Basis of Allotment

TATA CONSULTANCY SERVICES LTD
TATA CONSULTANCY SERVICES LTD.

(Tata Consultancy Services Limited was incorporated as RR Donnely(India) Private Limited on January 19, 1995. The name of RR Donnelley (India) Pvt. Limited was changed to Orchid Print India Limited on March 19, 2001. The name was changed to Tata Consultancy Services Limited on December 17,2002).

BASIS OF ALLOCATION
PUBLIC ISSUE OF 55,452,600 EQUITY SHARES OF Re 1/- EACH AT A PRICE OF Rs. 850/- PER SHARE FOR CASH AGGREGATING Rs. 47,134.7 MILLION CONSISTING OF A FRESH ISSUEOF 22,775,000 EQUITY SHARES BY TATA CONSULTANCY SERVICES LIMITED ("TCS LTD.") AND AN OFFER FOR SALE OF 32,677,600 EQUITY SHARES BY TATA SONS LIMITED ("TATA SONS") AND CERTAIN OTHER SHAREHOLDERS OF TCS LTD. (TOGETHER WITH TATA SONS, "THE SELLING SHAREHOLDERS"). THE FRESH ISSUE AND THE OFFER FOR SALE ARE JOINTLY REFFERED TO HEREIN AS THE "OFFER". THE OFFER INCLUDES A RESERVATIONOF 5,545,260 EQUITY SHARES BY THE EMPLOYEES AND DIRECTORS IN INDIA OF THE TCS DIVISION, TCS LTD. AND TATA SONS ("EMPLOYEE RESERVATION PORTION"). A GREENSHOE OPTION OF 8,317,880 EQUITY SHARES IS OFFERED BY TATA SONS FOR CASH AT A PRICE OF RS 850/- PER EQUITY SHARE  AGGREGATING TO Rs 7,070.2 MILLION.THE OFFER AND THE GREEN SHOE OPTION AGGREGATING RUPEES 54,204.9 MILLION.

THE FACE VALUE OF THE EQUITY SHARES IS Re.1 AND THE OFFER PRICE IS 850 TIMES OF THE FACE VALUE.THE OFFER CONSTITUTE 13.33% OF THE FULLY DILUTED POST OFFER PAID UP CAPITAL OF TCS LTD.

The Issue was made through the 100% book-building scheme wherein 60% of the Issue was to be allocated on a discretionary basis to Qualified Institutional Buyers. Further, not less than 15% of the Issue was to be made available for allocation on a proportionate to Non-Institutional Bidders and not less than 25% of the Issue was to be made available for allocation on a proportionate basis to Retail Bidders, subject to valid Bids being received at or above the Issue Price.

TCS Ltd. received 1,351,355 bids for 490,084,350  equity shares resulting in 7.69 times subscription. TCS ltd. has decided to exercise the Green Shoe Option. The details of the Applications received in the offer from Employees, Retail, Non-Institutional and Institutional categories are as under :

Category No. of Applications No. of shares bid Subscription
Qualified Institutional Buyers 466 249,029,648 7.00 times
Non Institutional Investors 63,374 179,272,925 19.21 times
Retail Investors 1,187,153 43,964,820 2.91 times
Employees 18,598 4,932,364 0.77 times
(a) Including bids received at cut-off price.

(b). Calculated on the reserved allocation size including the Green Shoe Option at or above the issue price of Rs.850/-

