Basis of Allotment

(This is only an advertisement for Information purposes and not a Prospectus announcement.)
KRANTI INDUSTRIES LIMITED

Our Company was incorporated on December 5, 1995, as "Kranti Precision Tools Private Limited" under the provisions of the Companies Act, 1956 with the Registrar of Companies, Bombay, Maharashtra bearing Registration Number 095016. We subsequently changed the name of our Company from "Kranti Precision Tools Private Limited" to "Kranti Industries Private Limited" pursuant to shareholders resolutions passed at the Extra Ordinary General Meeting held on February 8, 2002. A fresh Certificate of Incorporation consequent upon name change was granted to our Company on March 11, 2002 by the Registrar of Companies, Pune, Maharashtra. Subsequently, our Company was converted into public limited company pursuant to shareholders resolution passed at the extra ordinary general meeting held on July 31, 2015 and the name of our Company was changed to "Kranti Industries Limited" vide a fresh Certificate of Incorporation dated August 17, 2015 issued by the Registrar of Companies, Pune. The Corporate Identification number of our Company is U29299PN1995PLC095016. For details of incorporation, change of name and registered office of our Company, please refer to the section titled "History and Certain Corporate Matters" on page no. 118 of the Prospectus.

Registered Office: Gat No.267/B/1, Post Pirangut, Tal. Mulshi, Pune- 412 115, Maharashtra, India. Tel: +91-20-6675 5676
Contact Person: Mr. Bhavesh Subhash Selarka, Company Secretary and Compliance Officer
Email: investor@krantiindustries.com Website: www.krantiindustries.com
PROMOTERS OF OUR COMPANY: MR. SACHIN SUBHASH VORA, MR. SUMIT SUBHASH VORA AND MRS. INDUBALA SUBHASH VORA
BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 23,19,000 EQUITY SHARES OF FACE VALUE OF RS.10 EACH, AT AN OFFER PRICE OF RS. 37.00 PER EQUITY SHARE FOR CASH, AGGREGATING RS. 858.03 LAKHS ("PUBLIC OFFER") COMPRISING OF A FRESH ISSUE OF 17,52,000 EQUITY SHARES AGGREGATING UP TO RS. 648.24 LAKHS ("FRESH ISSUE") AND AN OFFER FOR SALE OF 5,67,000 EQUITY SHARES BY MRS. BASANTI VORA (THE "PROMOTER GROUP SELLING SHAREHOLDER") AGGREGATING TO RS. 209.79LAKHS ("OFFER FOR SALE") OUT OF WHICH 1,17,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH, AT AN OFFER PRICE OF RS. 37.00 PER EQUITY SHARE FOR CASH, AGGREGATING TO RS. 43.29 LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY THE MARKET MAKER TO THE OFFER (THE "MARKET MAKER RESERVATION PORTION"). THE OFFER LESS MARKET MAKER RESERVATION PORTION I.E. OFFER OF 22,02,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH, AT AN OFFER PRICE OF 337.00 PER EQUITY SHARE FOR CASH, AGGREGATING TO RS. 814.74 LAKHS IS HEREINAFTER REFERRED TO AS THE "NET OFFER". THE PUBLIC OFFER AND NET OFFER WILL CONSTITUTE 26.35 % AND 25.02 % RESPECTIVELY OF THE POST- OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

IN TERMS OF RULE 19(2)(B)(I) OF THE SECURITIES CONTRACTS (REGULATION) RULES, 1957, AS AMENDED (THE "SCRR") THE OFFER IS BEING MADE FOR AT LEAST 25% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY. THIS OFFER IS BEING MADE IN TERMS OF CHAPTER IX OF THE SEBI (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2018, AS AMENDED FROM TIME TO TIME ("SEBI (ICDR) REGULATIONS, 2018"). FOR FURTHER DETAILS, PLEASE REFER SECTION TITLED "OFFERING INFORMATION "BEGINNING ON PAGE NO. 204 OF THE PROSPECTUS.

