Basis of Allotment

VISA STEE LIMITED

VISA STEE LIMITED

(Incorporated as Visa Industries Limited on September 10, 1996 under the Companies Act, 1956 and the name was changed to Visa Steel Limited on 4"' May, 2005)
Registered Office: 11, Ekamra Kanan, Nayapalli, Bhubaneswar 751015. Tel:+91-674-2552479, Fax:+91-674-2554662. Website: investors@visasteel.com or www.visasteel.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 35,000,000 EQUITY SHARES OF RS.10/- EACH FOR CASH ATA PRICE OF RS. 57/- PER EQUITY SHARE AGGREGATING TO RS. 199.50 CRORES (REFERRED TO AS "THE ISSUE"). THE ISSUE COMPRISED OF PROMOTERS CONTRIBUTION OF 5,000,000 EQUITY SHARES OF RS.10 EACH. THE ISSUE WOULD CONSTITUTE 27.27% 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.57/- EACH AND THE ISSUE PRICE IS 5.7 TIMES OF THE FACE VALUE.

The Issue made through the 100% Book Building Process wherein not more than 50% of the net issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was to specifically be allotted to mutual funds). Further, not less than 15% of the issue to the public was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the issue to the public was 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 34382 applications for 193090975 equity shares resulting in 6.43 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Bidders categories are as under (Before technical rejections):

Category No. of
Applications
No. of Shares Subscription
(No of times)
Retail Bidders 34263 17322875 1.64
Non Institutional Bidders 94 3168500 0.70
Qualified Institutional Bidders 25 172599600 11.50

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

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to total
52 119400 0.06 198099200 100.00
53 40500 0.02 197979800 99.94
54 5800 0.00 197939300 99.92
55 778600 0.39 197933500 99.92
56 700 0.00 197154900 99.52
57 & Cut Off 197154200 99.52 197154200 99:52
198099200 100.00

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ("BSE") on 10'" March, 2006. The Committee of Directors of the company at its Meeting held at Hyderabad on 11"' March, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

A. 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.57/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 1.42 times (After Technical Rejections). The total number of shares allotted in this category is 11879500 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
100 7477 22.43 747700 4.42 100 7:10 523200
200 5705 17.11 1141000 6.75 141 1 804405
300 3129 9.39 938700 5.55 211 1 660219
400 2196 6.59 878400 5.20 281 1 617076
500 2933 8.80 1466500 8.67 351 1 1029483
600 953 2.86 571800 3.38 422 1 402166
700 806 2.42 564200 3.34 492 1 396552
800 6730 20.19 5384000 31.85 562 1 3782260
900 184 0.55 165600 0.98 632 1 116288
Additional 1 1:20 9
1000 438 1.31 438000 2.59 703 1 307914
1100 84 0.25 92400 0.55 773 1 64932
1200 47 0.14 56400 0.33 843 1 39621
1300 35 0.10 45500 0.27 914 1 31990
1400 25 0.07 35000 0.21 984 1 24600
1500 101 0.30 151500 0.90 1054 1 106454
1600 79 0.24 126400 0.75 1124 1 88796
1700 2413 7.24 4102100 24.27 1195 1 2883535

B. Allocation to Non Institutional Investors
The Basis of Allocation to the Non Institutional Investors, who have bid at and above the Issue Price of Rs.57/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 0.69 times (After Technical Rejections). Hence full and firm allotments have been made against all valid applications. The total number of shares allotted in this category is 3120500 Equity Shares. The unsubscribed portion of 1379500 equity shares has been added to Retail Individual Investors category.

C. Allocation to OlBs
As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (750000) and other 0IBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (14250000) on proportionate basis. Mutual Funds were allotted 12.93% for QIB segment and other QIB applicants were allotted 87.07% of the shares for QIB segment.

Category Fls/Banks MFs Flls Total
No. of Shares 829 1939921 13059250 15000000

The Refund Orders and allotment advice 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 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.

INVESTORS PLEASE NOTE
These 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 Registrars 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: Visa Steel, Karvy House, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500034, Fax: 040-23420814;
Email: mailmanager@karvy.com

TOLL FREE - HELPLINE NUMBER
1-600-3454001

 

Place: Bhubaneshwar
Date : 14th March, 2006

For Visa Steel Limited
Sd/
Vishal Agerwal
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 VISA STEEL LIMITED.

Close