Basis of Allotment

RCL RETAIL LIMITED

RCL RETAIL LIMITED

(The Company was originally incorporated in Chennai as "RCL Retail Private Limited" on 29th September, 2010 under the Companies Act, 1956 vide certificate of incorporation issued by the Registrar of Companies, Chennai Tamil Nadu. The Company was subsequently converted in to a public limited company and consequently name was changed to "RCL Retail Limited" vide fresh certificate of incorporation dated 5th April, 2011 issued by the Registrar of Companies, Chennai, Tamil Nadu. For further details in relation to the changes to the name of the Company, please refer to the section titled "Our History and Corporate Structure" beginning on page 75 of the Prospectus.)

Registered Office & Corporate Office: 84/85, Walltax Road, II Floor, Chennai-600 003; Tel: +91-44-2534 5283, Fax: +91-44-2534 5275 E-Mail: cs@rclretail.com; Website: www.rclretail.com
Contact Person & Compliance Officer: Mr. M Devendiran, Company Secretary & Compliance Officer;

Promoters of the Company: NITESH LODHA & SHREYANS LODHA

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 57,95,000 EQUITY SHARES OF RS. 10/- EACH ("EQUITY SHARES") OF RCL RETAIL LIMITED ("RCL" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS. 10/- PER SHARE (THE "ISSUE PRICE"), AGGREGATING TO RS. 579.50 LACS ("THE ISSUE"). THE ISSUE COMPRISES PROMOTER'S CONTRIBUTION OF 21,05,000 EQUITY SHARES OF RS. 10 EACH AT A PRICE OF RS. 10 EACH PER EQUITY SHARE AGGREGATING TO RS. 210.50 LACS ("PROMOTER'S CONTRIBUTION") AND 6,15,000 EQUITY SHARES OF RS. 10 EACH AT A PRICE OF RS. 10 EACH PER EQUITY SHARE AGGREGATING TO RS. 61.50 LACS, WHICH WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKERS TO THE ISSUE (THE "MARKET MAKER RESERVATION PORTION") AND NET ISSUE TO THE PUBLIC OF 30,75,000 EQUITY SHARES OF RS. 10 EACH AT A PRICE OF RS. 10 EACH PER EUITY SHARE AGGREGATING TO RS. 307.50 LACS (HEREINAFTER REFERRED TO AS THE "NET ISSUE"). THE ISSUE WILL CONSTITUTE 47.11% OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY AND NET ISSUE WILL CONSTITUTE 25.00% OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY.

In terms of Prospectus dated 17th September, 2012, and as per Regulation 43 (4) of SEBI (ICDR) Regulations, 2009 wherein a minimum of 50 % of the Net Offer of Shares to the Public shall initially be made available for allotment to Retail Individual Investors as the case may be. The balance net offer of shares to the public shall be made available for allotment to a) individual applicants other than retail investors and b) other investors including corporate bodies/institutions irrespective of no. of shares applied for. The unsubscribed portion of the net offer to any one of the categories specified in (a) or (b) shall/may be made available for allocation in any other category, if so required.

Explanation: for the purpose of Regulation 43 (4) of SEBI (ICDR) Regulations, 2009, if the retail individual investor is entitled to more than fifty percent, on proportionate basis, the retail individual investors shall be allocated that higher percentage.

THE FACE VALUE OF OUR EQUITY SHARES IS RS. 10 EACH AND THE ISSUE PRICE IS AT PAR OF THE FACE VALUE. ISSUE OPENED ON 27TH SEPTEMBER, 2012 AND CLOSED ON 1ST OCTOBER 2012.

The Equity Shares offered through the Prospectus are proposed to be listed on the SME platform of BSE Limited ("BSE") in terms of the chapter XB of the SEBI (ICDR) Regulations, 2009 as amended from time to time, Company is not required to obtain an in-principle approval of the shares being offered in this Issue. However Company has received an approval letter dated 13th September, 2012 from BSE for using its name in the offer document for listing of our Shares on the SME platform of BSE. The designated stock exchange is BSE Limited.