FIXED PRICE ISSUE AT 337 PER EQUITY SHARE
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH AND THE OFFER PRICE IS 3.7 TIMES OF THE FACE VALUE.
OFFER OPENED ON: THURSDAY, FEBRUARY 14, 2019
OFFER CLOSED ON: WEDNESDAY, FEBRUARY 20, 2019

The Equity Shares offered through the Prospectus are proposed to be listed on the SME Platform of BSE Limited ("BSE SME"). In terms of Chapter IX of SEBI (ICDR) Regulations, 2018 as amended, we have received an in-principle approval letter dated February 04, 2019 from BSE Limited for using its name in the Offer Document for listing our shares on the SME Platform of BSE. For purposes of this Offer, the Designated Stock Exchange will be the BSE Limited ("BSE").

All potential Investors shall participate in the Offer only through an Application Supported by Blocked Amount ("ASBA") process providing details about the bank account which will be blocked by the Self Certified Syndicate Banks ("SCSBs") for the same. In terms of SEBI Circular no. SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated November 01, 2018, it should be noted that SEBI has introduced the use of Unified Payment Interface ("UPI") as a payment mechanism with Application Supported by Block Amount ("ASBA") in public issues by retail individual investors through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants). For further details, please refer to section titled "Offering Information" beginning on page no. 204 of the Prospectus. A copy of Prospectus has been delivered for registration to the Registrar of Companies as required under Section 32 and 26 of the Companies Act, 2013.

SUBSCRIPTION DETAILS

The issue has received 545 applications for 28,41,000 equity shares (before rejections, before bids not banked but after Invalid Multiple/Duplicate bids) resulting in 1.2251 times subscription (including reserved portion of Market maker).

The details of applications received in the offer (before technical rejections) are as follows:

CATEGORY NUMBER OF APPLICATIONS NUMBER OF EQUITY SHARES SUBSCRIPTION (TIMES)
Market Maker 1 1,17,000 1.0000
Other Investors 54 10,74,000 0.9755
Retail Individual Investors 435 13,05,000 1.1853
Total 490 24,96,000 1.0763

The details of applications rejected by the Registrar on technical grounds and Multiple Rejection are detailed below:

CATEGORY NUMBER OF APPLICATIONS NUMBER OF EQUITY SHARES
Market Maker 0 0
Other Investors 1 9,000
Retail Individual Investors 19 57,000
Total 20 66,000

Detail of the Applications Received (After Technical and Multiple Rejections):

CATEGORY NUMBER OF APPLICATIONS NUMBER OF EQUITY SHARES SUBSCRIPTION (TIMES)
Market Maker 1 117000 1.0000
Other Investors 53 10,65,000 1.0534
Retail Individual Investors 416 12,48,000 1.0479
Total 470 24,30,000  

Allocation: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - BSE Limited on February 25, 2019.

A. Allocation to Market Maker (After Technical Rejections): The Basis of Allotment to the Market Maker, at the offer price of RS. 37/- per Equity Share, was finalized in consultation with BSE Limited. The category was subscribed by 1.00 time. The total number of shares allotted in this category is 1,17,000 Equity Shares.
B. Allocation to Retail Individual Investors (After Technical Rejections): The Basis of Allotment to the Retail Individual Investors, at the offer price of RS. 37/- per Equity Share, was finalised in consultation with BSE Limited. The category was subscribed by 1.0479 times. The total number of shares allotted in this category is 11,91,000 Equity Shares to 397 successful applicants.