Final Demand

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

Bid Price No. of Shares % of Total Cumulative Shares Cumulative %
Upto 849 29,642,403 6.0484 29,642,403 6.0484
850 298,312,196 60.8696 327,954,599 66.918
851 521,934 0.1065 328,476,533 67.0245
852 159,670 0.0326 328,636,203 67.0571
853 30,646 0.0063 328,666,849 67.0633
854 16,443 0.0034 328,683,292 67.0667
855 453,516 0.0925 329,136,808 67.1592
856 21,903 0.0045 329,158,711 67.1637
857 52,115 0.0106 329,210,826 67.1743
858 13,314 0.0027 329,224,140 67.177
859 25,242 0.0052 329,249,382 67.1822
860 3,681,286 0.7512 332,930,668 67.9333
861 106,064 0.0216 333,036,732 67.955
862 26,145 0.0053 333,062,877 67.9603
863 17,647 0.0036 333,080,524 67.9639
864 35,455 0.0072 333,115,979 67.9712
865 135,065 0.0276 333,251,044 67.9987
866 11,515 0.0023 333,262,559 68.0011
867 13,265 0.0027 333,275,824 68.0038
868 14,245 0.0029 333,290,069 68.0067
869 6,286 0.0013 333,296,355 68.008
870 505,463 0.1031 333,801,818 68.1111
871 31,283 0.0064 333,833,101 68.1175
872 16,968 0.0035 333,850,069 68.1209
873 5,705 0.0012 333,855,774 68.1221
874 3,990 0.0008 333,859,764 68.1229
875 29,507,947 6.0210 363,367,711 74.1439
876 36,820 0.0075 363,404,531 74.1514
877 22,939 0.0047 363,427,470 74.1561
878 11,452 0.0023 363,438,922 74.1584
879 3,591 0.0007 363,442,513 74.1592
880 447,181 0.0912 363,889,694 74.2504
881 4,599 0.0009 363,894,293 74.2514
882 11,221 0.0023 363,905,514 74.2536
883 2,989 0.0006 363,908,503 74.2543
884 3,304 0.0007 363,911,807 74.2549
885 4,461,849 0.9104 368,373,656 75.1654
886 854 0.0002 368,374,510 75.1655
887 3,101 0.0006 368,377,611 75.1662
888 3,794 0.0008 368,381,405 75.1669
889 4,200 0.0009 368,385,605 75.1678
890 424,774 0.0867 368,810,379 75.2545
891 17,878 0.0036 368,828,257 75.2581
892 349,069 0.0712 369,177,326 75.3293
893 1,494 0.0003 369,178,817 75.3296
894 1,092 0.0002 369,179,909 75.3299
895 4,837 0.0010 369,184,746 75.3309
896 203 0.0000 369,184,949 75.3309
897 2,275 0.0005 369,187,224 75.3314
898 4,235 0.0009 369,191,459 75.3322
899 34,524 0.0070 369,225,983 75.3393
900 80,239,362 16.3726 449,465,345 91.7118
99999 40,619,005 8.2882 490,084,350 100.00
  490,084,350 100.00  
The Basis of Allotment was finalized in consultation with The National Stock Exchange of India Limited ("NSE") on August 18, 2004.

A) Employees

The Basis of  Allocation to the employees and Directors in India of the TCS Division, TCS Ltd. and Tata Sons, who have bid at cut-off or at or above the Issue Price of Rs. 850/- per Equity Share, was finalized in consultation with NSE. The total number of shares allotted in this category is 4,930,156. Full and firm allotment has been done to all valid applications. The undersubscribed shares of the employee reservation portion being 1,446,892 Equity Shares have been apportioned for allocation in the Retail and the Non Institutional category in the ratio of 50:50.

B) Allocation to Retail Investors

The Basis of Allocation to the Retail Investors, who have bid at cut-off or at or above the Issue Price of Rs. 850/- per Equity Share, was finalized in consultation with NSE. The category was oversubscribed 2.862472 times. The total number of shares allotted in this category is 15,071,806 Equity Shares. In this category there are 7,092.54 allottees per Rs. 100,000 of offer size. The category-wise details of the Basis of Allocation is as under :

Category No. of Applns. % to Total No. of Shares Applied % to Total No. of Shares Allocated Ratio Total Shares Allocated
7 107,069 9.21 749,483 1.74 7 6:17 264,530
14 120,528 10.37 1,687,392 3.91 7 4:5 674,954
21 106,380 9.15 2,233,980 5.18 7 Firm 744,660
28 65,324 5.62 1,829,072 4.24 10 Firm 653,240
35 48,505 4.17 1,697,675 3.94 12 Firm 582,060
42 34,139 2.94 1,433,838 3.32 15 Firm 512,085
49 656,001 56.44 32,144,049 74.51 17 Firm 11,152,017
56 24,413 2.10 1,367,128 3.17 20 Firm 488,260
C) Allocation to Non Institutional Investors

The Basis of Allocation to the Non Institutional Investors, who have bid for at or above the Issue Price of Rs. 850/- per Equity Share, was finalized in consultation with NSE. The category was oversubscribed 19.150314 times. The total number of Shares allotted in this category is 9,332,459 Equity Shares.. In this category there 596.69 allottees per Rs. 100,000 of offer size. A sample of category-wise details of the Basis of Allocation is As under :

