Basis of Allotment

MSP STEEL

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:

Category No. of Applications No. of Shares
Qualified Institutional Investors 6 8905000
Retail Individual Investors 67653 158228350
Non-Institutional Investors 1064 162992900

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:

Category No.of Appins. % to Total No. of  Shares Applied % to Total No.of Shares Allocated Ratio Total Shares Allocated
500 15738 23.70 7869000 5.08 500 1:19 414000
1000 12568 18.93 12568000 8.12 500 3:29 650600
1500 4676 7.04 7014000 4.53 500 7:45 363500
2000 6277 9.45 12554000 8.11 500 8:39 644000
2500 2685 4.04 6712500 4.341 500 10:39 344000
3000 1814 2.73 5442000 3.52 500 12:39 279000
3500 646 0.97 2261000 1.46 500 17:47 117000
4000 1536 2.31 6144000 3.97 500 16:39 315050
4500 16259 24.48 73165500 47.27 500 20:43 3781000
5000 4209 6.34 21045000 13.60 500 27:52 1092500

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:

Category No. of Appins. % to Total No. of Shares Applied % to Total No.of  Shares Allocated Ratio Total Shares Allocated
5500 42 3.98 231000 0.14 500 3:7 9000
6000 23 2.18 138000 0.08 500 3:7 5000
6500 13 1.23 84500 0.05 500 1:2 3500
7000 17 1.61 119000 0.07 500 5:9 4500
7500 14 1.33 105000 0.06 500 3:5 4000
8000 15 1.42 120000 0.07 500 2:3 5000
8500 6 0.57 51000 0.03 500 2:3 2000
9000 17 1.61 153000 0.09 500 3:4 6500
9500 32 3.04 304000 0.19 500 3:4 12000
10000 231 21.92 2310000 1.42 500 7:9 90000
10500 14 1.33 147000 0.09 500 6:7 6000
11000 9 0.85 99000 0.06 500 8:9 4000
20000 68 6.45 1360000 0.83 786 FIRM 53448
50000 82 7.78 4100000 2.52 1965 FIRM 161130
100000 75 7.12 7500000 4.60 3929 FIRM 294675
200000 12 1.14 2400000 1.47 7858 FIRM 94296
300000 8 0.76 2400000 1.47 11788 FIRM 94304
500000 10 0.95 5000000 3.07 19646 FIRM 196460
1500000 4 0.38 6000000 3.68 58938 FIRM 235752
2000000 5 0.47 10000000 6.14 78584 FIRM 392920
5000000 1 0.09 5000000 3.07 196460 FIRM 196460
7000000 1 0.09 7000000 4.30 275044 FIRM 275044
9000000 1 0.09 9000000 5.53 353628 FIRM 353628
11000000 1 0.09 11000000 6.75 432212 FIRM 432212
14300000 1 0.09 14300000 8.78 561937 FIRM 561937

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:

LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE
MICROSEC INDIA LTD
Azimganj House,
2nd Floor,
7, Camac Street,
Kolkata - 700 017
Ph: 91-33-2282 9330
Fax: 91-33-2282 9335
E-mail: msp@microsec.co.in
KARVY COMPUTERSHARE PVT LTD
Karvy House, 46,
Avenue 4 Street No.1, Banjara Hills,
Hyderabad 500 034
Toll Free No.: 1-600-334001;
Fax: +91 40 2331 1968,
E-mail : mspipo@karvy.com
Website: www.kcpl.karvy.com

TOLL FREE - HELPLINE NUMBERS 1-600-3454001

Place : Kolkata
Date : 12th July, 2005

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

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