Basis of Allotment

BANNARI AMMAN

BANNARI AMMAN
SPINNING MILLS LIMITED

(Originally incorporated as Shiva Textilies(CBT) Limited on July 10, 1989 under the Companies Act, 1956 and was issued certificate for commencement of Business on September 14, 1989. The named of the Company was changed to "Bannari Amman spinning Mills Ltd." On October11,1991. The registration number of the company is 181-002476)

      Registered Office: 252, Mettupalayam Road, Coimbatore 641 043. Tel.:+91-422-243 5555 Fax : +91-422-243 0233
Contact Person: Mr. Govind M. Joshi, CFO, Company Secretary& Compliance Offier, E-mail: govindjoshi@vsnl.net. Website: www.bannaritex.com

              BASIS OF ALLOCATION

PUBLIC ISSUE OF 7,003,019 EQUITY SHARES OF FACE VALUE RS.10/- EACH AT A PRICE OF RS. 135 FOR CASH AT A PREMIUM AGGREGATING TO RS. 945.41 MILLION (HERE IN AFTER REFERRED TO AS THE "ISSUE"). THE ISSUE WOULD CONSTITUE 44.45% OF THE POST ISSUE PAID-UP CAPITAL OF BANNARI AMMAN SPINNING MILLS LIMITED.

THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 AND THE PRICE IS 13.5 TIMES OF THE FACE VALUE.

The issue was made through a 100% Book Building Process wherein upto 50% of the issue was to be allocated on a discretionary basis to    qualified institutional Buyers, not less than 15% of the issue was to be allocated to Non-institutional investors and not less than 35% of the issue was to be allocated to Retail individual Investors on a proportionate basis, subject to valid bids being received at or above the issue price.

BASML received 82187 bids for 46350065 equity Shares resulting in 6.6214 times subscription. The details of the application received in the issue from Retail, Non-institutional and Qualified Institutional categories is as under(before technical/multiple rejections):

Category No. of Applications No of Shares bid* No.of times Subscribed**
Retail Individual Bidders 81,928 2,43,40,865 9.9350
Non Institutional Bidders 216 70,46,800 6.7112
Qualified Institutional Bidders 43 1,49,62,400 4.2749
Total 82,187 4,63,50,065 6.6214

*Including bids received at cut off price** After eliminating cheque returns but before elimnating technical/multiple rejections.

Final Demand

A Sample of the final demand at different prices is as under:

Bid Price

No. of Shares

% of Total

Cumulative Total

Cumulative %

115

254000

0.53%

48331600

100.00

116

400

0.00%

48077600

99.474

117

650

0.00%

48077200

99.474

118

3200

0.01%

48076550

99.472

119

300

0.00%

48073350

99.466

120

132100

0.27%

48073050

99.465

121

450

0.00%

47940950

99.192

122

350

0.00%

47940500

99.191

123

250

0.00%

47940150

99.190

124

1500

0.00%

47939900

99.190

125

300500

0.62%

47938400

99.186

126

1200

0.00%

47637900

98.565

127

250

0.00%

47636700

98.562

128

250

0.00%

47636450

98.562

129

300

0.00%

47636200

98.561

130

98650

0.20%

47635900

98.561

131

150

0.00%

47537250

98.356

132

900

0.00%

47537100

98.356

133

1900

0.00%

47536200

98.354

134

300

0.00%

47534300

98.350

135

23635800

48.90%

47534000

38.350

135 & at cut Off

23898200

49.45%

23898200

49.446

Total

48331600

100.0000

The Basis of Allotment was finalised in consultation with National Stock Exchange of india Limited ("NSE") on November8, 2005.

A) Allocation Retail individual Bidders

The Basiss of Allocation to the Retail Individual Bidders, who have bid at cut-off or at issue price of Rs,135/- per Equity Shares, was finalized in consultation with NSe.The category was overscribed 9,74380 times. The total number of shares allotted in this category-wise 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
in the category

Ratio

Total No. of
Shares allocated

50

8523

10.63

426150

1.79

43736

3:29

44100

100

10276

12.82

1027600

4.30

105462

6:29

106300

150

4254

5.31

  638100

2.67

65488

9:29

66000

200

7545

9.41

1509000

6.32

154868

12:29

156100

250

2532

3.16

   633000

2.65

64964

15:29

65500

350

31032

38.71

10861200

45.50

1114679

53:74

1111300

500

579

0.72

       289500

1.21

29711

FIRM

29529

700

8962

11.18

  6273400

26.28

643834

FIRM

645264

B) Allocation to Non Institution Bidders

The Basis of Allocation to the Non Insititutional Investors, who have bid for at or above Issue Price of Rs, 135/- per Equity Share, was finalized in consultation with NSE. The category was oversubscribed 6,69000yimes. The total number of Shares allotted in this category is 1050000 Equity Sahres. A Sample of Category-wise 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

Ratio

Total No.of
Shares allocated

750

14

7.11

10500

0.15

1570

FIRM

1568

1000

23

11.73

23000

0.33

3438

FIRM

3427

2000

9

4.59

18000

0.26

2691

FIRM

2691

7500

5

2.55

37500

0.53

5605

FIRM

5605

10000

15

7.65

150000

2.14

22422

FIRM

22425

20000

8

4.08

160000

2.28

23916

FIRM

23920

40000

2

1.02

80000

1.14

11958

FIRM

11958

50000

1

0.51

50000

0.71

7474

FIRM

7474

74000

3

1.53

222000

3.16

33184

FIRM

33183

100000

5

2.55

500090

7.12

74738

FIRM

74740

130000

1

0.51

130000

1.85

19432

FIRM

19432

200000

1

0.51

200000

2.85

29895

FIRM

29895

370000

4

2.04

1480000

21.07

221225

FIRM

221228

500000

1

0.51

500000

7.12

74739

FIRM

74739

1850000

1

0.51

1850000

26.34

276534

FIRM

276534

c) Allocation to Qualified Institutional Bidders:

Category Fls/Banks MFs Flls ICs VCs Total
No of Shares 224000 724000 536000 3500000

The Boared Of Directors of Bannari Amman Spinning Mills Limited at its Meeting held at Coimbatore on November 8, 2005 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

The despatch of Refund Orders has been completed by November 9,2005 to the address of the investors as registered with the depositories. The refund orders have been printed with the Bank Mandate details as registered, if any with the depositores. The shares alocated to the successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The company has submitted the listing application on November10,2005 abd is taking steps to get the Equity Sahres admitted for trading on the Bombay Stock Exchange Limited and on the National Stock Exchange of india Ltd with in seven working days from the date of approval of the basis of allocation.

INVESTORS PLESE NOTE

The details of the allocation made has been hoted on the website of registrars  to the issue, Intime Spectrum Registry Limited at www.Intimespectrum.com

All future correspondence in this regard may kindly be addressed to the Registeres to the issue quoting full name of the First/Sole applicant, Serial number of the bid-cum-applicationform, numberof shares bid for, name of the member of the syndicate and place where the bid was submitted and payment details at the addresss given below:

Intime Spectrum Registry Limited

C-13, Pannalal Silk Mills Compound, Kantial Maganlal Industrial Estate,
LBS Marg, Bhandup(W), Mumbai 400 078 Tel :5555 5491-94 Fax: 5555 5499
Web site: www.intimespectrum.com Email: basmi@intimespecturm.com



Place:
Coimbatore
Date: November11,2005


for Bannnari amman Spinning Mills Limited]
sd/-
Govind Joshi (CFO-Company Secretary)

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 BANNARI AMMAN SPINNING MILLS LIMITED.

 

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