KEWAL KIRAN CLOTHING LIMITED

(Incorporated as Kewal Kiran Apparls Private Limned on 30th January 1992 under the Companies Act, 1 956 with Registration No. 11-65136 With effect from 1st December 2002, a group company callled Kewel Kiren Clothing Private Limited was merged With Kewal Kiran Apparels Private Limited with affect from 17th October 2003, Kewal Kiren Apparels Private Limited Changed its name to kewal Kiren Clothing Private Limited. with effect from 2nd November 2005, Kewal Kiren clothing private Limited Became a public company under the name of Kewal Kiren Clothing Limited).

Registered Office: 8-101 to 107, Syntholine Estate Behind Virwani  industrial Estate, Goregaon (East), Mumbai 400 063 Tel: +91-22-2874-4433; Fax: +91-22-2874-8998;
Corporate Office: Kewal Kiren Estate, Behind Tirupati Udyog 460/7 I B Patel Road, Near W1, Highway, Goregaon (East) Tel: +91-22-2681-4400; Fax: +91-22-2681-4444 Website: www. Kewalkiren .com; Email: ipo @kewalkiran .com Contact Person/compliance Officer: Mr. Abhijit B. Warange

BASIS OF ALLOCATION

PUBLIC ISSUE OF 3,100,000 EQUITY SHARES OF RS. 10 EACH AT A PRICE OF RS. 260 FOR CASH AGGREGATING RS. 806 MILLION (REFERRED TO AS THE "ISSUE"), BY KEWAL KIRAN CLOTHING LIMITED ("THE COMPANY" OR "ISSUER"). THE ISSUE WOULD CONSTITUTE 25.15% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY

ISSUE PRICE IS RS. 260 PER EQUITY SHARE AND IS 26 TIMES OF THE FACE VALUE.

The Issue made through the 100% Book Building Process where up to 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 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 59331 applications for 38494000 equity shares resulting in 12.4174 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional and Retail Individual Investors categories are as under (Before technical rejections):

Final Demand
Thefinal demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited ("NSE") on 4th April, 2006.

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.260/- per Equity Share, was finalized in consultation with NSE. The category was oversubscribed 8.7136 times. The total number of shares allotted in this category is 1085014 Equity Shares. The category-wise details of the Basis of Allocation are as under:

B. Allocation to Non Institutional Investors

The Basis of Allocation to the Non institutional, who have bid at and above the Issue Price of Rs.260/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 11.9001 times, The total number of shares allotted in this category is 465023 Equity Shares. The category-wise details of the Basis of Allocation (Sample) areas under:

C. 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 (77500) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (1472500) on proportionate basis. The sectoral cap and other limits applicable to the holding of shares in company have been taken into account while allotting shares. Mutual Funds were allotted 27.34% for QIB segment and other QIB applicants were allotted 72.66% of the shares for QIB segment.

The IPO Committee of Directors of the company at its Meeting held at Mumbai on 5th April, 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, Intlme Spectrum Registry Limited at www.lntlmospoctrum.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-applloatlon 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:

Intlme Spectrum Registry Limited Unit: KEWAL KIRAN CLOTHING LTD.
C-13 Pannalal Silk Mills Compound, LBS Marg, Bhandup West, Mumbal 400078 Tel: +9122 25980320-28.
Fax: +9122 25960329 Email: kewalkiran@indiatimespectrum.com Webalte: www.Intimespectrum.com

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 KEWAL KIRAN CLOTHING LIMITED.