|Basis of Allotment|
is only an advertisement for Information purpose. This is not a Prospectus announcement
and does not constitute an invitation or offer to acquire, purchase or subscribe for
securities. Not for publication or distribution, directly or indirectly outside India.)
STEEL CITY SECURITIES LIMITED
Our Companywas incorporated as a public limited company on February 22,1995 underthe provisions of the Companies Act, 1956 as Steel City Securities Limited with Registration No. 01-19521 and obtained certificate of commencement of business on April 20,1995 from the Registrar of Companies, Andhra Pradesh at Hyderabad. For details of changes in the name and the registered office of our Company, see the chapter titled "History and Certain Corporate Matters" beginning on page 119 of the Prospectus.
Registered Office & Corporate Office: 49-52-5/4, Sri Kanya
Towers, Shantipuram, Visakhapatnam - 530016, Andhra Pradesh.;
BASIS OF ALLOTMENT
PUBLIC OFFER OF 49,08,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ("EQUITY SHARES") OF STEEL CITY SECURITIES LIMITED (THE "COMPANY' OR THE "ISSUER") FOR CASH AT A PRICE OF RS 55/-PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 45/-PER EQUITY SHARE) AGGREGATING UPTO RS 2699.40 LACS CONSISTING OF A FRESH ISSUE OF 27,26,183 EQUITY SHARES AGGREGATING UPTO RS 1499.40 LACS (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 21,81,817 EQUITY SHARES OF THE COMPANY COMPRISING OF 8,94,809 EQUITY SHARES BY MR. G. SREE RAMA MURTHY, 5,96,540 EQUITY SHARES BY MR. K. SATYANARAYANA AND 6,90,468 EQUITY SHARES BY MR. G. RAJAGOPAL REDDY (COLLECTIVELYTHE "SELLING SHAREHOLDERS") ("OFFER FOR SALE") AGGREGATING TO RS 1200 LACS (THE "OFFER") (THE "OFFER FOR SALE" AND THE "FRESH ISSUE" ARE TOGETHER REFERRED TO AS, THE "OFFER"). OUT OF THE OFFER, 2,46,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH FOR A CASH PRICE OF RS 55 PER EQUITY SHARE, AGGREGATING TO RS 135.30 LACS ARE RESERVED FOR SUBSCRIPTION BY MARKET MAKER ("MARKET MAKER RESERVATION PORTION"). THE OFFER LESS THE MARKET MAKER RESERVATION PORTION I.E. OFFER OF 46,62,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH AT AN OFFER PRICE OF RS 55 PER EQUITY SHARE AGGREGATING TO RS 2564.10 LACS IS HEREINAFTER REFERRED TO AS THE "NET OFFER". THE OFFER AND THE NET OFFER CONSTITUTE 32.49% AND 30.86%, RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.
OFFER PRICE: RS 55/- PER EQUITY SHARE
ISSUE OPENED ON FEBRUARY 06, 2017 AND CLOSED ON FEBRUARY 09, 2017.
The Equity Shares offered through the Prospectus are proposed to be listed on the EMERGE Platform of National Stock Exchange of India Limited ("NSE EMERGE") in terms of the Chapter XB of the SEBI (ICDR) Regulations, 2009 as amended from time to time. The Company has received an in-principle approval from National Stock Exchange of India Limited vide their letter dated November 03,2016 for using its name in the Offer Documentfbr listing of our Shares on EMERGE Platform of National Stock Exchange of India Limited.The Designated Stock Exchange is the National Stock Exchange of India Limited ("NSE").
The Issue has received 8,204 applications for 2,39,28,000 Equity shares
(Before Technical Rejections) (including Market Maker Application of 2,46,000 Equity
Shares) resulting 4.88 times subscription. Before considering, Technical Rejection
cases, the issue was subscribed 4.63 times (including the Market Maker Portion).
Detail of the Applications Received (AfterTechnical Rejection):
ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - National Stock Exchange of India Limited on February 14,2017.
A. Allocation to Market Maker(AfterTechnical Rejections): The Basis ofAllotment to the Market Maker, at the issue price of Rs 55/-per Equity Share,was finalized in consultation with National Stock Exchange of India Limited.The category was subscribed by 1.00 times.The total number of shares allotted in this category is 2,46,000 Equity Shares in full out of reserved portion of 2,46,000 Equity Shares.
B. Allocation to Retail Individual Investors (After Technical Rejections): The Basis ofAllotment to the Retail Individual Investors, at the issue price of Rs 55/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscri bed by 6.51 times. Total number of shares allotted in this category is 31,38,000 Equity Shares. The category wise basis of allotment is as under:
Note: The equity shares available for allotment have been arrived in the equal proportion of the respective over subscription ratio of Retail Individual and Non Retail Individual Investors category. In view of the explanation provided under sub-regulation (4) of regulations 43 of the SEBI (ICDR) Regulation, 2009, if the Retail individual investor Category is entitled to more than 50% on proportionate basis, the Retail Individual Investors shall be allocated that higher percentage. Accordingly in view of application in Retail Category being 67.28% and in Non-Retail Category being 32.72%,allotment size has been derived. Further, owing to rounding off, an additional share has been proportioned to be allotted in retail investors.
C. Allocation to Other than Retail Individual Investor (After Technical Rejection): The Basis ofAllotment to other than Retail Individual Investors, at the issue price of Rs 55/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscri bed by 3.12 times. Total number of shares allotted in this category is 15,24,000 Equity Shares. The category wise basis of allotment is as under:
The Board of Directors of the Company at its meeting held on February 15,2017 has taken on record the Basis of Allocation of Equity Shares approved by the Designated Stock Exchange viz. National Stock Exchange of India Limited and authorized corporate action for allotment of shares in dematerialized form to various successful applicants.
The CAN and allotment advice and/or notices shall be dispatched to the address of the Applicants as registered with the depositories / as filled in the application form on or before February 20,2017. Further, the instructions to SCSBs have be issued on February 15,2017 for unblocking of funds. 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. In case the same is not received within prescribed time, Investors may contact the registrar to the Issue at the address given below. The Company is taking steps to get the Equity Shares admitted for trading on the EMERGE Platform of National Stock Exchange of India Limited within six working days from the date of the closure of the Issue. The trading is proposed to commence on or before February 17,2017 subject to receipt of listing and trading approval from National Stock Exchange of India Limited.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.
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 STEEL CITY SECURITIES LIMITED.