Basis of Allotment

SPICE COMMUNICATIONS LIMITED

SPICE COMMUNICATIONS LIMITED

(Originally incorporated as a private limited company on March 28,1995 underthe name of "Modicom Network Private Limited". The Company subsequently became a deemed public company under section 43(1 A) of the Companies Act, 1956 with effect from April 1,1999 and the name of the Company was changed to "Modicom Network Limited". The name of the Company was further changed to "Spice Communications Limited" vide fresh Certificate of Incorporation dated December 3,1999. With addition of the word 'Private' in the name of the Company under Section 43A (2A) of the Companies Amendment Act, 2000, the name was again changed to "Spice Communications Private Limited" with effect from October 28,2003. On December 28,2006, the Company was converted into a public limited company and the name was changed to "Spice Communications Limited".

Registered Office: 60-D Sainik Farms, New Delhi -110062, Tel.: (9111) 6546 9839-43 Fax: (9111) 2955 2642 Corporate Office: Spice Towers, No. 75, Richmond Road, Civil Station, Bangalore-560 025 Tel: (9180) 2209 8311, Fax: (9180) 2209 8312 Head Office: D1, Sector 3, NOIDA, District Gautam Budh Nagar, Uttar Pradesh - 201301, Tel.: (91120) 436 3600/3800, Fax: (91120) 432 0467. The Company shifted teflegistered office from 13th Floor Hemkunt Tower, 98, Nehru Place, New Delhi -110019 to 60- D, Sainik Farms, New Delhi-110062 with effect from April 13,2004.) Contact Person: Ms Preeti Malhotra, Compliance Officer and Company Secretary, Tel.: (91120) 436 3600, 4363800, Fax: (91120)4363845 E-mail: complianceofficer@spiceindia.com, Website: www.spiceindia.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 113,111,111 EQUITY SHARES OF RS. 10 EACH OF SPICE COMMUNICATIONS LIMITED ("COMPANY" OR ISSUER") FOR CASH AT A PRICE OF RS. 46 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 36 PER EQUITY SHARE AGGREGATING TO RS. 5203.11 MILLION (THE ISSUE). THE ISSUE COMPRISES A NET ISSUE TO PUBLIC OF 111,111,111 EQUITY SHARES AND A RESERVATION FOR ELIGIBLE EMPLOYEES OF UP TO 2,000,000 EQUITY SHARES AT THE ISSUE PRICE. THE ISSUE WILL CONSTITUTE 16.39%OF THE FULLY DILUTED POST-ISSUE EQUITY SHARE CAPITAL OF THE COMPANY. THE NET ISSUE WOULD CONSTITUTE 16.10% OF THE FULLY DILUTED POST-ISSUE EQUITY SHARE CAPITAL THE COMPANY.
THE FACE VALUE PER EQUITY SHARE IS RS.10/-. THE ISSUE PRICE PER EQUITY SHARE IS RS. 46/- AND IT IS 4.6 TIMES THE FACE VALUE.

The Issue made through the 100% Book Building Process wherein at least 60% of the net Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was to specifically be allotted to mutual funds), further, not less than 10% of the net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the net Issue 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 1,36,746 applications for 424,98,01,404 equity shares resulting in 37.57 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual

Category No. of Applications No. of Equity Shares Subscription
Qualified Institutional Buyers 182 3906831825 58.6024
Non Institutional Investors 334 208315995 18.7484
Retail Individual Investors 136090 133109589 3.99328
Employees 140 1543995 0.77199

Final Demand
A sample of the final demand at different bid prices is as under:

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to total
41 187245 0.00 4256891415 100.00
42 372870 0.01 4256704170 100.00
43 195615 0.00 4256331300 99.99
44 364095 0.01 4256135685 99.98
45 66690 0.00 4255771590 99.97
Rs. 46 & Cut off Price 4255704900 99.97 4255704900 99.97
4256891415 100.00

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited ("BSE") on 10th July, 2007.

A. Allocation to Employees (After Technical Rejections)
The Basis of Allocation to the Employees, who have bid at cut-off or at and above the Issue Price of Rs.46 per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 0.67 times. Hence FULL and FIRM allotments have been made against all valid applications. The total number of shares allotted in this category is 1338255 Equity Shares to 105 successful applicants. The unsubscribed portion of 661745 equity shares has been added to Retail and Non-Institutional categories.

B. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at and above the Issue Price of Rs.46 per Equity Share.'was finalized in consultation with BSE. The category was subscribed to the extent of 3.83 times. The total number of shares allotted in this category is 33664206 Equity Shares (including 330873 equity shares spilled over from employees category) to 102058 successful applicants. 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
135 24140 18.44 3258900 2.53 135 9:35 837945
270 8353 14.02 4955310 3.84 135 12:23 1292625
405 9848 7.52 3988440 3.09 135 18:23 1040445
540 10198 7.79 5506920 4.27 141 FIRM 1437918
ADDITIONAL 1 11:50 2246
675 4644 3.55 3134700 2.43 176 FIRM 817344
810 2739 2.09 2218590 1.72 211 FIRM 577929
945 2783 2.13 2629935 2.04 247 FIRM 687401
1080 18137 13.85 19587960 15.19 282 FIRM 5114634
1215 914 0.70 1110510 0.86 317 FIRM 289738
1350 1395 1.07 1883250 1.46 352 FIRM 491040
1485 360 0.27 534600 0.41 388 FIRM 139680
1620 499 0.38 808380 0.63 423 FIRM 211077
1755 254 0.19 445770 0.35 458 FIRM 116332
1890 312 0.24 589680 0.46 493 FIRM 153816
2025 1065 0.81 2156625 1.67 528 FIRM 562320
2160 35269 26.94 76181040 59.06 564 FIRM 19891716

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who have bid at cut-off or at and above the Issue Price of Rs.4f per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 18.09 times. The total number of shares allotted in this category is 11441983 Equity Shares (including 330872 equity shares spilled ovei from employee category) to 293 successful applicants. The category-wise details of the Basis of Allocation (Sample) are asunder:

Category No.of
Applns.
%.to
Total
Total No. of
Shares Applied
% to
Total
No. of Shares
Allocated
Ratio Total No. of
Shares
Allocated
2295 10 3.41 22950 0.01 135 FIRM 1350
3240 1 0.34 3240 0.00 179 FIRM 179
10125 4 1.37 40500 0.02 560 FIRM 2240
27000 1 0.34 27000 0.01 1492 FIRM 1492
43200 2 0.68 86400 0.04 2388 FIRM 4776
100170 1 0.34 100170 0.05 5536 FIRM 5536
202500. 1 0.34 202500 0.10 11192 FIRM 11192
405000 1 0.34 405000 0.20 22383 FIRM 22383
800010 1 0.34 800010 0.39 44214 FIRM 44214
1215000 2 0.68 2430000 1.17 67150 FIRM 134300
5000130 1 0.34 5000130 2.42 276342 FIRM 276342
5500170 1 0.34 5500170 2.66 303978 FIRM 303978
10869525 2 0.68 21739050 10.50 600726 FIRM 1201452
10870200 1 0.34 10870200 5.25 600763 FIRM 600763
13804290 2 ,0.68 27608580 13.34 762921 FIRM 1525842
21600000 1 0.34 21600000 10.43 1193711 FIRM 1193711
21739185 1 0.34 21739185 10.50 1201401 FIRM 1201401

D.AIIocatlon to QIBs
Allocation to QIBs has been 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 (33,33,334) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (6,33,33,333) on proportionate basis.

Category Fls/Banks MFs Flls VCs ICs Total
No.of Shares 1952465 11184769 51092453 17635 2419345 66666667

The Committee of Directors of the company at it's Meeting held at New Delhi on 10th July, 2007 has approved the basis of allocation of shares and has allotted the shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices (where applicable) have 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 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 fortrading on the Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website 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: SPICE Plot No. 17 to 24, Vitharao Nagar,
Hitech City Road, Madliapur Hyderabad - 500081
Fax: 040-23420814 Email: einward.ris@karvv.com

TOLL FREE - HELPLINE NUMBER 1-800-3454001

 

Place: New Delhi
Date : 14July,2007

For Spice Communications Limited
Sd/-
Preeti Malhotra
Company Secretary & Compliance Officer

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 SPICE COMMUNICATIONS LIMITED.

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