Basis of Allotment

SKS MICROFINANCE LIMITED

SKS MICROFINANCE LIMITED

(The Company was incorporated as SKS Microfinance Private Limited on September 22, 2003 under the Companies Act, 1956. Pursuant to a resolution of the shareholders passed on May 2,2009, the Company was converted into a public limited company and the word "private" was deleted from its name on May 20, 2009.
Registered and Corporate Office: Ashoka Raghupathi Chambers, D No. 1-10-60 to 62, Opposite to Shoppers stop,  Begumpet, Hyderabad 500 016 Tel: (91 40) 4452 6000; Fax: (91 40) 4452 6001 Contact Person: Mr. S.K. Bansal, Company Secretary and Compliance Officer
Website: www.sksindia.com Email: skscomplianceofficer@sksindia.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 16,791,579 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 985 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 975 PER EQUITY SHARE) FOR QUALIFIED INSTITUTIONAL BIDDERS AND NON-INSTITUTIONAL BIDDERS AND RS. 935 FOR RETAIL INDIVIDUAL BIDDERS (INCLUDING A SHARE PREMIUM OF RS. 925 PER EQUITY SHARE) AGGREGATING UP TO RS. 16,287.83 MILLION (THE "ISSUE") CONSISTING OF A FRESH ISSUE OF 7,445,323 EQUITY SHARES ("FRESH ISSUE") BY SKS MICROFINANCE LIMITED ("SKS" OR THE "COMPANY" OR THE "ISSUER") AND AN OFFER FOR SALE OF 9,346,256 EQUITY SHARES ("OFFER FOR SALE") BY SEQUOIA CAPITAL INDIA II LLC, SKS MUTUAL BENEFIT TRUST - NARAYANKHED, SKS MUTUAL BENEFIT TRUST - JOGIPET, SKS MUTUAL BENEFIT TRUST - MEDAK, SKS MUTUAL BENEFIT TRUST - SADASIVAPET, SKS MUTUAL BENEFIT TRUST - SANGAREDDY, KISMET MICROFINANCE AND MAURITIUS UNITUS CORPORATION (THE "SELLING SHAREHOLDERS"). THE FRESH ISSUE AND THE OFFER FOR SALE ARE JOINTLY REFERRED TO HEREIN AS THE "ISSUE". THE ISSUE WILL CONSTITUTE 21.6% OFTHE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY*.
# A discount of Rs.50 to the Issue Price determined pursuant to completion of the Book Buildng Process has been offered to Retail Individual Bidders (the "Retail Discount").
## The Company has allotted 43,39,111 Equity Shares to Anchor Investors at Rs. 985/- per Equity Shares in accordance with the SEBI regulations.

ISSUE PRICE: Rs. 985 FOR QUALIFIED INSTITUTIONAL BIDDERS AND NON-INSTITUTIONAL BIDDERS AND RS. 935 FOR RETAIL INDIVIDUAL BIDDERS.

THE FACE VALUE OF THE EQUITY SHARE IS RS. 10 EACH AND THE ISSUE PRICE IS 98.5 TIMES FOR QUALIFIED INSTITUTIONAL BIDDERS AND NON-INSTITUTIONAL BIDDERS AND 93.5 FOR RETAIL INDIVIDUAL BIDDERS.

In terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 ("SCRR"), this being an issue for less than 25% of the post-Issue capital of the Company, the Issue is being made through the 100% Book Building Process wherein at least 60% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIB). 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 10% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. If at least 60% of the Issue cannot be allotted to QIBs, then the entire application money shall be refunded forthwith. Potential investors may participate in this Issue through an Application Supported by Blocked Amount ("ASBA") process providing details about the bank account which will be blocked by the Self Certified Syndicate Banks ("SCSBs") for the same. All investors other than QIBs can participate through the ASBA process. The Issue received 180,570 applications for 192,062,171 equity shares at the Issue Price resulting in 11.44 times subscription. The details of the applications received in the Issue at the Issue Price from Qualified Institutional Buyers, Non-Institutional, Retail Individual Bidders and Anchor Investor categories are as under: (Before technical rejections)

