ANDHRA BANK
(Andhra Bank was originally incorporated on November 20, 1923 under the
Companies Act, 1913 as 'The Andhra Bank Limited" with its registered office at
Machilipatnam, Andhra Pradesh. The registered office of the Bank was subsequently shifted
to Andhra Bank Buildings, Sultan Bazar, Hyderabad 500 195, Andhra Pradesh, India in 1973.
After nationalization of the Bank pursuant to the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980, the name of the Bank was changed to "Andhra
Bank". Head Office: Dr. Pattabhi
Bhavan, 5-9-11, Saifabad, Hyderabad - 500 004, India. Tel: (91 40) 2323 0883, Fax: (91 40)
2323 0883; Contact Person: K. Sethu Prasad; Email:
eco@andhrabank.co.in; Website: www.andhrabank-india.com
BASIS OF ALLOCATION
PUBLIC ISSUE OF UP TO 85,000,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A
PRICE OF RS. 90 PER EQUITY SHARE AGGREGATING RS. 7,650 MILLION (THE "ISSUE")
BYANDHRA BANK ("THE BANK" OR "THE ISSUER").THE ISSUE COMPRISES A NET
ISSUE TO THE PUBLIC OF UP TO 76,500,000 EQUITY SHARES OF RS. 10 EACH (THE "NET
ISSUE") AND A RESERVATION FOR ELIGIBLE EMPLOYEES OF UP TO 8,500,000 EQUITY SHARES OF
RS. 10 EACH, AT THE ISSUE PRICE. THE ISSUE WOULD CONSTITUTE 17.53% OF THE TOTAL POST ISSUE
PAID-UP CAPITAL OF THE BANK.
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 AND THE ISSUE PRICE IS 9 TIMES OF
THE FACE VALUE.
The Issue is being made through the 100% book building process where upto 50% of the
Net Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers
("QIBs") (including 5% of the QIB portion that shall be available for allocation
on a proportionate basis to Mutual Funds). Further, not less than 15% of the Net Issue
shall be available for allocation on a proportionate basis to Non-Institutional Bidders
and not less than 35% of the Net 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. Up to 8,500,000 equity shares shall be allotted on a
proportionate basis to Eligible Employees.
The Issue received 238,905 applications for 908,019,000 equity shares (at a price of
Rs. 90 or cut off) resulting in 10.68 times subscription. The details of the applications
received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders,
Retail Individual Bidders and Employee categories are as under:
| Category |
No. of Applications |
No of Shares |
Subscription |
| Retail Individual Bidders |
228,335 |
81,305,775 |
3.04 |
| Non Institutional Bidders |
2,574 |
63,281,550 |
5.51 |
| Qualified Institutional Buyers |
186 |
757,663,425 |
19.81 |
| Employees |
7,810 |
5,768,250 |
0.68 |
| Total |
238,905 |
908,019,000 |
10.68 |
Final Demand
The final demand at different bid prices is as under:
| Bid Price |
No.of Shares |
% of Total |
Cumulative Total |
Cumulative % to total |
| 82 |
33,166,575 |
3.24 |
1,024,415,775 |
100.00 |
| 83 |
868,425 |
0.08 |
991,249,200 |
96.76 |
| 84 |
2,222,850 |
0.22 |
990,380,775 |
96.68 |
| 85 |
21,322,950 |
2.08 |
988,157,925 |
96.46 |
| 86 |
11,536,950 |
1.13 |
966,834,975 |
94.38 |
| 87 |
4,642,800 |
0.45 |
955,298,025 |
93.25 |
| 88 |
26,502,675 |
2.59 |
950,655,225 |
92.80 |
| 89 |
7,362,750 |
0.72 |
924,152,550 |
90.21 |
| 90 & CutOff |
916,789,800 |
89.49 |
916,789,800 |
89.49 |
|
1,024,415,775 |
|
|
|
The Basis of Allocation was finalized in consultation with the National
Stock Exchange of India Limited ("NSE") on February 2, 2006.
A. Allocation to Employees
The Basis of Allocation to the Employees category, who bid at the cut-off or at the
Issue Price of Rs.90/- per Equity Share, was finalized in consultation with NSE. The
category was subscribed to the extent of 0.68 times. Hence full & firm allotments have
been made against all valid applications. The total number of shares allotted in this
category is 5,768,250 Equity Shares. As specified in the bid- cum application form, the
un-subscribed portion has been allocated equally between the retail and Non-institutional
category.
