Reliance Petroleum Limited

(Incorporated under the companies Act, 1956 on October 24, 2005)
Registered Ofice:Motikhavdi, P.O. Digvijaygram, Dist. Jamnagar 361 140, Gujarat, India.
Tel:+91 288 3001 805; Fax: +91 288 3011  850
Corporate Office: 3rd Floor, Maker Chambers IV,222 Nariman Point, Mumbai 400 021, India.
Tel.: +91 2 2278 5214; Fax: +91 22 2278 5111.
Email: rpl.ipo@ril.com, Website: www.reliancepetroleum.com

BASIS OF ALLOCATION

ISSUE OF 1,350,000,000 EQUITY SHARES OF RS: 10 EACH FOR CASH AT A PRICE OF RS. 60 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs 50 PER EQUITY SHARE) AGGREGATING TO RS 81,000 MILLION INCLUDING PROMOTER CONTRIBUTION OF 900,000,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 60 PER SHARE("PROMOTER CONTRIBUTION") AND THE NET ISSUE TO PUBLIC OF 450,000,000 EQUITY SHARES OF RS. 10 EACH ("NET ISSUE"). THE NET ISSUE WILL CONSTITUTE 10% OF THE FULLY DILUTED POST ISSUE PAID UP CAPITAL OF RELIANCE PETROLEUM LIMITED ("COMPANY" OR "ISSUER").
THE FACE VALUE PER EQUITY SHARE IS RS. 10. THE ISSUE PRICE PER EQUITY SHARE IS RS. 60 AND IT IS 6 TIMES OF THE FACE VALUE.

The Issue was made through the 100% Book Building Process where at least 60% of the Net Issue was to be allocated on proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was to specifically be allotted to mutual funds on proportionate basis). Further, not less than 10% of the Net Issue was available for allocation on proportionate basis to Non-Institutional Bidders and not less than 30% of the Net Issue was available for allocation on proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 2,108,279 applications for 23,049,733,824 Equity Shares resulting in 51.22 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
The final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with Bombay Stock Exchange Limited on May 3, 2006.

A. Allocation to Retail Investors
The category was subscribed 13.80 times. The total number of shares allotted in this category is 135,000,000 Equity Shares and the number of allottees is 1247592. The category-wise details of the Basis of Allocation are as under:

B. Allocation to Non Institutional Investors
The category was subscribed 57.59 times. The total number of shares allotted in this category is 45,000,000 Equity Shares and the number of allottees is 7328. The category-wise details of the Basis of Allocation (Sample) are as under:

C. Allocation to QIBs
The category was subscribed 68.20 times. Allocation to QIBs have been done on a proportionate basis. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (13,500,000) on proportionate basis and Other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (256,500,000) 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 11.51% for QIB segment and other QIB applicants were allotted 88.49% of the shares for QIB segment. The total number of allottees is 411.

The Committee of Directors of the Company at its Meeting held at Hyderabad on May 3, 2006 has approved the Basis of Allocation of shares of the Issue and has allotted the shares to the successful applicants.

The CAN, Refund Orders / Advice and Notice for Balance Amount Payable have been despatched to the address of the investors as registered with the depositories; despatch completed on May 5, 2006. 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 have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed listing applications with Bombay Stock Exchange Limited and National Stock Exchange of India Limited on May 5, 2006 to enable them to grant permission for listing of the shares

The details of the allocation made is hosted on the website of the 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: RPL, Karvy House, 46, Avenue 4, Street No.l, Banjara Hills, Hyderabad - 500034, Fax: 040-23420814 Email: rpl.ipo@karvy. com or mailmanager@karvy.com

TOLL FREE^, HELPLINE NUMBER 1-800-3454001

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 RELIANCE PETROLEUM LIMITED.