MSP STEEL & POWER LTD

(Incorporated in India on November 18,1968 as Adhunik Rollers Private Limited under the Companies Act, 1965 with Registration No. 21-2739 with Registrar of Companies, West Bengal. The name of the Company was changed to MSP Steel Power Private Limited on March 7, 2003. The company subsequently became a public limited company under the name of MSP Steel & Power Limited with effect from 9th September, 2003)

Registered Office: 1, Crooked Lane, Kolkata 700069, India
Tel:+91 33 2457 0038/3940; Fax: +91 33 2458 2239, E-mail: info@mspsteel.com; Website:www.mspsteel.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 1,60,00,000 EQUITY SHARES OF RS.10/- EACH ("EQUITY SHARES") OF MSP STEEL & POWER LIMITED (THE "COMPANY"), AT PAR AGGREGATING RS.1600 LACS OF WHICH 16,00,000 EQUITY SHARES BEING 10% OF THE ISSUE SIZE TO BE COMPULSORILY ALLOTTED TO QIBs.
(Issue Price is 1 time the face value of equity shares of the Company)

The Board of Directors of MSP Steel & Power Limited wish to thank the investing public, for their response to the Issue which opened for subscription on Monday, June 20, 2005 and closed on Friday, June 24, 2005. The Issue has received 68,723 applications for 33,01,26,250 Equity Shares resulting in 22.93 times subscription. The Basis of Allotment was finalised in consultation with the Designated Stock Exchange - the Stock Exchange, Mumbai ("BSE") on Friday, July 8, 2005. The details of the Applications received in the Issue from Institutional, Retail and Non-Institutional categories (before technical rejections) are as under:

A) ALLOTMENT TO QUALIFIED INSTITUTIONAL INVESTORS
The Basis of Allotment to the Qualified Institutional Investors, who have applied at the Issue Price of Rs. 10/- per Equity Share, was finalized in consultation with the BSE. The Company has received 6 valid applications for 89,05,000 Equity Shares in this category resulting in 5.57 times subscription. The number of shares allotted to Qualified Institutional Investors is 16,00,000 on firm basis.   

B) ALLOTMENT TO RETAIL INDIVIDUAL INVESTORS        
The Basis of Allotment to the Retail Individual Investors, who have applied at the Issue Price of Rs. 10/- per Equity Share, was finalized in consultation with the BSE. The Company has received 66,408 valid applications for 15,47,75,000 Equity Shares in this category resulting in 19.35 times over-subscription. The number of shares  allotted to Retail Individual Bidders is 80,00,000. The details of category-wise allotment are given below:

C) ALLOTMENT TO NON-INSTITUTIONAL INVESTORS            
The Basis of Allotment to the Non-insfitutional Investors, who have applied at the Issue Price of Rs. 10/- per Equity Share, was finalized in consultation with BSE. The Company has received 1054 valid applications for 16,28,83,000 Equity Shares in this category resulting in 25.45 times subsc4iption. The number of shares allotted to Non-Institutional Investors is 64,00,000. A sample of category-wise allotment is as under:

Despatch of refund orders, wherever applicable, has been completed on 11th July, 2005. Credit of shares to the beneficiary accounts of the successful allottees has been completed on 11th July, 2005 subject to verification of the beneficiary details with the depositories concerned. The company has already made listing application to the BSE and NSE and other formalities regarding listing of equity shares are in the process of completion.

INVESTORS PLEASE NOTE
The details of the allotment made would also be hosted on the website of registrars to the Issue, Karvy Computershare Private Limited at http://kcpl.karvy.com
All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/Sole applicant, Serial number of the application form, number of shares applied for, and Bank Branch where the application had been lodged, at the address of the Registrars given below:

TOLL FREE - HELPLINE NUMBERS 1-600-3454001

For MSP Steel & Power Limited
Sd/-
Puranmal Agarwal
Chairman