MALU PAPER MILLS LTD

Incorporated in India on January 11,1994 as Malu Solvex Limited under the Companies Act, 1956 with Registration No. 11-76009 with Registrar of Companies, Maharashtra. The name of the Company was changed to Malu Paper Mills Limited on April 24, 1998)

Registered Office: " Heera Plaza"' 4th Floor, Near Telephone Exchange, Central Avenue, Nagpur-440 008. (Maharashtra) Tel.: +91 712 2760308, 2778506, 2733100, Fax: +91 712 2760310
E-mail: ipo@malupaper.com; Website: www.malupaper.com
Contact Person: Mr.Girish Malpani, CFO & Compliance Officer

PUBLIC ISSUE OF 66,67,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PREMIUM OF RS. 20/-  PER SHARE AGGREGATING RS. 2000.10 LACS OUT OF WHICH NET OFFER TO THE PUBLIC IS OF 56,67,000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PREMIUM OF RS. 20/- PER SHARE AGGREGATING RS. 1700.10 LACS.

THE ISSUE PRICE OF RS. 30/- PER SHARE IS 3 TIMES THE FACE VALUE.

BASIS OF ALLOTMENT

The Issue was made through the fixed price route where a minimum of 50% of the Net Offer to Public shall initially be made available for allotment to retail individual investors and the balance net offer of Equity Shares to the public shall be made available for allotment to Individual applicants other than retail individual investors and other investors including corporate bodies/ institutions irrespective of the number of shares applied for.

The Board of Directors of Malu Paper Mills Limited ("the Company") thanks all the investors and the intermediaries for the success of the Public Issue.

The issue received 9269 applications for 10246400 Equity Shares resulting in 1.54 times subscription (before technical rejections).

The details of subscription received from the retail, non-retail and the reserved categories are as under (After technical rejections):

A total of 75 applications for 87200 Equity Shares have been rejected on technical and multiplicity grounds.

The Basis of Allotment was finalized in consultation with the Bombay Stock Exchange Limited (BSE) on 28th March 2006.

The details of category wise allotment are as under:

A) Applications under Reserved Category

The Basis of Allotment for the investors under the reserved category who have applied at the issue price of Rs. 30/- per Equity Share was finalized in consultation with BSE.

India Mutual Funds / Indian & Multilateral Development Financial Institutions / Scheduled Banks

A total of 3 valid applications were received from this category for 4,99,800 Equity Shares resulting in 0.99 times subscription in this category. Firm allotments have been made against all applications. The total number of shares allotted in this category was 4,99,800. The shares remaining unsubscribed were added to the NRI/FII category.

NRI/Flls applying on repatriation basis

A total of 150 valid applications were received from this category for 10,20,000 Equity Shares resulting in 2.04 times subscription in this category. Firm allotments have been made against all applications. The total number of shares allotted in this category was 5,00,200.

B) Applications under Retail Category

The Basis of Allotment for the Retail Investors who have applied at the issue price of Rs. 30/- per Equity Share was finalized in consultation with BSE. A total of 8929 valid applications were received from this category for 73,78,800 Equity Shares resulting in 1.52 times subscription in this category. The total number of shares allotted in this category was 48,39,600. The category-wise details of the Basis of Allotment are as under:

C) Applications under Non-Retail Category

The Basis of Allotment for the Non-Retail Investors who have applied at the issue price of Rs. 30/- per Equity Share was finalized in consultation with BSE. Based on the ratio of the applications received under each category (Retail and Non-Retail) to the total number of applications received under the Net Offer to Public, 85.40% (48, 39,600) shares were allotted to Retail Investors while the balance of 14.60% (8,27,400) shares were allotted to the NonRetail Investors. A total of 112 valid applications were received from this category for 12,60,600 Equity Shares resulting in 1.52 times subscription in this category. Firm allotments have been made against all applications. The total number of shares allotted in this category was 8,27,400.

The Board of Directors of the Company at its meeting held at Nagpur on 29th March 2006 has approved the basis of allotment and has allotted the shares to the successful applicants.

The refund orders and allotment advice and the notice 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 overprinted with the Bank Mandate details as registered, if any, with the depositories. The shares allotted to successful applicants have been credited to their beneficiary accounts. The Company is taking steps to get the Equity Shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of the approval of the basis of allottment.

INVESTORS PLEASE NOTE

The details of the allotment have been hosted on the website of the Registrar to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting Full Name of the first applicant, Serial No. of the Application Form, No. of Shares applied for and the Name of the Bank Branch where the application has been lodged and payment details at the following address:

INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalal Silk Mills Compound, L B S Marg, Bhandup (West) Mumbai-400078
Tel: 91-22 -2596 0320, Fax: 91-22-2596 0329, Email: malupaper@intimespectrum.com

For Malu Paper Mills Limited
Sd/-
Banwarilal Malu
Jt.Managing Director