Basis of Allotment

GODAWARI POWER AND ISPAT LTD

GODAWARI POWER AND ISPAT LTD.

(Incorporated on September 21, 1999 under the Companies Act, 1956 and was issued a Certificate of Commencement of Business on November 15, 1999. The Company changed its name from "Ispat Godawari Limited" to "Godawari Power and Ispat Limited" on June 20, 2005.)

Registered Office: Plot No. 428/2, Phase 1, Industrial Area, Siltara-493 111, Dist. Raipur, Chhattisgarh, India.
Tel.: +91-7721- 264342/406130, Fax: + 91-7721-264341/403701.

Corporate Office: First Floor, Hira Arcade, Near New Bus Stand, Pandri, Raipur - 492 001, Chhattisgarh, India.
Tel.: +91-771- 405 7600. Fax: +91-771- 405 7601. Contact Person: Mr. Y. C. Rao, Email: ycrao@gpilindia.com,
Tel.: +91- 771- 4054279. Website: www.gpilindia.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 8,695,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH AT A PRICE OF RS. 81 PER EQUITY SHARE FOR CASH AT A PREMIUM AGGREGATING TO RS. 704.30 MILLION (HERE IN AFTER REFERRED TO AS THE "ISSUE") COMPRISING OF 400,000 EQUITY SHARES OF RS. 10/- EACH RESERVED FOR THE EMPLOYEES OF THE COMPANY AND A NET ISSUE TO THE PUBLIC OF 8,295,000 EQUITY SHARES OF 10/-. THE ISSUE WOULD CONSTITUTE 35% OF THE POST ISSUE PAID-UP CAPITAL OF GODAWARI POWER AND ISPAT LIMITED

ISSUE PRICE: RS. 81 PER EQUITY SHARE OF FACE VALUE RS. 10. THE ISSUE PRICE IS 8.1 TIMES THE FACE VALUE.

The Issue was made through the 100% Book Building Process wherein up to 50% of the Net Issue to the public shall be allocated on a proportionate basis to Qualified Institutional Buyers, out of which 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all Qualified Institutional Buyers, including Mutual Funds, subject to valid Bids being received at or above Issue Price. Further, at least 15% of the Net Issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and at least 35% of the Net Issue to the public shall be 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 32586 applications for 17626480 equity shares resulting in 2.03 times subscription. The details of the application received in the Issue from Retail Individual Bidders, Non Institutional Investors, Qualified Institutional Buyers and Employees categories is as under:

Category No. of-Applications No of Shares Bid* No. of times Subscribed #
Retail Individual Bidders 32478 12425600 4.28
Non Institutional Bidders 79 1729840 1.39
Qualified Institutional Buyers 11 3064400 0.74
Employees 18 406640 1.02
Total 32586 17626480 2.03

* Including bids received at cut off price # After eliminating cheque returns.

Final Demand
A sample of the final demand at different bid prices is as under:

Bid Price No. of Equity shares % of Total Cumulative Total Cumulative %
70 36960 0.1962 18839520 100.0000
71 4480 0.0238 18802560 99.8038
72 22880 0.1214 18798080 99.7800
73 960 0.0051 18775200 99.6586
74 800 0.0042 18774240 99.6535
75 31040 0.1648 18773440 99.6492
76 25360 0.1346 18742400 99.4845
77 1520 0.0081 18717040 99.3499
78 1760 0.0093 18715520 99.3418
79 1200 0.0064 18713760 99.3325
80 14000 0.0743 18712560 99.3261
81 6636640 35.2272 18698560 99.2518
9999 12061920 64.0246 12061920 64.0246

The Basis of Allotment was finalised in consultation with National Stock Exchange of India Limited ("NSE") on April 19, 2006.