Sr. No. Category No. of Applications Received No. of Equity Shares No. of times subscribed
A Retail Individual Bidders 179682 13926213 2.76
B Non Institutional Bidders 684 30398627 18.10
C Qualified Institutional Bidders 168 143398220 20.33
D Anchor Investors 36 4339111 1.44
Total 180570 192062171

Final Demand
A summary of the final demand as per the BSE and the NSE as on the Bid/ Issue Closing Date at different bids is as detailed hereunder:

Bid Price No. of Shares % to total Cumulative Total Cumulative % of Total
850 2482319 1.279 2482319 1.279
851 322 0.000 2482641 1.280
852 560 0.000 2483201 1.280
854 14 0.000 2483215 1.280
855 469 0.000 2483684 1.280
856 77 0.000 2483761 1.280
857 63 0.000 2483824 1.280
858 7 0.000 2483831 1.280
860 139783 0.072 2623614 1.352
861 2604 0.001 2626218 1.354
862 392 0.000 2626610 1.354
863 672 0.000 2627282 1.354
865 77 0.000 2627359 1.354
870 833 0.000 2628192 1.355
871 7 0.000 2628199 1.355
875 4648 0.002 2632847 1.357
876 49 0.000 2632896 1.357
880 1064 0.001 2633960 1.358
883 161 0.000 2634121 1.358
884 70 0.000 2634191 1.358
885 1176 0.001 2635367 1.358
886 70 0.000 2635437 1.358
888 7 0.000 2635444 1.358
890 12789 0.007 2648233 1.365
891 21 0.000 2648254 1.365
892 261520 0.135 2909774 1.500
895 525 0.000 2910299 1.500
899 28 0.000 2910327 1.500
900 50631 0.026 2960958 1.526
901 21 0.000 2960979 1.526
902 84 0.000 2961063 1.526
905 2254 0.001 2963317 1.527
909 77 0.000 2963394 1.527
910 19488 0.010 2982882 1.537
911 7 0.000 2982889 1.537
912 210 0.000 2983099 1.537
915 8414 0.004 2991513 1.542
917 147 0.000 2991660 1.542
918 140 0.000 2991800 1.542
919 141330 0.073 3133130 1.615
920 23254 0.012 3156384 1.627
922 7 0.000 3156391 1.627
924 154 0.000 3156545 1.627
925 2164414 1.116 5320959 2.742
927 7 0.000 5320966 2.742
928 14 0.000 5320980 2.742
930 1036 0.001 5322016 2.743
931 14 0.000 5322030 2.743
933 105 0.000 5322135 2.743
935 150591 0.078 5472726 2.821
936 826 0.000 5473552 2.821
937 105 0.000 5473657 2.821
940 1442 0.001 5475099 2.822
941 35 0.000 5475134 2.822
942 98 0.000 5475232 2.822
945 161 0.000 5475393 2.822
950 55489 0.029 5530882 2.851
951 210 0.000 5531092 2.851
952 249473 0.129 5780565 2.979
954 63 0.000 5780628 2.979
955 98 0.000 5780726 2.979
957 518 0.000 5781244 2.980
960 126 0.000 5781370 2.980
963 49 0.000 5781419 2.980
965 35770 0.018 5817189 2.998
970 126 0.000 5817315 2.998
971 511 0.000 5817826 2.998
975 35798 0.018 5853624 3.017
980 5701682 2.939 11555306 5.955
981 14 0.000 11555320 5.955
982 63 0.000 11555383 5.955
983 105 0.000 11555488 5.956
984 112 0.000 11555600 5.956
985 169402310 87.307 180957910 93.263
Cut off price 13071989 6.737 194029899 100.000
194029899 100.000

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ("BSE") on August 11, 2010.

A. Allocation to Retail Individual Bidders (Including Applications Supported by Blocked Amount ("ASBA")) (After Technical Rejections)

The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs.985/- per Equity Share, was finalized in consultation with BSE (Rs.50 discount on the issue price was given to the retail individual investors and hence the offer price for this category is Rs.935/- per equity share). This category has been subscribed to the extent of 2.72 times. There were 25973 applications for 80122931 equity shares made under ASBA process. Of these 25170 applications for 74021584 equity shares were found valid and on proportionate basis the Company has allotted to 22854 investors aggregating to 4383319 shares. The total number of shares allotted in Retail Individual Investor category is 5,037,474 Equity Shares which were allotted to 165370 successful applicants. The category-wise details of the Basis of Allocation are as under:

