The category-wise details ofthe Basis of allocation are as under:

B. Allocation to Non Institutional Investors                    
The Basis of Allocation to the Non Institutional, who have bid at cut-off or at and above the Issue Price of Rs.240/- per Equity Share, was finalised in consultation with NSE. The category was subscribed 14.24 times, The total number of shares allotted in this category is 580484 Equity Shares.The category-wise details ofthe Basis of allocation are as under:

C.Allocation to QIBs

The Committee of Directors for IPO of the company at it's Meeting held at Chandigarh on 11th July, 2005 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

The Refund Orders will be dispatched by 13th July, 2005 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 over-printed 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 The National Stock Exchange of India Limited and the Stock Exchange, Mumbai within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of allocation made would be hosted on the website of Registrarss 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 : Nectar Lifesciences, Karvy House, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500034,
Fax: 040-23311968 *Email: nectar_ipo@karvy.com or mailmanager@karvy.com

TOLL FREE - HELPLINE NUMBERS 1-600-3454001

For Nectar Lifesciences Limited
Sd/-
Sunder Lal
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 Nectar Lifesciences Limited