Basis of Allotment

GVK POWER Fs INFRASTRUCTURE LIMITED

GVK POWER & INFRASTRUCTURE LIMITED

GVK POWER & INFRASTRUCTURE LIMITED

(The Company was incorporated as Jegurupadu Operating & Maintenance Company, a private company with unlimited liability on December 2, 1994 under the Companies Act, 1956. It was converted into a private limited company on April 20, 2005 and was consequently renamed as Jegurupadu Operating & Maintenance Company Private Limited. On May 19, 2005 it was converted into a public limited company and was consequently renamed as Jegurupadu Operating & Maintenance Company Limited. On July 13, 2005 the company was renamed to GVK Power & Infrastructure Limited. The Company is the holding company of the power businesses of GVK and also provides operations and maintenance services to its power assets.)

Registered Office: R 540, New Rajender Nagar, New Delhi, 110 060. Tel: +91 11 2874 3563; Fax: +91 11 2874 4391 Corporate Office: 'Paigah House', 156-159, Sandar Patel Road, Secunderabad 500 003. Tel: +91 40 2790 2663; Fax: +91 40 2790 2665 Contact person: P.V. Rama Seshw Tel: +91 40 2790 2663; Web site: www.gvk.com; Email: gvkpilinvestorsogvk.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 8,275,556 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF RS. 310/- PER EQUITY SHARE AGGREGATING TO RS. 256.54 CRORES (REFERRED TO AS "THE ISSUE"), OF WHICH 413,778 EQUITY SHARES OF RS 10/- EACH ARE RESERVED FOR SUBSCRIPTION BY EXISTING RETAIL PUBLIC SHAREHOLDERS OF GVK INDUSTRIES LIMITED ("GIL').THE ISSUE WOULD CONSTITUTE 35% OF THE FULLY DILUTED POST ISSUE CAPITAL OF THE COMPANY.

THE FACE VALUE PER EQUITY SHARE IS RS.10/- EACH FOR CASH AT A PRICE OF RS. 310/- EACH AND THE ISSUE PRICE IS 31 TIMES OF THE FACE VALUE.

The Issue made through the 100% Book Building Process where at least 50% of the net issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QlBs") (including 5% of the QIB portion that was to specifically be allotted to mutual funds)., Further, up to 15% of the net issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 35% of the net issue to the public shall be 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 270602 applications for 211653641 equity shares resulting in 25.57 times subscription.The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional,Retail Individual Investors and Existing Retail Public Shareholders of GIL categories are as under (Before technical rejections):

Category

No. of Applications

No. of Shares

Subscription

Retail Bidders 266720 37570861 13.65
Non Institutional Bidders 1108 41717960 35.38
Qualified Institutional Bidders 146 132034000 33.16
Existing Retail Shareholders of GIL 2628 330820 0.75

Final Demand
The final demand at different bid prices is as under:

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to total
260 172320 0.08 213636340 100.00
261 2440 0.00 213464020 99.92
262 40 0.00 213461580 99.92
263 1200 0.00 213461540 99.92
264 20 0.00 213460340 99.92
265 600 0.00 213460320 99.92
266 40 0.00 213459720 99.92
268 500 0.00 213459680 99.92
270 4440 0.00 213459180 99.92
271 160 0.00 213454740 99.91
272 40 0.00 213454580 99.91
273 500 0.00 213454540 99.91
274 20 0.00 213454040 99.91
275 14940 0.01 213454020 99.91
276 580 0.00 213439080 99.91
277 3360 0.00 213438500 99.91
278 60 0.00 213435140 99.91
279 20 0.00 213435080 99.91
280 12900 0.01 213435060 99.91
281 40 0.00 213422160 99.90
282 40 0.00 213422120 99.90
283 40 0.00 213422080 99.90
284 80 0.00 213422040 99.90
285 11560 0.01 213421960 99.90
286 60 0.00 213410400 99.89
287 140 0.00 213410340 99.89
290 175020 0.08 213410200 99.89
291 2840 0.00 213235180 99.81
292 40 0.00 213232340 99.81
293 400 0.00 213232300 99.81
294 2200 0.00 213231900 99.81
295 1740 0.00 213229700 99.81
298 20 0.00 213227960 99.81
299 20 0.00 213227940 99.81
300 123860 0.06 213227920 99.81
301 200 0.00 213104060 99.75
303 20 0.00 213103860 99.75
304 280 0.00 213103840 99.75
305 1320 0.00 213103560 99.75
306 280 0.00 213102240 99.75
307 1320 0.00 213101960 99.75
308 20 0.00 213100640 99.75
309 300 0.00 213100620 99.75
310 & Cut Off 213100320 99.75 213100320 99.75
213636340 100.00

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited
("NSE") on 20'" February, 2006.

