Basis of Allotment

VOLTAMP

VOLTAMP TRANSFORMERS LIMITED

((Our Company was Incorporated on March 2,1967 as "Voltamp Transformers Private Limited" at Ahmedabad under the Companies Act, 1956, with the Registration No. 1437 of 1967. Subsequently, we became a deemed public company on July 11, 1989 as per Section 43A of the Companies Act, 1956. In 2001 we converted back to private company under section 43A(2A) of the Companies Act, 1966 as "Voltamp Transformers Private Limited" with effect from May 8, 2001. On February 6, 2006, our Company was again converted to a public limited company as "Voltamp Transformers Limited"). For further details, please see section titled "Notes to Risk Factors" on page xix of the Prospectus.)

Registered and Corporate Office: Makarpura, Vadodara -390 014, Gujarat.
Tel: + 91265 2642011, +91265 2642012 Fax: + 91265 2648454, + 91265 2646774,
E-Mall: vnm_ipo@voltamptransformers.com; Website: www.voltamptransformers.com,
Contact Person/ Compliance Officer: Mr. Vallabh Nanjibhai Madhani

BASIS OF ALLOCATION

OFFER FOR SALE OF 4,883,840 EQUITY SHARES OF RS. 10/- EACH BY THE SELLING SHARE HOLDERS AT A PRICE OF RS. 345/- PER EQUITY SHARE FOR CASH AGGREGATING RS. 1684.92 MILLION (HEREINAFTER REFERRED TO AS THE "OFFER"), INCLUDING EMPLOYEE RESERVATION OF 244,192 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH AND A NET OFFER TO THE PUBLIC OF 4,639,648 EQUITY SHARES OF RS. 10/- EACH AT A PRICE OF RS. 345. THE OFFER SHALL CONSTITUTE 48.27% OF THE FULLY DILUTED POST OFFER PAID UP-CAPITAL OF OUR COMPANY THE NET OFFER SHALL CONSTITUTE 45.86% OF THE FULLY DILUTED POST OFFER PAID-UP CAPITAL OF OUR COMPANY.

ISSUE PRICE Rs. 345/- PER EQUITY SHARE
ISSUE PRICE IS 34.5 TIMES THE FACE VALUE OF RS. 10/
-

This Offer for Sale is being made through a 100% Book Building Process wherein up to 50% of the Net Offer shall be allotted on a proportionate basis to Qualified Institutional Buyers ("OIBs"); wherein 5% of the OIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15% of the Net Offer shall. be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Offer Price. Further, 244,192 Equity Shares shall be available for allocation on a proportionate basis to eligible Employees, subject to valid Bids being received at or above the Offer Price. The Company has not opted for grading of this offer.

Final Demand

The Offer received 64921 applications for 84988600 shares resulting in over subscription of 17.4 times. The details of applications received in the Issue from Employee , Qualified Institutional Buyer, Retail Individual Investors and Non-
Institutional Investors categories (before technical rejections) are as under.

Category Number of Applications Number of Shares Subscription
Retail Individual Bidders 64487 10671960 6.5719
Non Institutional Bidders 258 15720860 22.5892
Qualified Institutional Bidders 140 58546840 252376
Employees 36 48940 0.2004

The final demand at different bid prices is as under:

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to total
295 201960 0.2095 96389960 100.0000
296         80 0.0001 96188000 99.7905
297        180 0.0002 96187920 99.7904
298        100 0.0001 96187740 99.7902
299        400 0.0004 96187640 99.7901
300 3803200 3.9456 96187240 99.7897
301   244620 0.2538 92384040 95.8440
304       6980 0.0072 92139420 95.5903
305       3160 0.0033 92132440 95.5830
306         500 0.0005 92129280 95.5797
310      24760 0.0257 92128780 95.5792
312       25240 0.0262 92104020 95.5535
313           260 0.0003 92078780 95.5274
314            20 0.0000 92078520 95.5271
315         4900 0.0051 92078500 95.5271
316          240 0.0002 92073600 95.5220
317           200 0.0002 92073360 95.5217
318           260 0.0003 92073160 95.5215
320    170880 0.1773 92072900 95.5213
321            40 0.0000 91902020 95.3440
322     205600 0.2133 91901980 95.3439
323           280 0.0003 91696380 95.1306
324             80 0.0001 91696100 95.1303
325    3937080 4.0845 91696020 95.1303
326           300 0.0003 87758940 91.0457
330        36700 0.0381 87758640 91.0454
331            520 0.0005 87721940 91.0073
332          4800 0.0050 87721420 91.0068
333       27620 0.0287 87716620 91.0018
334             20 0.0000 87689000 90.9732
335   1297860 1.3465 87668980 90.9731
340    845660 0.8773 86391120 89.6267
344          600 0.0006 85545460 88.7493
345 75344020 78.1658 85544860 88.7487
9999 10200840 10.5829 10200840 10.5829
96389960 100.0000

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange ("BSE") on September 11, 2006. The final demand at different bid prices and allocation of shares in following 4 categories is as under:

A. Allocation to Employees

The Employee category was subscribed 0.20042 times. Firm & full allotments have been made against all 36 applications. 48940 equity shares have been allotted in this category against the reservation of 244,192 equity shares. The under subscription of 195252 shares have been added to the Retail and Non Institutional category. All the valid applicants have received full allotment.