B. Allocation to Retail Investors
The Basis of Allocation to the Retail Individual Investors, who bid at cut-off or at
the Issue Price of Rs.90/- per Equity Share, was finalized in consultation with NSE. The
category was over subscribed 3.04 times. The total number of shares allotted in this
category is 28,140,875 Equity Shares. The category-wide details of the Basis of Allocation
are as under:
| Category |
No. Applns. |
% to total |
Total No of
Shares applied |
% to total |
No. of Shares allocated |
Ratio |
Total No. of
Shares allocated |
| 75 |
43,345 |
18.98 |
3,250,875 |
4.00 |
75 |
9-26 |
1,125,300 |
| 150 |
48,024 |
21.03 |
7,203,600 |
8.86 |
75 |
9-13 |
2,493,525 |
| 225 |
23,158 |
10.14 |
5,210,550 |
6.41 |
77 |
FIRM |
1,783,166 |
| ADDITIONAL |
1 |
8-27 |
6;862 |
| 300 |
25,270 |
11.07 |
7,581,000 |
9.32 |
104 |
FIRM |
2,628,060 |
| 375 |
5,372 |
2.35 |
2,014,500 |
2.48 |
130 |
FIRM |
698,360 |
| 450 |
9,303 |
4.07 |
4,186,350 |
5.15 |
156 |
FIRM |
1,451,268 |
| 525 |
45,740 |
20.03 |
24,013,500 |
29.53 |
182 |
FIRM |
8,324,680 |
| 600 |
2,252 |
0.99 |
1,351,200 |
1.66 |
208 |
FIRM |
468,416 |
| 675 |
345 |
0.15 |
232,875 |
0.29 |
234 |
FIRM |
80,730 |
| 750 |
1,010 |
0.44 |
757,500 |
0.93 |
260 |
FIRM |
262,600 |
| 825 |
310 |
0.14 |
255,750 |
0.31 |
286 |
FIRM |
88,660 |
| 900 |
768 |
0.34 |
691,200 |
0.85 |
312 |
FIRM |
239,616 |
| 975 |
707 |
0.31 |
689,325 |
0.85 |
337 |
FIRM |
238,259 |
| 1050 |
22,731 |
9.96 |
23,867,550 |
29.36 |
363 |
FIRM |
8,251,353 |
C. Allocation o on Institutional Bidders
The Basis of Allocation to the Non Institutional Bidders, who bid at and above the Issue
Price of Rs.90/- per Equity Share, was finalized in consultation with NSE. The category
was subscribed 5.51 times. The total number of shares allotted in this category is
12,840,875 Equity Shares. The category-wide details of the Basis of Allocation are as
under:
| Category |
No. Applns. |
% to total |
Total No.of
Shares applied |
% to total |
No. of Shares
allocated |
Ratio |
Total No. of
Shares allocated |
| 1125 |
272 |
10.57 |
306,000 |
0.48 |
228 |
FIRM |
62,016 |
| 1200 |
135 |
5.24 |
162,000 |
0.26 |
244 |
FIRM |
32,940 |
| 1275 |
4 |
0.16 |
5,100 |
0.01 |
259 |
FIRM |
1,036 |
| 12000 |
10 |
0.39 |
120,000 |
0.19 |
2,435 |
FIRM |
24,350 |
| 24000 |
1 |
0.04 |
24,000 |
0.04 |
4,870 |
FIRM |
4,870 |
| 50025 |
8 |
0.31 |
400,200 |
0.63 |
10,151 |
FIRM |
81,208 |
| 100050 |
3 |
0.12 |
300,150 |
0.47 |
20,302 |
FIRM |
60,906 |
| 555000 |
1 |
0.04 |
555,000 |
0.88 |
112,619 |
FIRM |
112,619 |
| 2222175 |
1 |
0.04 |
2,222,175 |
3.51 |
450,919 |
FIRM |
450,919 |
| 2775000 |
1 |
0.04 |
2,775,000 |
4.39 |
563,097 |
FIRM |
563,097 |
| 4500000 |
1 |
0.04 |
4,500,000 |
7.11 |
913,001 |
FIRM |
913,001 |
D. Allocation to QlBs
Allocation to QIBs was done on a proportionate basis in consultation with NSE. As per the
SERI guidelines, Mutual funds were initially allotted 5% (1,912,500 Equity Shares) of the
quantum of shares available (38,250,000 Equity Shares) and other QIBs and unsatisfied
demands of Mutual Funds were allotted the remaining available 36,337,500 Equity Shares on
proportionate basis. The sectoral cap and other limits applicable to the holding of shares
in a company have been taken into account while allotting shares. Mutual Funds were
allotted 28.73% of the shares applied and other QIB applicants were allotted 71.27% of the
shares applied.
| Category |
Fls/Banks |
MFs |
Flls |
Insurance Companies |
Provident Funds |
Total |
| No.of Shares |
7,830,875 |
10,987,838 |
15,583,663 |
3,735,979 |
111,645 |
38,250,000 |
The Committee of Directors of the Bank at a meeting held at Hyderabad on February 3,
2006 approved the basis of allocation' of shares of the Issue and allotted the shares to
various successful applicants.
The Refund Orders/ allotment advice has been dispatched to the addresses of the investors
as registered with the depositories. In case the same is not received within ten days,
investors may contact at the address given below. The Refund Orders have been over-printed
with the Bank Mandate details as registered, if any, with the depositories. The 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 and National Stock
Exchange of India Limited, Bombay Stock Exchange Limited and Hyderabad Stock Exchange
Limited within seven working days from the date of approval of the basis of allocation.
INVESTORS PLEASE NOTE
These details of the allocation made will also be available on the website of the
Registrar to the Issue, MCS Limited at http://www.mcsind.com.
All future correspondence in this regard may kindly be addressed to the Registrar to the
Issue quoting the 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:
MCS LIMITED (Unit: Andhra Bank Offer), Sri Padmavati Bhavan, Plot No. 93,
Road No. 16, MIDG Area, Andheri (East), Mumbai 400093 Tel: (91 22) 2820 1785; Fax
(91 22) 28201783, E-mail: abipo@mcsind.com;
website:http://www.mcsind.com
Place : Hyderabad
Date : February 4, 2006 |
For Andhra Bank
Sd/
Shrl K. Ramakrlshnan
Chairman & Managing Director |
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 PROSPECTS OF ANDHRA BANK |