Category Number of applications % to total NO. of Shares % to total No. of Shares Allocated Ratio Total Shares Allocated
63 919 1.51 57,897 0.03 7 1:2 3,220
70 2,006 3.29 140,420 0.08 7 1:2 7,021
77 566 0.93 43,582 0.02 7 3:5 2,380
84 554 0.91 46,536 0.03 7 2:3 2,583
91 476 0.78 43,316 0.02 7 5:7 2,380
98 6,659 10.91 652,582 0.37 7 5:7 33,292
105 4,425 7.25 464,625 0.26 7 7:9 24,094
112 2,197 3.60 246,064 0.14 7 6:7 13,181
119 524 0.86 62,356 0.03 7 6:7 3,143
126 383 0.63 48,258 0.03 7 Firm 2,296
504 609 1.00 306,936 0.17 26 Firm 15,834
1,505 68 0.11 102,340 0.06 79 Firm 5,372
2,002 80 0.13 160,160 0.09 105 Firm 8,400
5,005 40 0.07 200,200 0.11 261 Firm 10,440
10,003 24 0.04 240,072 0.13 522 Firm 12,528
20,006 7 0.01 140,042 0.08 1,045 Firm 7,315
50,001 5 0.01 250,005 0.14 2,611 Firm 13,055
75,600 1 0.00 75,600 0.04 3,948 Firm 3,948
100,002 7 0.01 700,014 0.39 5,222 Firm 36,554
200,004 1 0.00 200,004 0.11 10,444 Firm 10,444
535,066 1 0.00 535,066 0.3 27,940 Firm 27,940
1,058,820 1 0.00 1,058,820 0.59 55,290 Firm 55,290
1,190,000 1 0.00 1,190,000 0.67 62,140 Firm 62,140
1,764,700 2 0.00 3,529,400 1.97 92,150 Firm 184,300
2,927,400 1 0.00 2,927,400 1.64 152,864 Firm 152,864
4,698,960 1 0.00 4,698,960 2.63 245,352 Firm 245,352
7,634,116 1 0.00 7,634,116 4.27 398,589 Firm 398,589
D) Allocation to QIBs
Category Fis/ Banks MFs FIIs Ics VCs TOTAL
No. of Shares 1,132,561 7,279,335 24,243,056 1,624 157,037 34,436,059
The Board of Directors of TCS Ltd. at its Meeting Held at Mumbai on August 19, 2004, has approved the basis of allocation of shares as above and allotted the shares to various successful applicants.

The Refund Orders have been despatched on Friday, August 20, 2004 to the address of the investors as registered with the depositories. The refund orders have been printed with the Bank Mandate details as registered, If any, with the depositories. The share allocated to the successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. TCS Ltd. is taking steps to get the Equity shares admitted for trading on The National Stock Exchange of India Limited and on The Stock Exchange, Mumbai within seven working days from the date of approval of basis of allocation.

INVESTORS PLEASE NOTE

This details of the allocation made would also be hosted on the website of registrars to the Issue, Karvy Computershare Private Limited at www.karvy.com or http://kcpl.karvy.com/karisma

All future correspondence in this regard may kindly be addressed to the Registrars to the Issue quoting full name of the First/Sole applicants, 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 :

Karvy Computers Private Limited
Unit: TCS Ltd.,Karvy House,
46, Avenue 4, Street No.1, Banjara Hills,
Hyderabad - 500034
Email:  tcsipo@karvy.com  Website:   www.karvy.com
HELPLINE NUMBERS

Hyderabad: 040-23312454, Ahmedabad: 079-26420422 / 26400527 / 26400528, Bngalore: 080-26621184 / 26621192, Mumbai: 022-56381746 / 56381747 / 56381748, Kolkata: 033-24644891 / 24647231 / 24634788, New Delhi: 011-23324401 (5 Lines), Chennai: 044-28151034 / 3445 / 3658.

For Tata consultancy Services Ltd.

Sd/-

S H Rajadhyaksha
Company Secretary

Place: Mumbai

Date: August 21, 2004

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTUS OF TCS LTD.
TATA CONSULTANCY SERVICES LIMITED Registered Office: Bombay House, 24 Homi Mody Street, Fort, Mumbai 400 001.
Corporate Office: 11th Floor, Air India Building, Nariman Point, Mumbai 400 021, India.
Fax: (91 22) 5668 9661,  Email: investor.relation@tcs.com
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