|Basis of Allotment|
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KAVITA FABRICS LIMITED
Our Company was originally incorporated with the Registrar of Companies, Gujarat, Dadra and Nagar Havelli on October 18,2005 as Kavita Fabrics Private Limited. Pursuant to shareholders Resolution dated July 31,2012 the Company was converted into Public Limited Company and the name was changed to Kavita Fabrics Limited. For details of the changes in our name and Registered Office, refer "History and Certain Corporate Matters' on page 94 of the Prospectus. A copy of the Prospectus has been delivered to the office of the Registrar of Companies, Gujarat, Dadra and Nagar Havelli.
Registered Office: 105, Balaji Industrial Society-1, Udhna
Magdalla Road, Surat-395007, Gujarat, India;
PROMOTERS OF THE COMPANY: MR. HARISH CHANDAK, MR. SHAILESH CHANDAK, MRS. SUDHA CHANDAK, MRS. SARIKA CHANDAK
BASIS OF ALLOTMENT
PUBLIC ISSUE OF 12,75,000 EQUITY SHARES OF Rs. 10/- EACH ("EQUITY SHARES") OF KAVITA FABRICS LIMITED ("KFL" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT PRICE OF Rs. 40/- PER SHARE (THE "ISSUE PRICE"), AGGREGATING TO Rs 510 LACS ("THE ISSUE"), OF WHICH, 2,07,000 EQUITY SHARES OF Rs. 10/- EACH WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKERS TO THE ISSUE (AS DEFINED IN THE PROSPECTUS) (THE "MARKET MAKER RESERVATION PORTION"). THE ISSUE LESS THE MARKET MAKER RESERVATION PORTION I.E. THE ISSUE OF 10,68,000 EQUITY SHARES OF Rs. 10 EACH IS HEREIN AFTER REFERRED TO AS THE "NET ISSUE". THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 36.71% AND 30.75% RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY.
This being a Fixed Price Issue and in terms of Prospectus dated February 6,2013 and as per Regulation 43(4) of SEBI (ICDR) Regulations, 2009 wherein a minimum of 50 % of the Net Offer to Public shall be made available to Retail Individual Investors. 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 THE EQUITY SHARES IS RS 10/- EACH AND THE ISSUE PRICE IS Rs. 40
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, our Company is not required to obtain
an in-principle listing approval of the shares being offered in this Issue. However, our
Company has received an approval letter dated January 25,2013 from BSE for using its name
in the offer document for listing of our Shares on the SME platform of BSE.
All Applicants were allowed to participate in the Issue through APPLICATIONS 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").
The Issue has received 172 applications for 16,65,000 Equity Shares (Including Market Makers Application of 2,07,000 Equity Shares) resulting in 1.31 times subscription. This is after considering cheque return cases of 6 applications of 18000 Equity Shares. The details of the applications received in the Issue (before technical rejections but after cheque returns) are as follows:
Detail of the Applications Received (Before Technical Rejections & withdrawal of applications):
Detail of the Applications Received (After Technical Rejections & withdrawal):
Nil Rejection in across all categories.
The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - BSE Limited on March 5,2013.
A. Allocation to Market Makers (After Technical Rejections & Withdrawal): The Basis of Allotment to the Market Makers, at the issue price of Rs. 40/- per Equity Share, was finalized in consultation with BSE. The category was subscribed by 1.00 times. The total number of shares allotted in this category is 2,07,000 Equity shares in full out of reserved portion of 2,07,000 Equity Shares.
B. Allocation to Retail Individual Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs. 40/- per Equity Share, was finalized in consultation with BSE. The category was subscribed by 0.893 times. Due to under subscription, all the applicants in this category have been given full and firm allotment and the under subscribed 57,000 shares from Retail Individual Investors Category have been spilled over to Non-Institutional Investors Category.
C. Allocation to Non-Institutional Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to the Non Institutional Investors, at the issue price of Rs. 40/- per Equity Share, was finalized in consultation with BSE. The category was subscribed by 1.660 times including spill over 57,000 equity shares from Retail individual Investors category. The total number of shares allotted in this category is 5,91,000 Equity Shares to 11 successful applicants on proportionate basis. The category wise basis oi allotment is as under
The Board of Directors of the Company at its meeting held on March
6,2013 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 for the
transfer of the Equity Shares/dispatch of share certificates 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 / as
filled in the application form on or before March 8,2013. Further, the instructions to
Self Certified Syndicate Banks being processed on or prior to March 7,2013. In case the
same is not received within 10 days, investors may contact at the 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.
INVESTORS PLEASE NOTE:
BIGSHARE SERVICES PRIVATE LIMITED
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 KAVITA FABRICS LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus. KAVITA FABRICS LIMITED is proposing, subject to market conditions and other considerations, a public issue of its Equity Shares and has filed the Prospectus with the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. The Prospectus is available on the website of SEBI at www.sebi.gov.in and the website of the Lead Manager at www.intensivefiscal.com and website of the BSE at www.bseindia.com and website of Issuer Company at www.kavitafabrics.com. investors should note that investment in Equity Shares involves a high degree of risk. For details, investors should refer to and rely on the Prospectus including the section titled 'Risk Factors" on page 12 of the Prospectus. The Equity Shares have not been and will not be registered under the U.S. Securities Act (the "Securities Act") or any state securities law in United States and may not be Issued or sold within the United States or to, or for the account or benefit of, "U.S. persons" (as defined in the Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to the registration requirements of the Securities Act and applicable U.S. State Securities laws.