Basis of Allotment

SOBHA DEVELOPERS LIMITED

SOBHA DEVELOPERS LIMITED

(The Company was incorporated as Sobha Developers Private Limited on August 7,1995. The Status of the Company was subsequently changed to a public limited company by a special resolution of the members passed of an extraordinary general meeting held on May 8, 2006. The fresh certificate of incorporation consequent on change of name was granted to the Company on June 2, 2006 by the Registrar of Companies, Karnataka Registered Office: E-106, Sunrise Chambers, 22, Ulsoor Road, Bangalore - 560042, India)
(The registered office of the Company was shifted from E-106, Sunrise Chambers, 22, Ulsoor Road, Bangalore- 560042, India to 43, 2n Floor, Dickenson Road, Bangalore-560 042, India with effect from December 31, 2004 by a resolufion of the Board of Directors.)
Company Secretary and Compliance Officer: Mr. K Suresh. Tel: (91 80) 2559 7260, Fax: (91 80) 2559 4138,
Email : investors@sobha.co.in , Website: www.sobhadevelopers.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 8,893,332 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 640 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 630 PER EQUITY SHARE, AGGREGATING RS. 5,691.73 MILLION (THE "ISSUE") BY SOBHA DEVELOPERS LIMITED (THE "COMPANY"OR'THE ISSUER'). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 8,004,032 SHARES OF RS. 10 EACH (THE "NET ISSUE") AND A RESERVATION OF UP TO 889,300 SHARES OF RS. 10 EACH FOR THE PERMANENT EMPLOYEES OF THE COMPANY (THE "EMPLOYEE RESERVATION PORTION'). THE ISSUE WOULD CONSTITUTE 12.20% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY THE NET ISSUE WILL CONSTITUTE 10.98% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY

ISSUE PRICE: RS. 640/- PER EQUITY SHARE OF FACE VALUE OF RS. 10 EACH. THE ISSUE PRICE IS 64 TIMES OF THE FACE. VALUE.

In terms of Rule 19 (2)(b) of the Securities Contract Regulation Rules, 1957 this being an Issue for less than 25% of the post-Issue capital, the Issue was being made through the 100% Book. Building  Process wherein at least 60% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs"), out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid bids being  received from them at or above the Issue Price. If at least 60% of the Net Issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, up to 10% of the Net Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the Net Issue will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price. Further, up to 889,300 Equity Shares shall be available for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids being received at or above the Issue Price.

The Issue received 493238 applications for 1013204575 equity shares resulting in 113:9286 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors, Employee categories are as under (Before technical rejections):

Category No. of Applications No. of Shares Subscription
Retail Bidders 490108 49172375 20.4776
Non Institutional Bidders 2183 152533880 190.5959
Qualified Institutional Bidders 450 810616200 168.7922
Employees 497 882120 0.9919
TOTAL 493238 1013204575 113.9286

Final Demand

The final demand at different bid prices is as under:

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to Total
550 1669420 0.1631 1023315600 100.0000
551 270 0.0000 1021646180 99.8369
552 100 0.0000 1021645910 99.8368
553 20 0.0000 1021645810 99.8368
554 150 0.0000 1021645790 99.8368
555 9490 0.0009 1021645640 99.8368
556 210 0.0000 1021636150 99.8359
557 30 0.0000 1021635940 99.8359
558 10 0.0000 1021635910 99.8359
559 80 0.0000 1021635900 99.8359
560 74050 0.0072 1021635820 99.8358
562 220 0.0000 1021561770 99.8286
563 170 0.0000 1021561550 99.8286
564 21640 0.0021 1021561380 99.8286
565 9410 0.0009 1021539740 99.8265
566 40 0.0000 1021530330 99.8255
567 60 0.0000 1021590290 99.8255
568 290 0:0000 1021530230 99.8255
569 80 0.0000 1021529940 99.8255
570 2420 0.0002 1021529860 99.8255
575 23140 0.0023 1021527440 99.8253
576 100 0.0000 1021504300 99.8230
577 10 0.0000 1021504200 99.8230
580 15420 0.0015 1021504190 99.8230
581 290 0.0000 1021488770 99.8215
583 340 0.0000 1021488480 99.8215
584 170 0.0000 1021488140 99.8214
585 11520 0.0011 1021487970 99.8214
586 360 0.0000 1021476450 99.8203
587 3060 0.0003 1021476090 99.8202
588 24130 0.0024 1021473030 99.8199
589 10 0.0000 1021448900 99.8176
590 2730 0.0003 1021448890 99.8176
591 40 0.0000 1021446160 99.8173
593 20 0.0000 1021446120 99.8173
594 380 0.0000 1021446100 99.8173
595 24020 0.0023 1021445720 99.8173
596 160 0.0000 1021421700 99.8149
599 60 0.0000 1021421540 99.8149
600 3023540 0.2955 1021421480 99.8149
601 150 0.0000 1018397940 99.5194
603 10 0.0000 -1018397790 99.5194
605 280 0.0000 1018397780 99.5194
610 13400 0.0013 1018397500 99.5194
611 20 0.0000 1018384100 99.5181
612 70 0.0000 1018384080 99.5181
615 510 0.0000 1018384010 99.5181
616 10 0.0000 1018383500 99.5180
617 360 0.0000 1018383490 99.5180
618 400 0.0000 1018383130 99.5180
620 1783450 0.1743 1018382730 99.5180
621 170 0.0000 1016599280 99.3437
622 240 0.0000 1016599110 99.3437
623 80 0.0000 1016598870 99.3436
624 10400 0.0010 1016598790 99.3436
625 29070 0.0028 1016588390 99.3426
626 200 0.0000 1016559320 99.3398
627. 70 0.0000 1016559120 99.3397
628 80 0.0000 1016559050 99.3397
629 100 0.0000 1016558970 99.3397
630 351170 0.0343 1016558870 99.3397
631 270 0.0000 1016207700 99.3054
633 30 0.0000 1016207430 99.3054
635 26600 0.0026 1016207400 99.3054
637 260 0.0000 1016180800 99.3028
638 510 0.0000 1016180540 99.3028
639 1730 0.0002 1016180030 99.3027
640 967171800 94.5135 1016178300 99.3025
Cut-Off 49006500 4.7890 49006500 4.7890
Total 1023315600

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited("NSE") on December 11, 2006.

A.Allocation to Employees
The Basis of Allocation to the Employees category, who have bid at cut-off or at Issue Price of Rs.640/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 0.99165 times. The total number of shares allotted in this category is 881870 Equity Shares. The unsubscribed portion of 7430 Shares have been added to the Retail Category and Non Institutional Investors in the ratio of 1:1 i,e 3715 Shares each. The category wise details of the Basis of Allocation (sample) are as under.

Category No. of
Applns.
% to
Total
Total No.
of Shares
applied
% to
Total
No of
Shares
allocated
Ratio Total No.
of Shares
allocated
10 8 1.62 80 0.01 10 FIRM 80
100 32. 6.46 3200 0.36 100 FIRM 3200
500 41 8.28 20500 2.32 500 FIRM 20500
1000 15 3.03 15000 1.7 1000 FIRM 15000
5000 8 1.62 40000 4.54 5000 FIRM 40000
10000 2. 0.4 20000 2.27 10000 FIRM 20000
12500 1 0.2 12500 1.42 12500 FIRM 12500
15000 3 0.61 45000 5.1 15000 FIRM 45000
16000 1 0.2 16000 1.81 16000 FIRM 16000
20620 1 0.2 20620 2.34 20620 FIRM 20620
25000 1 0.2 25000 2.83 25000 FIRM 25000
31250 1 0.2 31250 3.54 31250 FIRM 31250
39060 1 0.2 39060 4.43 39060 FIRM 39060
555.00 1 0.2 55500 6.29 55500 FIRM 55500
195310 1 0.2 195310 22.15 195310 FIRM 195310

B. Allocation to Retail investors

The Basis of Allocation to the Retail Investors, who have bid at cut-off or at the Issue Price of Rs.640/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 20.12689 times. The total number of shares allotted in this category is 2408490 Equity Shares (Including 3715 Shares spill over from Employee Category). The category-wise details of the Basis of Allocation are as under:

