AIR DECCAN

Deccan Aviation Limited

(Incorporated on June 15, 1995 under the Companies Act, 1956 )

Registered Office: 35/2, Cunningham Road, Bangalore 560 052, Kamataka, India
Tel:+91-80-4114 8190, Fax:+91-80-4114 8849. Website: www.airdeccan.net

BASIS OF ALLOCATION

PUBLIC ISSUE OF 24,546,000 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF RS. 148/-PER EQUITY SHARE AGGREGATING TO RS.363.28 CRORES (REFERRED TO AS "THE ISSUE"). THE ISSUE WOULD CONSTITUTE 25% OFTHE 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. 148/- EACH AND THE ISSUE PRICE IS 14.8 TIMES OF THE FACE VALUE.

The Issue made through the 100% Book Building Process where at least 50% ofthe 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 62778 applications for 27760638 equity shares resulting in 1.13 times subscription. The details of the applications received in the laws from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors and Employee categories are as under (Before technical rejections):

Fined Demand
The final demand at different bid prices Is as under:

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited (`BSE') on 2nd June, 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 Re. 148/per Equity Share, was finalized in consultation with BSE. The category was over subscribed 1.27 times. The total number of shares allotted in this category is 8883110 Equity Shares. The category-Was details of the Bob of Allocation areas under.

B. Allocation to Non institutional investors
The Basis of Allocation to the Non-institutional Investors category, who have bid at cut-off or at and above the issue Price of Rs.148/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 0.92 times. Hence full and firm allotments have been made against all valid applications. The total number of shares allotted in this category is 3389890 Equity Shares. The unsubecribed portion of 292010 equity shares has been added to Retail individual investors category.

C. Allocation to QIBs
Allocation to QIBs have been done on a proportionate basis in consultation with the Bombay Stock Exchange Limited. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (613650) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (11659350) on proportionate basis. The sectoral cap and other limits applicable to the holding of shares to company have been taken into account while allotting shares. Mutual Funds were allotted 13.82% for QIB segment and other QIB applicants were allotted 86.18% of the shares for QIB segment.

The Committee of Directors of the company at it's Meeting held at Hyderabad on 3rd June, 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 altoament advice and notice has been dispatched to the address o fthe investors as registered with the depositories. In case the same is not received within ten days, investors may contact at the address givers 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 totheir beneficiary accounts subject to validation of the account details with the depositories ooncemed. The company istaking 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
This details of the allocation made would be hosted on the website of Registrarstothe Karvy Computer share Private Limited at www.karvy.com or http://kcpl.kawy.oom

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 Placewhere the bid was submitted and payment details at the address given below:

Karvy Computer share Prlvata Limited
Unit: Air Deccan, Karvy House, 46, Avenue 4,
Street No.1, Banjara Hills, Hyderabad-500034
Fax: 040-23420814.
Emall: deccan.ipo@karvy.com or mailmanager@karvy.com

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