A) Allocation to Retail Individual Bidders

The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs. 81 per Equity Share, was finalized in consultation with NSE. The category was subscribed 3.31976 times. The total number of shares allotted in this category is 3670052 Equity Shares. The sample of the 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
80 6852 21.53 548160 4.5 80 3:10 164400
160 5427 17.05 868320 7.13 80 17:28 263600
240 3195 10.04 766800 6.29 80 9:10 230080
320 2389 7.51 764480 6.27 96 FIRM 229344
400 2136 6.71 854400 7.01 120 FIRM 256320
480 943 2.96 452640 3.72 145 FIRM 136735
560 7397 23.24 4142320 34 169 FIRM 1250093
640 387 1.22 247680 2.03 193 FIRM 74691
720 102 0.32 73440 0.6 217 FIRM 22134
800 220 0.69 176000 1.44 241 FIRM 53020
880 26 0.08 22880 0.19 266 FIRM 6916
960 82 0.26 78720 0.65 289 FIRM 23698
1040 66 0.21 68640 0.56 313 FIRM 20658
1120 55 0.17 61600 0.51 337 FIRM 18535
1200 2548 8.01 3057600 25.1 361 FIRM 919828

B) Allocation to Non Institutional Bidders

The Basis of Allocation to the Non Institutional Investors, who have bid for at the Issue Price of Rs. 81 per Equity Share, was finalized in consultation with NSE. The category was subscribed 1.08860 times. The total number of shares allotted in this category is 1572868 Equity shares. 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 in
the category
Ratio Total No. of Shares
allocated
6160 6 8.7 36960 2.16 5659 FIRM 33954
12000 5 7.25 60000 3.5 11023 FIRM 55115
40000 1 1.45 40000 2.34 36744 FIRM 36744
44400 1 1.45 44400 2.59 40786 FIRM 40786
49360 2 2.9 98720 5.77 45343 FIRM 90686
61680 2 2.9 123360 7.2 56660 FIRM 113320
62000 2 2.9 124000 7.24 56954 FIRM 113908
74000 1 1.45 74000 4.32 67977 FIRM 67977
75040 1 1.45 75040 4.38 68932 FIRM 68932
100000 2 2.9 200000 11.68 91861 FIRM 183722
150000 1 1.45 150000 8.76 137791 FIRM 137791
154000 1 1.45 154000 8.99 141466 FIRM 141466

C) Allocation to Qualified Institutional Bidders:

Allocation to QIBs has been made in consultation with NSE. The category was subscribed to the extend of 0.73588 times. Hence, FULL and FIRM Allotment have been made against valid application. The unsubscribed portion of 1095420 equity shares was added to the Retail & Non-institutional Categories.

Category FIs/Banks MFs Flls Insurance Companies VCs Total
No. of Shares 867280 884000 1177440 - 123360 3052080

D) Allocation to Employees:

The Basis of Allocation to the Employees category, who have bid at cut-off or at the Issue Price of Rs. 81 per Equity Share, was finalized in consultation with NSE. The category was subscribed to the extent of 1.01660 times. The total number of Equity Shares allotted in this category is 400000 Equity Shares.

The Board of Directors of Godawari Power and Ispat Limited at its Meeting held at Raipur on April 20, 2006 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

The despatch of Refund Orders/ Advice has been completed by April 21, 2006 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 registered, if any, with the depositories. The shares allocated 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 April 21, 2006. The Company is taking steps to get the Equity shares admitted for trading on National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

The details of the allocation made has been hosted 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 Registrars to the issue quoting full name of the First/ Sole applicant, Serial No. of the Application form, number of shares applied for and the name of the Bank branch where the application was lodged at the following address given below:

Intime Spectrum Registry Limited
C-13, Pannalal Silk Mills Compound,
LBS Marg, Bhandup - (W), Mumbai - 400 078.
Tel.: +91 22 2596 0320-28, Fax: +91 22 2596 0329,
Website: www.intimespectrum.com
E-mail: godawaripower@intimespectrum.com

Place : Mumbai
Date  :
April 21,2006

For Godawari Power and Ispat Limited
Sd/-
Managing Director

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 GODAWARI POWER AND ISPAT LIMITED.
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