B. Allocation to QIBS

Allocation to QIBs have been done on a proportionate basis. As per SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (115,991) and the unsatisfied demand of Mutual Funds and other QIBs were allotted the balance available shares (2,203,833) on proportionate basis. Mutual Funds were allotted 28.37 % in the QIB segment and other QIB applicants were allotted 71.63 % of the shares. The break up of application received within the QIB segment is as under

Category Fls/Bank MFs Flls Insurance Companies Total
No. of shares 227339 658155 1329197 105133 2319824

C.Allocation to Retail Investors

The Retail category was category was over subscribed 6.47592 times. 63360 applications for 10516100 equity shares were received against an offer of 1,623,877 equity shares.. After adjusting the under subscription from the Employee category, a total of 1721503 equity shares were allotted in this category, due to which the over subscription ratio was reduced to 6.10867 times.. The category-wise details of the basis of allocation ( partial ) are as under:

Category No. of applications % to total Total shares applied % to total Shares allocated Ratio Total no. of shares allocated
20 5092 8.04 101840 0.97 20 31:100 31520
40 4261 6.73 170440 1.62 20 11:25 37460
60 3258 5.14 195480 1.86 20 27:50 35140
80 2024 3.19 161920 1.54 20 39:50 31580
100 3737 5.9 373700 3.55 20 87:100 65020
120 1533 2.42 183960 1.75 20 FIRM 30660
140 19130 30.19 2678200 25.47 22 FIRM 420860
160 507 0.8 81120 0.77 26 FIRM 13182
180 189 0.3 34020 0.32 29 FIRM 5481
200 594 0.94 118800 1.13 32 FIRM 19008
220 173 0.27 38060 0.36 36 FIRM 6228
240 425 0.67 102000 0.97 39 FIRM 16575
260 290 0.46 75400 0.72 42 FIRM 12180
280 22147 34.95 6201160 58.97 45 FIRM 996615

D. Allocation to Non Institutional Investors

The Non Institutional category was over subscribed 22.5761 times.239 applications for 15711800 equity shares were received against an offer of 695,947 equity shares.   Subsequent to the spill over of 97626 shares from the Employee category, a total of 793573 equity shares have been allotted, due to which the over subscription ratio was reduced to
19. 79881 times. The category-wise details of the basis of allocation (partial) are as under:

Category No. of applications % to total Total shares applied % to total Shares allocated Ratio Total no. of shares allocated
300 28 11.72 8400 0.05 20 23:28 460
1000 4 1.67 4000 0.03 50 FIRM 200
1440 4 1.67 5760 0.04 72 FIRM 288
2900 4 1.67 11600 0.07 146 FIRM 584
4920 3 1.26 14760 0.09 248 FIRM 744
5500 3 1.26 16500 0.11 277 FIRM 831
5780 8 3.35 46240 0.29 291 FIRM 2328
7240 11 4.6 79640 0.51 365 FIRM 4015
8700 3 1.26 26100 0.17 439 FIRM 1317
10000 4 1.67 40000 0.25 505 FIRM 2020
11600 3 1.26 34800 0.22 586 FIRM 1758
14480 4 1.67 57920 0.37 731 FIRM 2924
15000 4 1.67 60000 0.38 757 FIRM 3028
29000 3 1.26 87000 0.55 1464 FIRM 4392
30000 6 2.51 180000 1.15 1515 FIRM 9090
80000 3 1.26 240000 1.53 4040 FIRM 12120
144920 3 1.26 434760 2.77 7319 FIRM 21957
144940 3 1.26 434820 2.77 7320 FIRM 21960
289800 1 0.42 289800 1.84 14637 FIRM 14637
579700 2 0.84 1159400 7.38 29279 FIRM 58558
800000 1 0.42 800000 5.09 40406 FIRM 40406
2160000 1 0.42 2160000 13.75 109097 FIRM 109097
3210000 1 0.42 3210000 20.43 162129 FIRM 162129

The Board of Directors of the Company at its meeting held at Baroda on September 12, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to successful applicants.

The ECS intimation, Refund Orders and allotment advice and notice has been dispatched on September 13, 2006 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 have been credited to their beneficiary accounts September 13, 2006 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 Bombay Stock Exchange Limited and the National Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

The detail of allocation made would be hosted on the website of Registrar to the Issue, Intime Specturm Registry Limited at www.intimespectrum.com.
All future correspondence in this regard may kindly be addressed to the Registrar 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:

Intime Spectrum Registry Limited
Unit: Voltamp Transformers Limited,
C-13, Pannalal Silk Mills Compound. LBS Road,
Bhandup West, Mumbai -400 078.
INTIME SPECTRUM
Tel No.: +91-22-25960320,
Fax No.: +91-22-25960329,
Email: vishwasa@intimespectrum.com

Place : Baroda
Date : September 12. 2006

For Voltamp Transformers Limited
Sd/
Mr. VN. Madhani
(Company Secretary)

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING ORTHE BUSINESS PROSPECTS OF VOLTAMP TRANSFORMERS LIMITED.

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