Basis of Allotment

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(This 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 Not for publication or distribution, directly or indirectly outside India.)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.;
Tel: (0891) 2549675-79/2762581-84; Fax: (0891) 2720135/2762586 Contact Person: Ms. M. Srividya, Company Secretary and Compliance Officer,
E-mail: srividya.m@steelcitynettrade.com; Website: www.steelcitynettrade.com
Corporate Identification Number: U67120AP1995PLC019521

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
THE FACE VALUE OF THE EQUITY SHARES IS RS 10/- EACH AND
THE ISSUE PRICE OF RS 55/- IS 5.5 TIMES OF THE FACE VALUE OF THE EQUITY SHARES.

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").

SUBSCRIPTION DETAILS

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).
The details of application received (Before Technical but after application not banked and invalid duplicate application)

CATEGORY NUMBEROF
APPLICATIONS
NUMBER OF
EQUITY SHARES
SUBSCRIPTION
Market Makers 1 2,46,000 1.00
Other than Retail Individual Investor's 321 72,78,000 3.12
Retail Individual Investor's 7,590 1,51,80,000 6.51
TOTAL 7,912 2,27,04,000 4.63

Detail of the Applications Received (AfterTechnical Rejection):

CATEGORY NUMBEROF
APPLICATIONS
% TO
TOTAL
ISSUE SIZE
(AS PER PROSPECTUS)
NUMBER OF
EQUITY SHARES
APPLIED (VALID)
AMOUNT
(RS)
SUBSCRIPTION
(TIMES)
Market Makers 1 0.01 2,46,000 2,46,000 1,35,30,000 1.00
Otherthan Retail Individual Investor's 316 4.06 23,31,000 72,58,000 39,91,90,000 3.12
Retail Individual Investor's 7462 95.92 23,31,000 1,49,24,000 82,08,20,000 6.51
TOTAL 7779 100.00 49,08,000 2,24,28,000 1,23,35,40,000 4.63

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:

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 Number of successful applicants (after rounding) Total No. of Equity Shares allotted Surplus/ (Deficit)
2,000 7462 100.00 1,49,24,000 100.00 31,38,000 420.53 2,000 1569:7462 1569 31,38,000 0

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:

No. of Shares Applied for (Category wise) Number of Applications received % to total Total No. of Shares applied in each category % of total Proportionate Shares
Available
Allocation per Applicant
(Before Rounding Off)
Allocation per Applicant
(After Rounding Off)
Ratio of Allottees to Applicants Number of successful applicants
(after rounding)
Total No. of Shares allocated/ allotted No. of
Shares Surplus/ (Deficit)
4000 114 36.08 456000 6.28 95749 839.90 2000 8:19 48 96000 251
6000 29 9.18 174000 2.40 36536 1259.85 2000 18:29 18 36000 -536
8000 21 6.65 168000 2.31 35276 1679.80 2000 6:7 18 36000 724
10000 43 13.61 430000 5.92 90289 2099.75 2000 1:1 43 86000 -4289
12000 6 1.90 72000 0.99 15118 2519.70 2000 1:1 6 12000 -3118
14000 5 1.58 70000 0.96 14698 2939.65 4000 4:5 4 16000 1302
16000 5 1.58 80000 1.10 16798 3359.60 4000 1:1 5 20000 3202
18000 20 6.33 360000 4.96 75591 3779.55 4000 19:20 19 76000 409
20000 12 3.80 240000 3.31 50394 4199.50 4000 1:1 12 48000 -2394
22000 3 0.95 66000 0.91 13858 4619.45 4000 1:1 3 12000 -1858
24000 3 0.95 72000 0.99 15118 5039.40 6000 1:1 3 18000 2882
26000 1 0.32 26000 0.36 5459 5459.36 6000 1:1 1 6000 541
28000 3 0.95 84000 1.16 17638 5879.31 6000 1:1 3 18000 362
30000 9 2.85 270000 3.72 56693 6299.26 6000 1:1 9 54000 -2693
34000 1 0.32 34000 0.47 7139 7139.16 8000 1:1 1 8000 861
36000 3 0.95 108000 1.49 22677 7559.11 8000 1:1 3 24000 1323
40000 7 2.22 280000 3.86 58793 8399.01 8000 1:1 7 56000 -2793
42000 1 0.32 42000 0.58 8819 8818.96 8000 1:1 1 8000 -819
44000 3 0.95 132000 1.82 27717 9238.91 10000 1:1 3 30000 2283
46000 2 0.63 92000 1.27 19318 9658.86 10000 1:1 2 20000 682
58000 1 0.32 58000 0.80 12179 12178.56 12000 1:1 1 12000 -179
60000 3 0.95 180000 2.48 37796 12598.51 12000 1:1 3 36000 -1796
62000 1 0.32 62000 0.85 13018 13018.46 14000 1:1 1 14000 982
80000 1 0.32 80000 1.10 16798 16798.02 16000 1:1 1 16000 -798
82000 2 0.63 164000 2.26 34436 17217.97 18000 1:1 2 36000 1564
90000 6 1.90 540000 7.44 113387 18897.77 18000 1:1 6 108000 -5387
90000 2000 3:6 6000 6000
100000 3 0.95 300000 4.13 62993 20997.52 20000 1:1 3 60000 -2993
100000 2000 2:3 4000 4000
178000 1 0.32 178000 2.45 37376 37375.59 38000 1:1 1 38000 624
180000 2 0.63 360000 4.96 75591 37795.54 38000 1:1 2 76000 409
320000 1 0.32 320000 4.41 67192 67192.06 68000 1:1 1 68000 808
374000 1 0.32 374000 5.15 78531 78530.72 78000 1:1 1 78000 -531
396000 1 0.32 396000 5.46 83150 83150.18 84000 1:1 1 84000 850
450000 1 0.32 450000 6.20 94489 94488.84 94000 1:1 1 94000 -489
540000 1 0.32 540000 7.44 113386 113386.61 114000 1:1 1 114000 614
316 100 7258000 100 1524000 - - - 234 1524000 0

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
The details of the allotment made would also be hosted on the website of the Registrar to the Issue at www.bigshareonline.com. All future correspondence in this regard may kindly be addressed to the Registrar quoting full name of the First/ Sole applicant, serial number of the Application Form, number of shares applied for and Bank Branch where the application had been lodged and payment details at the address of the Registrar given below:

BIGSHARE SERVICES PRIVATE LIMITED
E/2, Ansa Industrial Estate, Sakivihar Road, Sakinaka, Andheri (East), Mumbai 400 072. Tel.: +91-22-4043 0200; Fax: +91-22-2847 5207; Email: ipo@bigshareonline.com;
Website: www.bigshareonline.com; Contact Person: Mr. Babu Raphael; SEBI Registration No: INR000001385

Date: February 15,2017
Place: Visakhapatnam
For STEEL CITY SECURITIES LIMITED
Sd/-
M. Srividya
Company Secretary and Compliance Officer

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.

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