All Applicants were allowed to participate in the Issue through APPLICATION SUPPORTED BY BLOCKED AMOUNT ("ASBA") process by providing the details of the respective bank accounts in which the corresponding application amounts were blocked by Self Certified Syndicate Banks (the "SCSBs").

SUBSCRIPTION DETAILS

The Issue has received 249 applications for 70,75,000 Equity Shares (Including Promoters Contribution of 21,05,000 Equity Shares and Market Maker Application of 6,20,000 Equity Shares) resulting 1.22 times subscription. After considering, cheque return cases of 11 applications of 1,10,000 Equity Shares, the Issue was subscribed 1.20 times. The details of the applications received in the Issue (before technical rejections) are as follows:

Detail of the Applications Received (Before Technical Rejection):

CATEGORY NO. OF APPLICATIONS NO. OF EQUITY SHARES SUBSCRIPTION
Promoter's 2 2105000 1.00
Market Makers 1 620000 1.008
Other than Retail Individual Investor's 13 1530000 0.99
Retail Individual Investor's 222 2710000 1.76
TOTAL 238 6965000 1.20

The details of applications rejected by the Registrar on technical grounds are detailed below:

CATEGORY NO. OF APPLICATIONS NO. OF EQUITY SHARES
Promoter's Nil Nil
Market Makers Nil Nil
Other than Retail Individual Investor's Nil Nil
Retail Individual Investor's 3 30000
TOTAL 3 30000

Detail of the Applications Received (After Technical Rejection):

CATEGORY NO. OF APPLICATIONS NO. OF EQUITY SHARES SUBSCRIPTION
Promoter's 2 2105000 1.00
Market Makers 1 620000 1.008
Other than Retail Individual Investor's 13 1530000 0.99
Retail Individual Investor's 219 2680000 1.74
TOTAL 235 6935000 1.197

ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - BSE Limited on 10th October, 2012.

A. Allocation to Promoter (After Technical Rejections): The Category was subscribed by 1.00 times. The total number of shares allotted in this category is 21,05,000 Equity Shares.

B. Allocation to Market Maker (After Technical Rejections): The Basis of Allotment to the Market Maker, at the issue price of Rs. 10/- per Equity Share, was finalised in consultation with BSE. The category was subscribed by 1.008 times. The total number of shares allotted in this category is 6,20,000 Equity shares consisting reserved portion of 6,15,000 Equity Shares and additional 5000 Equity Shares for the purpose of rounding off to the nearest multiple of 10,000 Equity Shares (Lot Size).

C. Allocation to Retail Individual Investors (After Technical Rejections): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs. 10/-per Equity Share, was finalized in consultation with BSE. The category was subscribed by 1.74 times. Total number of shares allotted in this category is 19,60,000 Equity Shares including additional 2455 Equity Shares for the purpose of rounding off to the nearest multiple of 10,000 Equity Shares (Lot Size). The category wise basis of allotment is as under:

No. of Shares Applied for (Category wise) No. of Applications Received % to
total
Total No.of Equity Shares applied % of
total
Proportionate Shares Available Allocation
per Applicant (Before Rounding Off)
Allocation
per Applicant (After Rounding Off)
Ratio of Allottees To The Applicants Total
No.of Equity Shares allotted
Surplus/ (Deficit)
10000 170 77.63 1700000 63.43 1241726.31 7304.27 10000 32:37 1470000 228273.69
20000 49 22.37 980000 36.57 715818.69 14608.54 10000 FIRM 490000 (225818.69)
TOTAL 219 100 2680000 100 1957545 ... ... ... 1960000 2455

D. Allocation to Non Retail Investors (After Technical Rejections): The Basis of Allotment to the Non Retail Investors, at the issue price of Rs. 10/- per Equity Share, was finalized in consultation with BSE. The category was subscribed by 0.99 times. Total number of shares allotted in this category is 11,20,000 Equity Shares including additional 2545 Equity Shares for the purpose of rounding off to the nearest multiple of 10,000 Equity Shares (Lot Size). The category wise basis of allotment is as under:

No. Of
Shares Applied for (Category
wise)
No. Of Applications Received % to
total
Total No. of Equity Shares applied % of
total
Proportionate Shares Available Allocation
per Applicant (Before Rounding Off)
Allocation
per Applicant (After Rounding Off)
Ratio of Allottees To The Applicants Total No. of Equity Shares allotted Surplus/ (Deficit)
30000 1 7.69 30000 1.96 21910.88 21910.88 20000 FIRM 20000 (1910.88)
50000 7 53.85 350000 22.88 255626.96 36518.14 30000 FIRM 210000 (45626.96)
Additional Allotment 10000 5:7 50000 50000
70000 1 7.69 70000 4.58 51125.39 51125.39 50000 FIRM 50000 (1125.39)
80000 1 7.69 80000 5.23 58429.02 58429.02 60000 FIRM 60000 1570.98
100000 1 7.69 100000 6.54 73036.27 73036.27 70000 FIRM 70000 (3036.27)
300000 1 7.69 300000 19.61 219108.82 219108.82 220000 FIRM 220000 891.18
600000 1 7.69 600000 39.22 438217.65 438217.65 440000 FIRM 440000 1782.35
TOTAL 13 100 1530000 100 1117455 ... ... ... 1120000 2545

The Issue has been authorized by the shareholders of the Company pursuant to a special resolution dated 13th July, 2012 under section 81 (1 A) of the Companies Act. The members of the Company vide its special resolution dated 20th September, 2012 has accorded their consent increase/ alter/vary the issue size due to rounding off/ oversubscription/ under subscription etc.

The Board of Directors of the Company at its meeting held on 10th October, 2012 has taken on record the Basis of Allocation of Equity Shares approved by the Designated Stock Exchange viz. BSE and has authorized the corporate action forthe transfer of the Equity Shares to various successful applicants.

The CAN-cum-Refund Orders and allotment advice and/or notices are being dispatched to the address of the Applicants as registered with the depositories on 12th October, 2012. Further, the instructions to Self Certified Syndicate Banks have been dispatched on or priorto 12th October, 2012. In case the same is not received within 10 days, investors may contact atthe address given below. The Equity 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 the SME Platform of BSE Limited within Twelve working days from the date of the closure of the Issue. The trading is proposed to be commenced on or before 16th October, 2012 subject to receipt of listing and trading approvals from BSE Limited.

INVESTORS PLEASE NOTE

The details of the allotment made would also be hosted on the website of the 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 applicants, serial number of the Application Form, number of shares applied for and Bank Branch where the application had been lodged and payment details atthe address of the Registrar given below:

CAMEO CORPORATE SERVICES LTD.
Submaramanian Building, 1 Club House Road, Chennai - 600 002.
Tel No.: +91-44-28460390/1989 Fax No.: +91-44-28460129
Website: www.cameoindia.com E-mail ID: cameo@cameoindia.com

Place: Chennai
Date : 12.10.2012

For RCL Retail Limited
sd/-
Nitesh Lodha
Managing Director

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 RCL RETAIL LIMITED.

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

RCL RETAIL LIMITED, is proposing, subject to market conditions and other considerations, a public issue of equity shares and has filed the Prospectus with the Registrar of companies, Chennai, Tamil Nadu. The Prospectus is available on the website of SEBI at www.sebi.gov.in, the website of the Lead Manager at www.16anna.com and the website of BSE at www.bseindia.com. The investors should note that investing in equity shares involves a high degree of risk and for details relating to the same, see section titled "Risk Factors'on Page No. 09 of the Prospectus. This document is not an offer of securities for sale in the United States or elsewhere. The shares of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("U.S. Securities Act") or any State Securities Laws in the United States, and may not be offered or sold within the Jnited States or to, or for the account or benefit of U.S persons (as defined in Regulation S), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. State Securities Laws.

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