Basis of Allotment
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(THIS IS ONLY AN ADVERTISEMENT FOR INFORMATION PURPOSES AND NOT A PROSPECTUS ANNOUNCEMENT, NOT FOR DISTRIBUTION OUTSIDE INDIA.)

KWALITY PHARMACEUTICALS LIMITED

CIN: U24232PB1983PLC005426

Our Company was incorporated as 'Kwalliy Pharmaceuticals Private Limited' a private limited company under the Companies Act, 1956 pursuant to Certificate of Incorporation dated May 04, 1983 Issued by the Registrar of Company, Punjab, Himachal Pradesh and Chandigarh. Thereafter, our Company was converted Into a public limited company under the Companies Act, 2013 and the name of our Company was changed to its present name 'Kwality Pharmaceuticals Limited' pursuant to fresh certificate of Incorporation consequent upon change of name on conversion to public limited company dated December 28,2015 Issued by the Registrar of Companies, Chandigarh. For further details of our Company, please refer to the chapters titled 'General Information' and 'History and Certain Corporate Matters' on page numbers 42 and 120, respectively, of the Prospectus

Registered Office: Village Nagkalan. Manjitha Road. Amritsar, Punjab -143 601. India. Tel: +91- 0183-2774321-25; Fax: +91-0183-2774477;
Email: cs@kwalitypharrna.com; Website: www.kwalitypharma.com ; Company Secretary and Compliance Officer: Ms. Pallavi Agarwal
PROMOTERS OF THE COMPANY - MR. RAMESH ARORA. MR. AJAY ARORA

BASIS OF ALLOTMENT

PUBLIC OFFER OF 13,80,000 EQUITY SHARES OF FACE VALUE OF RS 10.00 EACH OF KWALITY PHARMACEUTICALS LIMJTED ("THE COMPANY" OR "KPL") FOR CASH AT A PRICE OF RS 45.00 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 35.00 PER EQUITY SHARE) ("OFFER PRICE") AGGREGATING TO RS 621.00 LAKHS ("THE OFFER") CONSISTING OF A FRESH ISSUE OF 1,80,000 EQUITY SHARES AGGREGATING TO RS 81.00 LAKHS (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 12,00,000 EQUITY SHARES BY SELLING SHAREHOLDER AGGREGATING TO RS 540.00 LAKHS ("OFFER FOR SALE"), OF WHICH. 72,000 EQUITY SHARES AGGREGATING TO RS 32.40 LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKER ("MARKET MAKER RESERVATION PORTION"). THE OFFER LESS THE MARKET MAKER RESERVATION PORTION I.E. OFFER OF 13,08,000 EQUITY SHARES OF FACE VALUE OF RS 10.00 EACH AT AN OFFER PRICE OF RS 45.00 PER EQUITY SHARE AGGREGATING TO RS 588.60 LAKHS IS HEREINAFTER REFERRED TO AS THE "NET OFFER". THE OFFER AND THE NET OFFER WILL CONSTITUTE 26.60% AND 25.21%. RESPECTIVELY OF THE POST OFFER PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.

THE FACE VALUE OF THE EQUITY SHARES IS RS 10 EACH AND THE OFFER PRICE OF RS  45.00 IS 4.5 TIMES OF THE FACE VALUE
THE ISSUE OPENED ON THURSDAY, JUNE 30, 2016 AND CLOSED ON FRIDAY, JULY 08, 2016

The Equity Shares of the Company are proposed to be lisled on the SME Platform of BSE Limited (BSE). In terms of the Chapiter XB of the SEBI (ICDR) Regulations, as amended, we are not required to obtain an in-principal listing approval for the shares being offered in this Offer. However, our Company has received an approval letter dated June 17, 2016 from BSE, for using its name in this offer document for listing of our shares an the SME Platform of BSE. For the purpose of this Offer, the designated stock Exchange will be the BSE.

THIS OFFER IS BEING MADE IN TERMS OF CHAPTER XB OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009 (THE "SEBI (ICDR) REGULATIONS"), AS AMENDED THIS OFFER IS A FIXED PRICE OFFER AND ALLOCATION IN THE NET OFFER TO THE PUBLIC WILL BE MADE IN TERMS OF REGULATION 43(4) OF THE SEBI (ICDR) REGULATIONS, AS AMENDED. FOR FURTHER DETAILS, PLEASE REFER TO SECTION TITLED "OFFER PROCEDURE" ON PAGE 259 OF THE PROSPECTUS.

SUBSCRIPTION DETAILS

The offer has received 249 applications for 13,80,000 Equity Shares resulting in 1.35 times subscription. The details of the applications received in the Offer (before and after technical rejections & withdrawal) are as follows:

Detail of the Applications Received (Betare Technical Rejection):

No. of Shares Applied for (Category Wise) No. of
Applications Received 		% to
Total		 Total No. of
Shares Applied in
Each Category		 % to
Total		 Subscription
Times
Retail Individual Applicant 174 69.88 5,22,000 28.02 0.80
Non Retail Applicant 74 29.72 12,69,000 68.12 1.94
Market Maker 1 0.40 72,000 3.86 1.00
Total 249 100.00 18,63,000 100.00 1.35

The details of applications rejected by the Registrar on technical grounds (including withdrawal) are detailed below:

No. of Shares Applied for  (Category Wise) No. of Applications No. of  Equity Share
Retail Individual Applicant 8 24,000
Non Retail Applicant NIL NIL
Market Maker NIL NIL
Total 8 24,000

After eliminating technically rejected applications, the following tables give us category wise net valid applications:

No. of Shares Applied for (Category Wise) No. of
Applications Received 		% to
Total		 Reserved Portion
(As per Prospectus)		 *No. ol Shares Allocated
(after spill over)		 Total No. of Shares
Applied in Each Category		 % to
Total		 * Subscription
Times
Retail Individual Applicant 166 68.88 6,54,000 4,98,000 4,98,000 27.08 0.76
Non Retail Applicant 74 30.71 6,54,000 8,10,000 12,69,000 69.00 1.57
Market Maker 1 0.41 72,000 72,000 72,000 3.92 1.00
Total 241 100.00 13,80,000 13,80,000 18,39,000 100.00 1.33

*In the event of oversubscription, the allotment will be made on a proportionate basis in marketable lots. There was under-suhscripiion of 1,56,000 Equity Shares in Retail Category & over subscription 6,15,000 Equity Shares in Non - Retail Category, before spill over. The unsubscribed portion of Retail Category i.e. 1,56,000 Equity Shane has been added to the Non-Retail Category. The Basis ot Allotment was finalised in consultation with the Designated Stock Exchange - BSE Ltd on July 13,2016.
A. Allocation To Marker Maker (After Technical Rejections & Withdrawals): The Basis of Allotment to the Market Maker; at the offer Price of Rs. 45 per Equity Share, was finalised in consultation with BSE. The category was subscribed by 1.00 times. The total number of shares allotted in this category is 72,000 Equity Shares.
The category-wise details of the Basis of Allolment are as under:

No. of  Shares
Applied for
(Category Wise)		 No. of
Applications received		 % to
Total		 Total No. of
Shares Applied in
Each Category		 % to
Tolal		 Allocation per
Applicant		 Ratio of Allottees
to the Applicant		 Total No of
Shares Allotted
72,000 1 100.00 72,000 100 00 72,000 1:1 72,000
Total 1 100.00 72,000 100.00 72,000 72,000

B. Allocation to Retail Individual Investors (After Technical Rejections & Withdrawals): TheBasis of Allotment to the Retail Individual Investors, at the Offer Price of Rs.45 per Equity Shane, was finalised in consultation with USE. The catepory was subscribed by 0.76 times i e. for 498,000 shares the total number of shares allotted in this category is 4,98,000 Equity Shares to 166 successlul 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
Shares Applied in
Each Category		 % to Total Allocation per Applicanl Ratio of Allottees Total No. of Shares
to the Applicant Allotted
3,000 166 100.00 4,98,000 100.00 3,000 1:1 4,98,000
Total 166 100.00 4,98,000 100.00 3,000 4,98,000

C. Allocation to Non - Retails Category (After Technical Rejections & Withdrawals): The Basis of Allotment to the Non - Retail Investors, at the Offer Price of Rs. 45 per Equity Share, was finalised in consultation with BSE. The category was subscribed by 1.57 times i e. for 12,69,000 shares the total number of shares allotted in this category is 8,l0,000 Equity Shares to 74 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
Shares Applied in
Each Category		 % to
Total		 Allocation
per
Applicant		 Ratio of Allottees
to the Applicant		 Total No.
of Shares Allotted
6,000 15 20.27 90,000 7.09 3.000 1:1 45,000
9,000 16 21.62 1,44,000 11.35 6,000 1:1 96,000
12,000 8 10.81 96,000 7.57 9,000 1:1 72,000
18,000 28 37.84 5,04,000 39 72 9,000 1:1 2,52,000
3,000 23:28 69,000
21,000 1 1.35 21,000 1.65 12,000 1:1 12,000
36,000 2 2.70 72,000 5.67 24,000 1:1 48,000
54,000 1 1.35 54,000 4.25 33,000 1:1 33,000
72,000 1 1.35 72,000 5.67 45,000 1:1 45,000
1,05,000 1 1.35 1,05,000 8.27 66,000 1:1 66,000
1,11,000 1 1.35 1,11,000 8.75 72,000 1:1 72,000
Total 74 100.00 12,69,000 100.00 8,10,000

The Board of Directors of the Company at its meeting held on july 13,2016 has taken on record the basis of allotment of Equity Share, as approved by the designated Stock Exchange viz. BSE and has authorized the corporate action for the allotment of the Equity Shares to various successful applicants.
The CAN and allotment advice and/ or notices have been dispatched to the address of the investors as registered with the depositories. Further, the instructions to Setf Certified Syndicate Banks have been processed on July 14,2016 for unblocking of funds. The Equity Shares allotted to successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. Iin 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 SME Platform of BSE Limited within 6 working days from the Closure of the Issue. The trading Is proposed to be commenced an or before July 18, 2016 subject to receipt of listing and trading approvals from BSE.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated June 20, 2010 ("Prospectus").

INVESTORS PLEASE NOTE

The details of the allotment made has been hosted on the website of Ihe Registrar to the Offer, Big Shane Services Private Limited at Website: www.bigshareonline.com All future correspondence in this regard rnay kindly be addressed to the Registrar to the Offer 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 given below:

BIG SHARE SERVICES PRIVATE LIMITED
E/2, Ansa Industrial Estate, Sakivihar Road. Sakinaka, Andheri (East), Mumbai - 400 072.
Tel: +91 - 022 40430200 Fax: +91 - 022 28475207: Email: ipo@bigshareonline.com Website: www.bigshareonline.com
Contact Person: Mr. Ashok Shetty; SEBI Registration No.: INR000001385

Place: Amritsar, Punjab
Date: July 14,2016		 For Kwality Pharmaceuticals limited
On behalf of the Board of Directors
sd/-
Managing Director

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SNARES ON LISTING OR THE BUSINESS PROSPECTS OF THE KWALITY PHARMACEUTICALS LIMITED.
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