Category No. of
Applns.
% to
Total
Total No.
of Shares
applied
% to
Total
No. of
Shares
allocated
Ratio Total No.
of Shares
allocated
10 25916 5.37 259160 0.54 10 1 :21 12340
20 25873 5.36 517460 1.07 10 1:10 25870
30 18222 3.78 546660 1.13 10 3:20 27330
40 13813 2.86 552520 1.14 10 1: 5 27630
50 22756 4.72 1137800 2.35 10 25:101 56330
60 9622 2 577320 1.19 10 3:10 28870
70 108056 22.4 7.563920 15:63 10 23:65 382350
80 5571 1.15 445680 0.92 10 2:5 22280
90 2022 0.42 181980 0.38 10 9:20 9100
100 14368 2.98 1436800 2.97 10 50:101 71130
110 2280 0.47 250800 0.52 10 11 :20 12540
120 2409 0.5 289080 0.6 10 3: 5 14450
130 1888 0.39 245440 0.51 10. 13 :20 12270
140 2450 0.51 343000 0.71 10 2: 3 16330
150 227 50 47.08 34057500 70.36 10 32:43 1689670

C.Allocation to Non Institutional Investors

The Basis of Allocation to the Non institutional, who have bid at the Issue Price of Rs. 640/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 189.45564 times. The total number of shares allotted in this category, is 804015 Equity Shares (Including 3715 Shares spill over from Employee Category). The category-wise details of the Basis of Allocation (Sample) are as under:

Category No. of
Applns.
% to
Total
Total No.
of Shares
applied
% to
Total
No. of
Shares
allocated
Ratio Total No.
of Shares
allocated
160 133 7.24 21280 0.01 10 1:12 110
200 173 9.42 34600 0.02 7.0 1:10 170
250 38 2.07 9500 0.01 10 5:38 50
300 77 4.19 23100 0.02 10 12: 77 120
310 28 1.52 8680 0.01 10 5:28 50
500 62 3.38 31000 0.02 10 8:31 160
780 34 1.85 26520 0.02 10 7:17 140
1000 53 2.89 53000 0.03 10 28:53 280
1400 6 0.33 8400 0.01 10 2:3 40
1500 16 0.87 24000 0.02 10 13:16 130
1550 5 0.27 7750 0.01 10 4:5 40
1560 21 1.4 32760 0.02 10 17 :21 170
1600 8 0.44 12800 0.01 10 7: 8 70
100000 9 0.49 900000 0.59 528 FIRM 4752
1000000 1 0.05 1000000 0.66 5278 FIRM 5278
1600000 1 0.05 1600000 1.05 8445 FIRM 8445
3906250 1 0.05 3906250 2.56 20618 FIRM 20618
8004000 5 0.27 40020000 26.27 42212 FIRM 211060

D. Allocation to Qualified institutional Buyers

Allocation to QIBs have been done on a proportionate basis in consultation with the National Stock Exchange Limited. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shores available (240123) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (4562327) 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 16.6296% for QIB segment and other QIB applicants were allotted 83.3704% of the shares for QIB segment.

Category FIs/Banks MFs FIIs Insurance Companies VCs Total
No.of Shares 510571 798626 3173688 303487 16078 4802450

The Board of Directors of the company of its Meeting held at Bangalore on December 12, 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, Intime Spectrum Registry Limited at www.intimespectrum.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:

INTIME SPECTRUM REGISTRY LIMITED
Unit: Sobha Developers Limited
C-13 Pannalal Silk Mills Compound, L.B.S. Marg,
Bhandup (West), Mumboi - 400 078
Tel. No.: (91 22) 2596 0320 - 28, Fax. No.: (91 22) 2596 0329
Email : isrl@intimespectrum.com

Place : Mumbai
Date : December 13, 2006

For Sobha Developers Limited
Sd/-
Mr. K. Suresh
Company Secretary

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 SOBHA DEVELOPERS LIMITED.

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