Basis of Allotment

AIR DECCAN 4N

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):

Category No. of Applications No. of Shares Subscription
Retail Bidders 62638 11275678 1.31
Non Institutional Bidders 115 3423275 0.93
Qualified Institutional Bidders 25 13061685 1.06

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

Bid Price No. of Shares % to Total Cumulative
Total
Cumulative
% to Total
146 338975 1.12 30133040 100.00
147 1225 0.00 29794065 98.88
148 630 0.00 29792840 98.87
149 175 0.00 29792210 98.87
150 10797220 35.83 29792035 98.87
151 1680 0.01 18994815 63.04
152 1470 0,00 18883135 63.03
153 210 0.00 18891665 63.03
154 420 0.00 18991455 63.03
155 16835 0.06 18991035 63.02
156 175 0.00 18974200 62.97
157 945 0.00 11974025 62.97
158 2275 0.01 18973080 62.96
159 70 0.00 18970805 62.96
160 83790 0.28 18970735 62.96
161 210 0.00 18886945 62.68
162 945 0.00 18886735 62.68
163 175 0.00 18885790 62.67
164 2030 0.01 18885615 62.87
165 88480 0.29 18883585 62.87
166 420 0.00 18795105 62.37
167 490 0.00 18794685 62.37
168 2625 0.01 18794195 62.37
169 385 0.00 18791570 62.36
170 15540 0.05 18791185 62.36
171 630 0.00 18775645 62.31
172 175 0.00 18775015 62.31
173 175 0.00 18774840 62.31
174 385 0.00 18774665 62.31
175 & Cut-off 16774280 62.30 18774280 62.30
30133040 100.00

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.

category No. of
Applications
% to
Total
Total No.
of shares
applied
% to
Total
Proportional
Allocation
Ratio Total No.
of shares
allocatad
35 12193 20.06 426755 3.90 35 30:37 346010
70 10127 16.66 708890 6.48 57 FIRM 577239
105 8723 14.35 915915 8.37 85 FIRM 741455
Additional 1 2:31 567
140 5070 8.34 709800 6.49 114 FIRM 577980
175 2308 3.80 403900 3.69 142 FIRM 327736
210 2502 4.12 525420 4.80 170 FIRM 425340
245 1102 1.81 269990 2.47 199 FIRM 219298
280 11536 18.98 3230080 29.52 227 FIRM 2618672
315 531 0.87 167265 1.53 256 FIRM 135936
350 531 0.87 185850 1.70 284 FIRM 150804
385 I 87 0.14 33495 0.31 313 FIRM 27231
420 136 022 57120 0.52 341 FIRM 46376
455 64 0.11 29120 0.27 369 FIRM 23816
490 143 0.24 70070 0.64 398 FIRM 56914
525 229 0.38 120225 1.10 426 FIRM 97554
560 5297 8.72 2966320 27.11 455 FIRM 2410135
595 18 0.03 10710 0.10 483 FIRM 8694
630 83 0.14 52290 0.48 511 FIRM 42413
665 91 0.15 60515 0.55 540 FIRM 49140

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.

Category Fls/Banks MFs Flls IC VC Total
No.of Shares 1064446 1696722 5603244 2634793 1273795 12273000

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

TOLL FREE -HELPLINE NUMBER 1-800,9454001



Place : Bangalore
Date : 6/6/2006

For Deccan Aviation Limited
Sd/
Radhika Venkatesh
Company Secretary

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