EVEREST KANTO CYLINDER LIMITED

(Incorporated on 24th June 1978 under the name Everest Kanto Cylinder Private Limited with the Registrar of Companies,
Maharashtra, as a private company. Converted into a public limited company and received fresh Certificate of Incorporation consequent to change of name to Everest Kanto Cylinder Limited on June 7, 2005)
Registered Office: 501, Raheja Centre, 214, Free Press Journal Marg, Nariman Point, Mumbai 400 021 (Previous Registered Office: On incorporation: 10, Marine Chambers, 43, New Marine Lines, Mumbai 400020, in 1983 shifted its registered office to 167, Atlanta, Nariman Point, Mumbai 400 021) Tel: +9122 2285 0777 / 78,+9122 2284 4462 / 4541, Fax: +9122 2287 0718 / 20,
Email: ekc®vsnl.com, Web site:www.everestkanto,com

BASIS OFALLOCAIION

Public Issue of 56,25,031 Equity Shares of Rs 10/- each for cash at a price of Rs. 160 (including premium of Rs. 150 per Equity Share, aggregating Rs. 9000.05 lace (hereinafter referred to as "the Issue") by Everest Kanto Cylinder Ltd.(hereinafter referred to as "Everest" or the "Company" or the "Issuer"). The issue would constitute 31.915% of the fully diluted post issue paid-up Equity Share capital of the Company.
The Issue was made through the 100% Book Building Process, wherein 5% of the Issue was reserved for the Eligible Employees of the Company, up to 50% of the Net Issue to the Public was allocated on a discretionary basis to Qualified Institutional Buyers ("QIBs"). Further, not less than 15% of the Net Issue to the Public was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue to the Public was 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 76,435 applications for 87,619,815 equity shares resulting in 15.57 times oversubscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Investor 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 Bombay Stock Exchange Limited ("BSE") on the 7'° December, 2005. A Allocation to Retail Investors '

A. Allocation of 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.160/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 9.65 times. The total number of shares allotted in this category is 1871619 Equity Shares. The category-wise details of the Basis of Allocation are as under:

B.Allocation to Non Institutional Investors

The Basis of Allocation to the Non Institutional bidders, who have bid at and above the Issue Price of Rs.160/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 19.96 times. The total number of shares allotted in this category is 801577 Equity Shares. The category-wise details of the Basis of Allocation are as under:

C. Allocation to QIBs

D. Allocation to Employees

All employee application received firm allotment

The Committee of Directors for IPO of the company at it's meeting held at Bombay on 7"' December, 2005 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

The Refund Orders will be 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 will be 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 Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

The details of the allocation made would also be hosted on the website of Registrar to the Issue, INTIME SPECTRUM REGISTRY LIMITED at www.intimespectrum.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 bid-cum-application form, no. of shares bid for, name of the member of the syndicate and place where the bid was submitted and the payment details at the address given below.

INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalat Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai 400 078
Tel: +91 22 5555 5491, Fax: +91 22 5555 5499 Email: everestkanto@intimespectrum.com
Contact Person: Mr. Vishwas Attavar

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 EVEREST KANTO CYLINDER LIMITED.