GANGOTRI TEXTILES LIMITED

(Gangotri Textiles was incorporated on 26th July 1989 under the Companies Act, 1956 as a private limited company
vide Registration No. 181-0-2491.The Company was subsequently converted into a public limited company and
received a fresh Certificate of Incorporation dated 1st January, 1993)

Registered Office: 473/2, P.K.D. Nagar, Peelamedu, Coimbatore 641 004.
Tel.: 91 422 2576742, Fax: 91 422 2576742, E-mail: shares@gangotritextiles.com;
website: www.gangotritextiles.com, Compliance Officer: Mr. T Govindharajan

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 1,34,14,634 EQUITY SHARES OF RS. 5/- EACH FOR CASH AT A PRICE OF RS.41/
(INCLUDING PREMIUM OF RS.36/-) PER SHARE AGGREGATING RS. 5500LAKHS (HEREINAFTER REFERRED TO AS "THE ISSUE").THE ISSUE COMPRISES A NET OFFER TO THE PUBLIC OF 1,16,70,732 EQUITY SHARES OF RS. 5/- EACH AGGREGATING TO RS. 4785 LACS (" NET OFFER") AND A RESERVATION FOR EMPLOYEES OF GANGOTRI TEXTILES LIMITED OF UPTO 4,02,439 EQUITY SHARES OF RS. 5/- EACH AGGREGATING TO RS. 165 LAKHS AND A RESERVATION OF UPTO 13,41,463 EQUITY SHARES OF RS. 5/- EACH FOR THE EXISTING'RETAIL SHAREHOLDERS OF THE COMPANY AGGREGATING TO RS. 550 LAKHS. THE ISSUE WOULD CONSTITUTE 14.13% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.

The Issue is being made through the 100% book building process where upto 50% of the Net Offer will be
allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB Portion
specifically reserved for Mutual Funds). Further, not less than 15% of the Net Offer will be available for allocation
on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer will be available for
allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above
the Offer Price.
The Issue received 6399 applications for 13554475 equity shares (including reserved category for employees
and shareholders of the Company) resulting in 1.01 times subscription. The details of valid applications received
from Retail, Non Institutional Investor, Qualified Institutional Investor, Employees and Eligible shareholders categories        are as    under (After Cheque Return):

Final Demand
A sample of final demand at different bid prices is as under:

The Basis of Allotment was finalised with the Bombay Stock Exchange Limited on June 02, 2006.

Allotment to Retail Investors

The application from Retail Investors who have bid at Cut-Off or above the Issue Price of Rs. 41/- per equity
shares have been considered for allotment. The category was subscribed 0.64 times. All the investors who have
applied have been allotted equity shares on a Firm Basis. The category wise details of the Basis of Allotment
are as under:

Allotment to Non Institutional Investors (individuals who have applied for 2250 shares and above:
(Bodies Corporate/Institutions)

The category was subscribed 3.96 times. All the investors who have applied for 2250 shares and above have
been allotted equity shares on a Firm and Proportionate Basis. The category wise details of the Basis of
Alloment are as under:

Allotment to QIBs

The QIB portion was subscribed 0.63 times. All the investors who have applied have been allotted equity shares
on a Firm Basis. Undersubscription has been spilled overto the Non Institutional Investor Category. The details
are as under:

Allotment to Employees

The Employees Reservation portion was subscribed 0.08 times. All Employees who have applied have been
allotted shares on a Firm Basis. Undersubscription has been spilled over to the Non Institutional Investor Category.

Allotment to Eligible Shareholders

The Shareholders Reservation portion was subscribed 0.17 times. All Shareholders who have applied have
been allotted shares on a Firm Basis. Undersubscription has been spilled over to the Non Institutional Investor
Category.
Allotment Advices and Refund Orders have been despatched to the investors on June 03, 2006.The refund
orders have been despatched to the First/Sole applicant at the address registered with the Depositories. In
case the same is not received within ten days, investors may contact the Registrars at the address given below.
The Company proposes to submit the Listing Application to BSE & N SE on June 05, 2006 and is in the process
of completing all formalities for obtaining permission for listing and trading of the equity shares allotted pursuant
to the public issue on the BSE and NSE.
Important Note:
Investors should note that the new equity shares of the Company allotted under the Public Issue shall
have the same ISIN as the existing listed equity shares. Investors should note that though the new
equity shares will be credited to their demat accounts, they can trade In the new equity shares only
after ascertaining that trading approvals have been Issued and notified by the BSE and NSE. The
Information would also be posted on the website of BSE (www.bseindia.com) and NSE
(www.nseindia.com)
Investors may please note that the details of the allocation made are being hosted on the website of
the Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com
All further 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 the shares bid for, name
of the member of the syndicate and the place where the bid was submitted and the payment details at the
address given below:

                         INTIME SPECTRUM REGISTRY LIMITED
                         C-13, Pannalal Silk Mills Compound, LBS Marg, Bhandup (W), Mumbai-400078.
      Tel: 91 22 2596 0320-28, Fax: 91 22 2596 0329,
     e-mail: gangotri-fpo@intimespectrum.com,
                                           Website: www.intimespectrum.com