SHRI RAMRUPAI BALAJI STEELS LIMITED
(JAI BALAJI GROUP)

(Incorporated in India on May 06, 2002 as Shri Ramrupai Balaji Steels Private Limited under the Companies Act, 1956 with Registration No.21-94606 with Registrar of Companies, West Bengal. The Company subsequently became a public company under the name of Shri Ramrupai Balaji Steels Limited with effect from Nov.26, 2002)

Registered Office: 5, Bentinck Street, 1st Floor, Kolkata - 700 001, India.
Tel:.+91 33 2248-8173/9808, Fax: +91 33 2243-0021. Email: jbalaji@vsnl.net, website: www.jaibalajigroup.com

BASIS OF ALLOCATION

Public Issue of 2,00,00,000 Equity Shares of Face Value Rs.10 each at a price of Rs.22/- for cash aggregating Rs.4400 Lacs (hereinafter referred to as the "Issue"), including net offer to the public of 1,90,00,000 Equity Shares of Face Value Rs.10 each at a price of Rs.22/- for cash aggregating Rs.4180 Lacs (hereinafter referred to as the "Net Offer to the Public") The Issue would constitute 30.31% of the post issue paid up capital of the Company. The Face Value of the Equity Shares is Rs.10 and the Issue Price is 2.2 times the Face Value.

The Issue is being made through a 100% Book Building Process wherein not more than 50% of the Net Offer to the Public (subject to mandatorily minimum 10%) shall be allocated on a discretionary basis to Qualified Institutional Buyers, not less than 25% of the Net Offer to the Public would be allocated to Non-Institutional Investors and not less than 25% of the Net Offer to the Public would be allocated to Retail Investors on a proportionate basis, subject to valid bids being received from them at or above the Issue Price.

The Board of Directors of Shri Ramrupai Balaji Steels Limited wish to thank the investing Public, for their response to the Issue which opened for subscription on Friday, July 8, 2005 and closed on Thursday, July 14, 2005.

The Issue has received 50,218 applications for 18,46,95,000 Equity Shares resulting in 9.23 times subscription. The Basis of allotment was finalised in consultation with the Designated Stock Exchange - The National Stock Exchange of India Limited ("NSE") on Friday, July 29, 2005. The details of the applications (valid) received in the Issue from all categories are as under:

Final Demand

A sample of the final demand at different bid prices is 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.22/- per Equity Share, was finalized in consultation with the NSE. The Company has received 12 valid applications for 4,98,99,500 Equity Shares in this category resulting in 5.25 times subscription. The number of shares allotted to Qualified Institutional Investors is 95,00,000 on discretionary basis.

B) ALLOTMENT TO NON-INSTITUTIONAL INVESTORS
The Basis of Allotment to the Non-Institutional Investors, who have applied at the Issue Price of Rs. 22/- per Equity Share, was finalized in consultation with NSE. The Company has received 713 valid applications for 7,34,80,250 Equity Shares in this category resulting in 15.47 times subscription. The number of shares allotted to Non-Institutional Investors is 47,50,000. A sample of category-wise allotment is as under:

C) ALLOTMENT TO RETAIL INDIVIDUAL INVESTORS
The Basis of Allotment to the Retail Individual Investors, who have applied at the Issue Price of Rs. 22/- per Equity Share, was finalized in consultation with the NSE. The Company has received 49,479 valid applications for 6,02,57,750 Equity Shares in this category resulting in 12.69 times over subscription. The number of shares allotted to Retail Individual Bidders is 47,50,000.The details of category-wtse allotment are given below:

D) ALLOTMENT TO EMPLOYEES
The Basis of Allotment to the Employees of Shri Ramrupai Balaji Steels Limited, who have applied at the Issue Price of Rs.22/- per Equity Share, was finalized in consultation with the NSE. The Company has received 14 valid applications for 10,57,500 Equity Shares in this category resulting in 1.06 times subscription. The number of shares allotted to all Employees is 10,00,000 on proportional basis.

The Board of Directors of the Company at it's meeting held at Kolkata on July 29, 2005 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

The Refund Orders have been 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 have been printed with the Bank Mandate details as registred, if any with the depositories. The shares allocated to the successful applicants have been credited to their beneficiary accounts subject to verification of the beneficiary details with the depositories concerned.

The company is taking steps to get the equity shares admitted for trading on The National Stock Exchange of India Limited and the Stock Exchange, Mumbai 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 Registrars to the Issue, Intime Spectrum Registry Ltd. at www.intimespectrum.com

All future correspondence in this regard may kindly be addressed to the Registrars to the Issue quoting full name of the Firs/Sole applicants, serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Bank Branch where the application had been lodged and payment details at the address of the Registrars given below:

INTIME SPECTRUM REGISTRY LTD
C-13, Pannalal Silk Mills Compound, L B S Marg, Bhandup (West), Mumbai - 400 078.
Tel: +91-22-5555 5491-94; Fax: +91-22-5555 5499;
E-Mail: sramrupai@intimespectrum.com, Website: www.intimespectrum.com