Category No. of
Applications
% to
total
Total No.
of Equity
Shares applied
% of
total
No. of
Equity
Shares
allocated
Ratio Total No.
of Equity
Shares
allocated
7 12859 7.30 90013 0.66 7 6: 17 31766
14 7838 4.45 109732 0.80 7 7: 10 38409
21 6419 3.65 134799 0.98 8 FIRM 51352
28 4133 2.35 115724 0.84 10 FIRM 41330
35 3605 2.05 126175 0.92 13 FIRM 46865
42 2044 1.16 85848 0.63 15 FIRM 30660
Additional 1 1 :46 44
49 7639 4.34 374311 2.73 18 FIRM 137502
56 2107 1.20 117992 0.86 21 FIRM 44247
63 889 0.50 56007 0.41 23 FIRM 20447
70 1989 1.13 139230 1.01 26 FIRM 51714
77 749 0.43 57673 0.42 28 FIRM 20972
84 695 0.39 58380 0.43 31 FIRM 21545
91 705 0.40 64155 0.47 33 FIRM 23265
98 124371 70.65 12188358 88.85 36 FIRM 4477356

B. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Bidders, who have bid at the Issue Price of Rs.985/- per Equity Share or above, was finalized in consultation with BSE. This category has been subscribed to the extent of 17.69 times. Overall 484 applications for 1679157 equity shares were found valid and they were considered for allotment. The category-wise details of the Basis of Allocation are as under:

Category No. of
Applications
% to
total
Total No.
of Equity
Shares applied
% of
total
No. of
Equity
Shares
allocated
Ratio Total No.
of Equity
Shares
allocated
105 32 6.50 3360 0.01 7 3:4 168
1001 1 0.20 1001 0.00 57 FIRM 57
4900 1 0.20 4900 0.02 277 FIRM 277
11004 1 0.20 11004 0.04 622 FIRM 622
40600 2 0.41 81200 0.27 2295 FIRM 4590
100002 1 0.20 100002 0.34 5652 FIRM 5652
280000 1 0.20 280000 0.94 15824 FIRM 15824
1015224 3 0.61 3045672 10.25 57375 FIRM 172125
1269030 2 0.41 2538060 8.54 71719 FIRM 143438
2030455 2 0.41 4060910 13.67 114749 FIRM 229498

C. Allocation to QIBs
The Basis of Allocation to the Qualified Institutional Bidders, who have bid at the Issue price of Rs.985/- per Equity Share was finalized on the price priority basis. Overall 166 applications for 137576985 Equity Shares were found valid and the quantum of shares allotted to this category is 7052464. The summary of allotment is as under:

Category Fls/Banks Flls MFs ICs PFs Others Total
No. of Equity Shares allocated 1020627 6811341 1642260 600720 6716631 16791579

D. Anchor Investors

The Company allotted 3022484 equity shares to 36 Anchor Investors in consultation with the Lead Managers at a price of Rs. 985/- per Equity Share. The IPO Committee of the Board of Directors of the Company at its Meeting held at Hyderabad on 12th August, 2010 has approved the basis of allocation of Equity Shares of the Issue and has accordingly allotted the Equity Shares to the Bidders.

The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on or prior to 13th August, 2010. Further, the instructions to Self Certified Syndicate Banks have been dispatched on or prior to 13th August, 2010. In case the same is not received within 10 days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Account details as registered, if any, with the depositories. The Equity Shares allotted 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 the Bombay Stock Exchange Limited and National Stock Exchange of India Limited by 16th August, 2010.

INVESTORS PLEASE NOTE
This details of the allocation made has been hosted on the website of Registrar to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.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 Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted andpayment details at the address given below:

Karvy Computershare Private Limited
Unit: SKS Microfinance Limited
plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur
Hyderabad - 500 081, Fax: 040-23420814
Email: einward.ris@Karvy.com

TOLL FREE - HELPLINE NUMBER 1-800-3454001

Place : Hyderabad
Date : 14th August, 2010
For SKS Microfinance Limited
Sd/-
S.K.Bansal
Company Secretary

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 SKS MICROFINANCE LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

Close