| 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. |