Basis of Allotment

SOLAR EXPLOSIVES LIMITED

SOLAR EXPLOSIVES LIMITED

(Incorporated on February 24, 1995 under the Companies Act, 1956 as a limited liability company. The registered office of our company was changed from Dhakate Building, Fawara Chowk Gandhi Bagh, Nagpur- 440 002, to its current address 11, Zade Layout, Bharat Nagar, Nagpur-440 033 with effect from June 10, 2004)

Registered and Corporate Office: 11, Zade Layout, Bharat Nagar, Nagpur- 440 033, Maharashtra, India, Tel: (+91712) 256 1000 Fax: (+91712) 256 0202; e mail:investor.relations@solarexplosives.com Website: www.solarexplosives.com Compliance Officer: Mr. Nilesh Panpaliya, e mail:nilesh@solarexplosives.com

BASIS OF ALLOCATION

Public Issue of 44,00,000 Equity Shares of Rs.10/-each for cash at a price of Rs.190 per Equity Share aggregating to
Rs. 8360 lakhs (hereinafter referred to as "the Issue") by Solar Explosives Limited ("the Company" or "the Issuer"). The Face Value of the Equity Shares is Rs.10 each. The Issue included a reservation of 60,000 Equity Shares for subscription by Eligible Employees of the Company. The Net Issue to the Public was 43,40,000 Equity Shares. The Net Issue constitutes 25.05% of the fully diluted post issue paid-up capital of the Company.

The Issue was made through the 100% Book Building process wherein up to 50% of the Issue was allocated to Qualified Institutional Buyers ("QIBs") on a proportionate basis. Out of the portion available for allocation to the QIBs, 5% was available for allocation to Mutual Funds. Mutual Fund applicants were also eligible for proportionate allocation under the balance available for the QIBs. Further, not less than 15% of the Issue was available for allocation on a proportionate basis to Non- Institutional Bidders and not less than 35% of the Issue was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 45267 applications for 61119530 equity shares resulting in 13.89 times oversubscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Investor categories are as under:

Category No. of Applications No. of Shares Subscription
Qualified Institutional Buyers 78 43960680 20.26
Non Institutional Investors 132 7223400 11.10
Retail Investors 44997 9858770 6.49
Employee 60 76680 1.28

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
170 198390 0.2941 67455510 100.0000
171 1830 0.0027 67257120 99.7059
172 1170 0.0017 67255290 99.7032
173 60 0.0001 67254120 99.7014
174 90 0.0001 67254060 99.7014
175 41340 0.0613 67253970 99.7012
176 1350 0.0020 67212630 99.6399
177 720 0.0011 67211280 99.6379
178 900 0.0013 67210560 99.6369
179 22500 0.0334 67209660 99.6355
180 1847100 2.7382 67187160 99.6022
181 120 0.0002 65340060 96.8639
182 690 0.0010 65339940 96.8638
183 1200 0.0018 65339250 96.8627
184 840 0.0012 65338050 96.8610
185 2727390 4.0432 65337210 96.8597
186 150 0.0002 62609820 92.8165
187 1073400 1.5913 62609670 92.8162
188 120 0.0002 61536270 91.2250
189 810 0.0012 61536150 91.2248
190 52370010 77.6364 61535340 91.2236
9999 9165330 13.5872 9165330 13.5872
Total 67455510

The Basis of Allotment was finalized in consultation with Bombay Stock Exchange Limited ("BSE") on the 24th March, 2006

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.190/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 6.38413 times. The total number of shares allotted in this category is 1519007 Equity Shares. The categorywise details of the Basis of Allocation are as under:

Category No. of
Applns.
% to
total
Total No.of
Shares applied
% to
total
No. of Shares
allocated per Allotee
Ratio Tots No. of
Shares allocated
30 5050 11.43 151500 1.56 30 1:5 30300
60 4348 9.84 260880 2.69 30 31:100 40830
90 3536 8 318240 3.28 30 47:100 49860
120 3059 6.92 367080 3.79 30 63:100 57810
150 2385 5.4 357750 3.69 30 39:50 56130
180 1492 3.38 268560 2.77 30 47:50 42060
210 1875 4.24 393750 4.06 33 FIRM 61875
240 12810 28.99 307440 31.7 3 FIRM 473970
270 532 1.2 143640 1.48 42 FIRM 22344
300 788 1.78 236400 2.44 47 FIRM 37036
330 157 0.36 51810 0.53 52 FIRM 8164
360 210 0.48 75600 0.78 56 FIRM 11760
390 157 0.36 61230 0.63 61 FIRM 9577
420 116 0.26 48720 0.5 66 FIRM 7656
450 271 0.61 121950 1.26 70 FIRM 170
480 267 0.6 128160 1.32 75 FIRM 20025
510 7133 16.14 3637830 37.51 80 FIRM 570640

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.190/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 11.09447 times. The total number of shares allotted in this category is 650993 Equity Shares. The category-wise details of the Basis of Allocation are as under:

Category No. of Applns.total % to Shares applied Total No.of total % to allocated per Allotee No. of Shares Ratio Total No. of Shares allocated
540 11 8.4 5940 0.08 49 FIRM 539
10500 9 6.87 94500 1.31 946 FIRM 8514
26310 3 2.29 78930 1.09 2371 FIRM 7113
36000 2 1.53 72000 1 3245 FIRM 6490
42120 2 1.53 84240 1.17 3797 FIRM 7594
78930 2 1.53 157860 2.19 7115 FIRM 14230
105240 1 0.76 105240 1.46 9486 FIRM 9486
137880 1 0.76 137880 1.91 12428 FIRM 12428
197370 1 0.76 197370 2.73 17790 FIRM 17790
261000 1 0.76 261000 3.61 23525 FIRM 23525
263130 1 0.76 263130 3.64 23717 FIRM 23717
264000 1 0.76 264000 3.66 23796 FIRM 23796
396000 2 1.53 792000 10.97 35694 FIRM 71388
1052700 1 0.76 1052700 14.58 94878 FIRM 94878
2631570 1 0.76 2631570 36.44 237183 FIRM 237183

C.Allocation to QIBs

Category FIs/Banks MFs FIIs Insurance Companies Total
368390 878484 923126 2170000

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 25th March, 2006 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, Pannalal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai 400 078
Tel: +9122 2596 0320-28, Fax: +9122 2596 0329 Email: solar@intimespectrum.com
Contact Person: Mr.Vishwas Attavar

Place: Mumbai
Date:28th March, 2006

For SOLAR EXPLOSIVES LIMITED
Sd/
Chairman
Mr. Satyanarayan Nuwal

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 SOLAR EXPLOSIVES LIMITED.
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