Basis of Allotment

This communication is intended tor release solely in India and may not be released in the United States

This communication is intended for release solely in India and may not be released in the United States. This communication does not constitute an offer of securities for sale in any jurisdiction including the United States. Any securities described in this communication may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption from registration.

Shriram epc
Engineering the future
Shriram EPC Limited

(The Company was incorporated as Shriram EPC Limited on June 12, 2000. A certificate of commencement of business was granted on June 30, 2000 by the Registrar of Companies, Tamil Nadu. Shriram Engineering Construction Company Limited was merged with the Company by an order of the Court dated July 22, 2005 with effect from April 1, 2004} Registered Office: No.5, TV. Street, Chetput, Chennai - 600 031, Tamil Nadu, Tel : +91 44 2836 1817, Fax : +91 44 2836 3518, Email:investors@shriramepc.com, Website : www.shriramepc.com
Company Secretary and Compliance Officer: Mr.K.Suresh

BASIS OF ALLOCATION

PUBLIC ISSUE OF 5,000,000 EQUITY SHARES OF Rs. 10/- EACH AT A PRICE OF RS. 300/- PER EQUITY SHARE FOR CASH AT A PREMIUM OF RS.290/-PER EQUITY SHARE AGGREGATING RS. 1500 MILLION (THE ISSUE). THE ISSUE SHALL CONSTITUTE 11.66% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.
ISSUE PRICE: RS. 300/- PER EQUITY SHARE OF FACE VALUE OF RS. 10 EACH. THE ISSUE PRICE IS 30 TIMES OF THE FACE VALUE. THE EQUITY SHARES OF THE COMPANY ARE PROPOSED TO BE LISTED ON THE NATIONAL STOCK EXCHANGE OF INDIA (NSE) AND BOMBAY STOCK EXCHANGE LIMITED (BSE)
In terms of rule 19(2)(b) of the SCRR, as being an Issue for less than 25% of Post-Issue equity share capital, the Issue was being made through the 100% Book Building Process wherein atleast 60% of the issue was to be allocated on proportionate basis to Qualified Institutional Buyers ("QIBs"), out of which 5% was available for allocation on proportionate basis to Mutual Funds only. The reminder was available for allocation on proportionate basis to all QIBs, including Mutual Funds, subject to valid bids being received from them at or above the Issue Price. If atleast 60% of the Issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, not less than 10% of the Issue was available for allocation on a proportionate basis to non Institutional Bidders and not less than 30% of the Issue was available for allocation on proportionate basis to Retail individual bidders, subject to valid bids being received at or above the Issue Price.

The issue received 9,776 applications for 19,371,040 equity shares resulting in 3.87 times subscription. The details of the applications received in the issue from Qualified institutional Bidders, Non-Institutional and Retail Individual bidders are as under (Before technical rejections):

Category No. of Applications No. of Shares Subscription
Qualified Institutional Bidders 30 18,396,100 6.13
Non-Institutional Bidders 31 110,060 0.22
Retail Individual Bidders 9,715 864,880 0.58
TOTAL 9,776 19,371,040 3.87

Final Demand
The summary of the final demand at different bid prices is as under:

Bid Price No. of Shares % to Total Cumulative Total Cumulative % to total
290 19200 0.10 19565580 100.00
291 60 0.00 19546380 99.90
293 180 0.00 19546320 99.90
294 340 0.00 19546140 99.90
295 340 0.00 19545800 99.90
300 3440 0.02 19545460 99.90
305 240 0.00 19542020 99.88
309 640 0.00 19541780 99.88
310 6340 0.03 19541140 99.88
312 1120 0.01 19534800 99.84
315 300 0.00 19533680 99.84
317 20 0.00 19533380 99.84
320 3260 0.02 19533360 99.84
325 220 0.00 19530100 99.82
326 40 0.00 19529880 99.82
330 & cut off 19529840 99.82 19529840 99.82
Total 19565580 100.00

The Basis of Allocation was finalized in consultation with The Bombay Stock Exchange Limited ("BSE") on February 13, 2008. The final demand at different bid prices and allocation of shares in the following three categories is as under:

