|Basis of Allotment|
is only an advertisement for information purposes and not a Prospectus announcement.)
RIDDHI STEEL AND TUBE LIMITED
Our Company was originally Incorporated on September 07,2001, as Riddhi Steel and Tube Private Limited under the provisions of the Companies Act, 1956 with the Registrar of Companies, Gujarat. Dadra and Nagar Haveli. Our Company was converted into a public limited company and accordingly the name of our Company was changed to Riddhi Steel and Tube Limited pursuant to a special resolution passed by our Shareholders at the EGM held on January 08, 2016. A fresh certificate of Incorporation consequent upon conversion to public limited company was issued on February 01,2016 by Registrar of Companies, Ahmedabad, Gujarat. For further details, please see the section titled "History and other Certain Corporate Matter" beginning on page 88 of the Prospectus-
Registered Office: 83/84, Village - Kamod, Piplaj Pirana Road,
Post - Aslali, Ahmedabad - 382427, Gujarat India.
Promoters of Our Company: Mr Rajesh Kumar R. Mittal, Ms. Preeti R. Mittal, Mr. Rajat R. Mittal and Ms. Riddhli R. Mittal
BASIS OF ALLOTMENT
PUBLIC ISSUE OF EQUITY SHARES OF R5-10 EACH ("EQUITY SHARES'') OF RIDDHl STEEL AND TUBE LIMITED ("RSTL" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS.38 PER SHARE (THE ''ISSUE PRICE"), AGGREGATING TO RS. 899 20 LACS ("THE ISSUE") OF WHICH, 1,26,000 EQUITY SHARES OF RS. 10 EACH WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKER TO THE ISSUE (THE "MARKET MAKER RESERVATION PORTION"). THE ISSUE LESS THE MARKET MAKER RESERVATION PORTION i.e, ISSUE OF 22,14,000 EQUITY SHARES OF RS. 10 EACH IS HEREINAFTER REFERRED TO AS THE "NET ISSUE".THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 28.22% AND 26.71%, RESPECTIVELY OF THE POST ISSUE PAIDUP EQUITY SHARE CAPITAL OF THE COMPANY
THE FACE VALUE OF THE EQUITY SHARES IS Rs. 10/- EACH AND
The Equity Shares of the Company are proposed to be listed on the SME Platform of BSE Limited ('BSE'"}. In terms of the Chapter XB of the SEBI (ICDR) Regulations, 2009, as amended from time to time, we are not required to obtain an in-principle listing approval from BSE. However, our Company has received an approval via letter dated August 25, 2016 from BSE for using its name in the offer document for listing of our shares on the SME Platform of BSE BSE shall be the Designated Stock Exchange for the purpose of this Issue. The trading is propped to be commenced on or before September 14,2016*
*Subject to receipt of listing and trading approvals from the BSE Limited.
This being a Fixed Price Issue, the allocation in the Net Issue to the Public category shall be made as per Regulations 43(4) of the SEBI (ICDR) Regulations, 2009, es amended from time to time, wherein a minimum of 50% of the Net Offer of shares to the Public shall initially be made available for allotment to Retail individual investors The balance Net Issue of Shares to the public shall be made available for allotment to Individual Applicants other than Retail Individual Investors and other Investors,including corporate bodies/ institutions irrespective of number of shares applied for. Under subscription, if any, in any of the categories, would be allowed to be met with spillover from any of the other categories or a combination of categories at the discretion of our Company in consultation with the Lead Manager and the Designation Stock Exchange. Such intense spill over, if any, would be affected in accordance with applicable laws, rules, regulations and guidelines. All investors shall participate in the issue only through APPLICATIONS SUPPORTED BY BLOCKED AMOUNT ("ASBA") process by providing the details of their respective bank accounts in which the corresponding application aamounts were blocked by Self Certified Syndicate Banks (the "SCSBs").
The Issue has received 236 applications for 34,50,000 Equity Shares resulting 1.47 times subscription (including reserved portion of market maker).The details of the applications received in the Issue (before technical rejections) are as lollowa:
Details of the Application Received (Before Technical Rejections):
The details of applications rejected by the Registrar on technical grounds (including withdrawal) are detailed below:
After eliminating technically rejected applications, the following tables give us category wise net valid applications:
* After spill-over of 5,88,000 shares from Retail Individual Investors to other than Retail individual Investors
Allocation: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - BSE Limited (BSE) on September 09, 2016
A. Allocation to Market Maker (After Technical Rejections): The Basis of Allotment to the Market Maker, at the issue price of Rs. 38/- 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 1,26,000 Equity shares.
B. Allocation to Retail Individual Investors (After Technical Rejections): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs. 38/- per Equity Share, was finalized in consultation with BSE. The category was subscribed by 0.47 times. Total number of shares allotted in this category is 5,19,000 Equity Shares to 173 successful applicants.
The category wise details of the Basis of Allotment are as under:
C. Allocation to Other than Retail Individual lnvestors(After Technical Rejections fi Withdrawal). The Basis of Allotment to the Non Relail Investors, at iho issue price of Rs. 38/- per Equity Share, was finalized in consultation with BSE. The category was subscribed by 1.56 times. Tolal number of shares elicited in this category is 16.95,000 Equity Shares. The category wise basis of allotmem is as under
The Board of Directors of the Company at its meeting held on September 9,2016 has approved the Basis of Allocation of Equity Shares as approved by the Designated Stock Exchange viz. BSE Limited and has authored the corporate action for the transfer of the Equity Shares to various successful applicants.
The CAN and allotment advice and/or notices are beng dispatched to the address of the Applicants as registered with the depositories / as filled in the application form on September 12,2016. Further, the instructions to Self Certified Syndicate Banks for unblocking the amount have been processed on September 9,2016. In case the same is not received within prescribed time, investors may contact at the address given below. The Equity Shares allocated to successful applicants are being credited to their benefiecery accounts subject to validation of the account datails with the depositories concerned. The Company is taking steps to get the Equity Shares admitted for trading on the SME Platform of BSE Limited within six working, days from the date of the closure of the Issue.
Note: All capitalized terms used and not defined herein shall nave the respective meanings assigned to them in the Prospectus dated August 29,2016 ("Prospectus")
INVESTORS PLEASE NOTE
The details of the allotment made would also bo hosted on the website of the Ragistrar to the Issue, Karvy Computershare Private limited at www.karisma.karvy.com All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First / Sole applicants, 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.
Karvy Computershare 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 RIDDHI STEEL AND TUBE LIMITED.