The Category-wise details of the Basis of Allotment are as under:

No. Of Shares Applied for (Category wise) No. of Applications received % to total Total No. of Equity Shares applied in this Category % to total Proportionate Shares Available Allocation per Applicant (Before Rounding Off) Allocation per Applicant (After Rounding Off) Ratio of Allottees to the Applicants RATIO-1 Ratio of Allottees to the Applicants RATIO-2 Number of successful applicant (after rounding off) Total no. of Shares Allocated/ allotted Surplus/(Deficit)
3000 416 100 12,48,000 100 11,91,000 2862.98 3000 397 416 397 11,91,000 0
Grand Total 416 100.00 12,48,000 100.00 11,91,000         397 11,91,000 0
 
C. Allocation to Other than Retail Individual Investors (After Technical Rejections & Withdrawal):
The Basis of Allotment to the Non Institutional Investors, at the Offer price of RS. 37/- per Equity Share, was finalized in consultation with BSE Limited. The category was subscribed by 1.0534 times. The total number of shares allotted in this category is 10,11,000 Equity Shares to 53 successful applicants.

The Category-wise details of the Basis of Allotment are as under

SR NO Category No. of Applications Received % of Total Total No. of Equity Shares Applied % to Total No. of Equity Shares Allotted per applicants Ratio Total No. of Equity Shares Allotted
1 6,000 18 33.96 108,000 10.14 3,000 1:1 54,000
  3000 additional share is allocated for Serial no 1 in the ratio of 8:9   3.000 8:9 48.000
2 9,000 9 16.98 81,000 7.61 6,000 1:1 54,000
  3000 additional share is allocated for Serial no 2 in the ratio of 8:9   3,000 8:9 24,000
3 12,000 4 7.55 48,000 4.51 9,000 1:1 36,000
  3000 additional share is allocated for Serial no 3 in the ratio of 3:4   3,000 3:4 9,000
4 15,000 9 16.98 135,000 12.68 12,000 1:1 108,000
  3000 additional share is allocated for Serial no 4 in the ratio of 7:9   3,000 7:9 21,000
5 27,000 6 11.32 162,000 15.21 24,000 1:1 144,000
  3000 additional share is allocated for Serial no 5 in the ratio of 1:2   3,000 1:2 9,000
6 33,000 1 1.89 33,000 3.10 30,000 1:1 30,000
7 42,000 1 1.89 42.000 3.94 39,000 1:1 39,000
8 45,000 1 1.89 45,000 4.23 42,000 1:1 42,000
9 66,000 1 1.89 66,000 6.20 63,000 1:1 63,000
10 75,000 1 1.89 75,000 7.04 72,000 1:1 72,000
11 120,000 1 1.89 120,000 11.27 114,000 1:1 114,000
12 150,000 1 1.89 150,000 14.08 144,000 1:1 144,000
    53 100.00 10,65,000 100.00     10,11,000

The Board of Directors of the Company at its meeting held on February 26, 2019 has taken on record the Basis of Allocation of Equity Shares approved by the Designated Stock Exchange viz. BSE 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 27, 2019. Further, the instructions to SCSBs has been issued on February 26, 2019 for unblocking of funds. The Equity Shares allocated to successful applicants has been credited to their beneficiary accounts on February 27, 2019. In case the same is not received within prescribed time, Investors may contact the registrar to the Offer at the address given below. The Company is taking steps to get the Equity Shares admitted for trading on the SME platform of BSE within six working days from the date of the closure of the Offer.

The trading is proposed to commence on or before February 28, 2019 subject to receipt of listing and trading approvals from BSE Limited.

INVESTORS PLEASE NOTE

The details of the allotment made will be hosted on the website of the Registrar to the Offer at www.linkintime.co.in. 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:

LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai 400 083
Telephone: +91 22 49186200; Facsimile: +91 22 49186195
Email: kranti.ipo@linkintime.co.in; Investor grievance email: kranti.ipo@linkintime.co.in
Contact Person: Mr. Shanti Gopalkrishnan; Website: www.linkintime.co.in
SEBI Registration Number: INR000004058; CIN: U67190MH1999PTC118368
For Kranti Industries Limited
On behalf of the Board of Director
Sd/-
Mr. Sachin Subhash Vora
Place: Pune Chairman and Managing Director
Date: February 26, 2019 DIN:- 02002468

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 Kranti Industries Limited.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated February 04, 2019

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