A. Allocation to Existing Retail Shareholders of GIL

The Basis of Allocation to the Existing Retail shareholders of GIL category, who have bid at cut-off or atand above the Issue Price of Rs.310/- per Equity Share, was finalized in consultation with NSE. Thecategory was subscribed to the extent of 0.75 times. Hence full and firm allotments have been madeagainst all valid applications. The total number of shares allotted in this category is 311800 Equity Shares.The unsubscribed portion of 101978 equity shares has been added to Qualified Institutional Buyers,Retail Individual Investors and Non-Institutional categories in the ration of 50:15:35.

B. 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. 310/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 13.00 times. The total number of shares allotted in this category is 2787314 Equity Shares.
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-

Ratio

Total No. of
Shares allocated

20 28056 10.87 561120 1.55 20 1:13 43160
40 25604 9.92 1024160 2.82 20 2:13 78780
60 18903 7.32 1134180 3.13 20 3:13 87240
80 12202 4.73 976160 2.69 20 4:13 75080
100 26939 10.44 2693900 7.43 20 11:29 204360
120 8245 3.19 989400 2.73 20 6:13 76100
140 11150 4.32 1561000 4.31 20 7:13 120080
160 77516 30.03 12402560 34.21 20 17:28 941260
180 1654 0.64 297720 0.82 20 9:13 22900
200 3507 1.36 701400 1.93 20 13:17 53640
220 671 0.26 147620 0.41 20 5:6 11180
240 865 0.34 207600 0.57 20 12:13 15960
260 532 0.21 138320 0.38 20

FIRM

10640

ADDITIONAL

1

10:41

130
280 524 0.20 146720 0.40 22 FIRM 11528
300 3962 1.54 1188600 3.28 23 FIRM 91126
320 37766 14.63 12085120 33.33 25 FIRM 944150

C. Allocation to Non Institutional Investors

The Basis of Allocation to the Non institutional, who have bid at and above the Issue Price of Rs.310/ perEquityShare, was finalized in consultation with NSE. The category was subscribed 34.79 times. The total number of shares allotted in this category is 1194564 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under:

Category No. of
A pins.
% to
total
Total No. of
Shares applied
% to
total
No. of Shares
allocated
Ratio Total No. of
Shares allocated
340 101 10.01 34340 0.08 20 1:2 1020
1000 59 5.85 59000 0.14 29 FIRM 1711
10000 17 1.68 170000 0.41 287 FIRM 4879
50000 9 0.89 450000 1.08 1437 FIRM 12933
100000 7 0.69 700000 1.68 2874 FIRM 20118 .
350000 1 0.10 350000 0.84 10060 FIRM 10060
850000 1 0.10 850000 2.05 24431 FIRM 24431
1612900 1 0.10 1612900 3.88 46359 FIRM 46359
1700000 1 0.10 1700000 4.09 48862 FIRM 48862
2000000 1 0.10 2000000 4.81 57485 FIRM 57485
4839000 1 0.10 4839000 11.64 139078 FIRM 139078
7860000 1 0.10 7860000 18.91 225905 FIRM 225905

D. Allocation to QIBs

Allocation to QIBs have been done on a proportionate basis in consultation with the National Stock Exchange of India Limited. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (199094) and otherQIBs and unsatisfied demands of MutualFunds were allotted the remaining available shares (3782784) on proportionate basis.The sectoralcap and other limits applicable to the holding of shares in company have been taken Into accountwhile allotting shares. Mutual Funds were allotted 19.39% for QIB segment and other QIB applicantswere allotted 80.61 % of the shares for QIB segment.

Category Fls/Banks MFs Flls Insurance Companies VCs Total
No.ofShares 795049 772222 2140394 273750 463 3981878

The Committee of Directors of the company at it's Meeting held at Hyderabad on 21' February, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

The Refund Orders and allotment advice and notice has 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 over-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 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

This details of the allocation made would be hosted on the website of Registrars to the Issue, Karvy Computershare Private Limited at www.karvy.com or http://karisma.karvy.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 number of the bid-cum-application form, number of sharesbid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
Unit: GVK, Karvy House, 46, Avenue 4, Street No.t, Banjara Hills, Hyderabad - 500034, Fax: 040-23311968. Email: gvkipogkarvy.com or mailmanagerokarvy.com

TOLL FREE - HELPLINE NUMBER
1-600-3454001

 

Place : Hyderabad
Date : 23 February, 2006

For GVK Power & Infrastructure Limited
Sd/
P V Rama Seshu
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 GVK POWER & INFRASTRUCTURE LIMITED.

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