GUJARAT INDUSTRIES POWER COMPANY LIMITED

(The Company was incorporated on June 1, 1985 under the Companies Act, 1956. The Registered Office of our Company was changed from Arti Apartment, Atma Ram Road, Karelibaug, Vadodara 390 018 to Post Office Petrofils 391 347, District Vadodara with effect from April 1, 1990 and then to the present address with effect from January 17,2004)

Regd.Office : P.O. Petrochemicals -391 346, Dist.Vadodara(Gujarat).
Telephone: +91 265 2232768, 2230159; Fax: +91 265 2231207, 2230473; Website: www.gipcl.com

BASIS OF ALLOCATION

Public Issue of 40,441,176 Equity Shares of Rs.10/- each for cash at a price of Rs.68 per Equity Share aggregating to Rs.2750 million(the 'Issue'), by Gujarat Industries Power Company Limited(the "Company" or "Issuer"). The Issue comprises of 11,029,411 Equity Shares of Rs.10/- each reserved for participation by one of the Promoter Company viz. Gujarat Alkalies and Chemicals Limited, and one of the Promoter Group Company viz.Gujarat State Electricity Corporation Limited, in the Issue at a price of Rs.68 aggregating Rs.750 million and reservation for Employees of 400,000 Equity Shares of Rs.10/- each, at a price of Rs.68 each aggregating to Rs.27.20 million. The net Issue to the Public is of 29,011,765 Equity Shares of Rs.10/- each at a price of Rs.68 aggregating Rs.197.28 million(the 'Net Issue'). The Issue would constitute 26.74% of the fully diluted post issue paid up Equity Capital of the Company.

THE ISSUE PRICE IS RS.68 PER EQUITY SHARE OF FACE VALUE OF RS.10.
THE ISSUE PRICE IS 6.8 TIMES OF THE FACE VALUE OF EQUITY SHARE

The Issue made through the 100% Book Building process wherein 50% of the issue to the public was to be allocated on a discretionary basis to Qualified Institutional Buyers ("QIBs"), further, not less than 15% of the Net Issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 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 46047 applications for 128280201 equity shares resulting in 4.36 times subscription. The details of the application received in the Issue from Retail, Non Institutional, Employees and Qualified Institutional Investor categories (before technical rejections) are as under:

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

The Basis of Allotment was finalized in consultation with Bombay Stock Limited("BSE") on 28th October, 2005.

(A) Allocation to Employees
The Basis of Allocation to the employees of Gujarat Industries Power Company Limited, who have bid at cut-off or at the Issue Price of Rs.68/- per Equity Share, was finalized in consultation with BSE. Since this category was not fully subscribed, the spill over portion of 326020 equity shares has been added to the Retail category. The total number of shares allotted in this category is 73980 Equity Shares and all the employees have been allotted the shares on full & firm basis.

(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.68/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 1.75 times. The total number of shares allotted in this category is 10802603 Equity Shares. The unsubscribed portion of equity shares of Non-Institutional and Employee categories have been added to the Retail category. The sample of category-wise details of the Basis of Allocation are as under:

C. Allocation to Non Institutional Investors

The Basis of Allocation to the Non institutional, who have bid at the Issue Price of Rs.68/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 0.93 times. The total number of shares allotted in this category is 4029300 Equity Shares. Since this category was not fully subscribed, the spill over portion of 322465 equity shares has been added to the Retail category. The sample of category-wise details of the Basis of Allocation are as under:

(D) Allocation to QIBs

The Committee of Directors for Public Issue of the company at it's Meeting held at Vadodara, on 28th October, 2005 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 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 The 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.

Investers 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://kcpl.Karvy.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, number of shares bid 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:GIPCL, Karvy House, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500034, Fax: 040-2311968
Email: gipcl.ipo@karvy.com or mailmanager@karvy.com

Toll Free - Helpline Numbers 1-600-3454001

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 PROSPECTUS OF GUJARAT INDUSTRIES POWER COMPANY LTD.