A. Allocation to Retail Individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at or above the issue Price of Rs.300/-per Equity Share, was finalized in consultation with BSE. The category was subscribed 0.563 times. The total number of Equity Shares allotted in this category is 845040 Equity Shares to 9469 applicants. 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
20 3262 34.45 65240 7.72 20 FIRM 65240
40 1678 17.72 67120 7.94 40 FIRM 67120
60 934 9.86 56040 6.63 60 FIRM 56040
80 498 5.26 39840 4.71 80 FIRM 39840
100 810 8.55 81000 9.59 100 FIRM 81000
120 171 1.81 20520 2.43 120 FIRM 20520
140 376 3.97 52640 6.23 140 FIRM 52640
160 222 2.34 35520 4.20 160 FIRM 35520
180 41 0.43 7380 0.87 180 FIRM 7380
200 190 2.01 38000 4.50 200 FIRM 38000
220 23 0.24 5060 0.60 220 FIRM 5060
240 23 0.24 5520 0.65 240 FIRM 5520
260 20 0.21 5200 0.62 260 FIRM 5200
280 25 0.26 7000 0.83 280 FIRM 7000
300 1188 12.55 356400 42.18 300 FIRM 356400
320 8 0.06 2560 0.30 320 FIRM 2560

B. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non institutional investors, who have bid at or above the Issue Price of Rs 300/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 0.199 times. The total number of shares allotted in this category is 99500 Equity Shares to 26 applicants. 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
320 3 11.54 960 0.96 320 FIRM 960
360 1 3.85 360 0.36 360 FIRM 360
400 2 7.69 800 0.80 400 FIRM 800
500 1 3.85 500 0.50 500 FIRM 500
600 1 3.85 600 0.60 600 FIRM 600
900 1 3.85 900 0.90 900 FIRM 900
1000 4 15.38 4000 4.02 1000 FIRM 4000
1500 3 11.54 4500 4.52 1500 FIRM 4500
2000 1 3.85 2000 2.01 2000 FIRM 2000
2240 1 3.85 2240 2.25 2240 FIRM 2240
3000 3 11.54 9000 9.05 3000 FIRM 9000
6060 1 3.85 6060 6.09 6060 FIRM 6060
10000 1 3.85 10000 10.05 10000 FIRM 10000
12120 1 3.85 12120 12.18 12120 FIRM 12120
15140 1 3.85 15140 15.22 15140 FIRM 15140
30320 1 3.85 30320 30.47 30320 FIRM 30320

C. Allocation to Qualified institutional Buyers
Allocation to QIBs have been done on a proportionate basis in consultation with BSE. The unsubscribed 654960 Equity Shares of Retail bidders and 400500 Shares of Non Institutional bidders are added to this category. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available 202773 and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares 3852687 on proportionate basis. The total number of shares allotted in this category is 4055460 Equity Shares to 29 applicants.

Category Fls/Banks MFs Flls Insurance
Companies
VCs Total
No.of Shares 28906 2233852 1347363 445339 0 4055460

The IPO Committee of the Board at its Meeting held at Chennai on February 13, 2008 has approved the basis of allocation of Equity Shares of the Issue and has allotted the shares to various applicants.
The CAN cum Refund Orders, intimation regarding Refund through electronic mode (ECS, RTGS, NEFT or Direct Credit) allotment advice and notices (where applicable) are being despatched 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 Equity Shares allocated to the 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 Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation are hosted on the website of Registrar to the Issue, Cameo Corporate Services Limited at
www.cameoindia.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:
CAMEO CORPORATE SERVICES LIMITED
Unit: Shriram EPC Limited 'Subramanian Building', No. 1, Club House Road, Chennai 600 002, India
Tel: +91 44 2846 0390 / 1989 / 0014/ 0015 / 1092 /1098 Fax: +91 44 2846 0129
Email: shriramepc@cameoindia.com Website: www.cameoindia.com

Place: Chennai
Date : 15.02.2008
For Shriram EPC Limited
Sd/-
T. Shivaraman
Managing Director & Chief Executive Officer

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF SHRIRAM EPC LIMITED.

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