|Basis of Allotment|
|(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 Not
for publication or distribution, directly or indirectly outside India.)
GRETEX INDUSTRIES LIMITED
Our Company was originally incorporated vide Certificate of Incorporation dated July 16,2009 as 'Heritage Barter Private Limited 'under the provisions of the Companies Act, 1956 with the Registrar of Companies, West Bengal bearing Corporate Identification Number U51909WB2009PTC136911. Subsequently, the name of our Company was changed to 'Gretex Industries Private Limited' vide special resolution passed by the shareholders of our Company in their meeting held on January 22, 2013 and fresh Certificate of Incorporation consequent upon change of name issued by the Registrar of Companies, West Bengal on February 7,2013. Our Company was converted into a Public Limited Company pursuant to a special resolution passed by shareholders of our Company at their meeting held on October 21, 2013 and the name of our Company was changed to 'Gretex Industries Limited'. A fresh Certificate of Incorporation was issued by the Registrar of Companies, West Bengal on November 20, 2013. The Corporate Identification Number of our Company is U17296WB2009PLC136911. For details of incorporation, change of name and registered office of our Company, please refer to chapter titled "General Information" and "Our History and Certain Other Corporate Matters" beginning on page 68 and 170 of the Prospectus.
Registered Office: 158, Lenin Sarani, 3rd Floor, Room
No. 7B, Kolkata - 700 013 West Bengal, India
PROMOTER OF OUR COMPANY: AMBUJA TECHNOLOGIES PRIVATE LIMITED, AMBITION TIE-UP PRIVATE LIMITED, ARVIND HARLALKA & SUMIT HARLALKA
PUBLIC OFFER OF 19,80,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FULLY PAID FOR CASH AT A PRICE OF RS. 20/- PER EQUITY SHARE (THE "OFFER PRICE") (INCLUDING A SHARE PREMIUM OF RS. 10/- PER EQUITY SHARE) AGGREGATING UP TO RS. 396.00 LAKHS (THE "OFFER") BY OUR COMPANY, CONSISTING OF A FRESH ISSUE OF 10,56,000 EQUITY SHARES BY OUR COMPANY AGGREGATING UPTO RS. 211.20 LAKHS (THE "FRESH ISSUE") AND OFFER FOR SALE OF 9,24,000 EQUITY SHARES BY PROMOTER GROUP SELLING SHAREHOLDERS I.E. BONANZA AGENCY PRIVATE LIMITED, TALENT INVESTMENT COMPANY PRIVATE LIMITED AND PROMOTER SELLING SHAREHOLDER I.E. AMBITION TIE-UP PRIVATE LIMITED OF WHICH (COLLECTIVELY, THE "SELLING SHAREHOLDER") AGGREGATING TO RS. 184.80 LAKHS (THE "OFFER FOR SALE"). THE OFFER COMPRISES A NET OFFER TO THE PUBLIC OF 18,78,000 EQUITY SHARES (THE "NET OFFER") AND A RESERVATION OF 1,02,000 EQUITY SHARES AGGREGATING UP TO RS. 20.40 LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY THE MARKET MAKER TO THE OFFER (THE "MARKET MAKER RESERVATION PORTION"). THE OFFER AND THE NET OFFER WILL CONSTITUTE 47.01% AND 44.59%, RESPECTIVELY OF THE POST OFFER PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY. THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH. THE PRICE BAND, TO RETAIL INDIVIDUAL INVESTORS AND THE MINIMUM BID LOT HAVE BEEN DECIDED BY OUR COMPANY AND THE SELLING SHAREHOLDERS IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGERS ("BRLMs") AND HAS BEEN ADVERTISED IN ALL EDITIONS OF THE ENGLISH NATIONAL NEWSPAPER BUSINESS STANDARD, ALL EDITIONS OF THE HINDI NATIONAL NEWSPAPER BUSINESS STANDARD AND BENGALI EDITIONS OF THE BENGALI NEWSPAPER AAJ KAL (BENGALI BEING THE REGIONAL LANGUAGE OF WEST BENGAL WHERE OUR REGISTERED OFFICE IS LOCATED), EACH WITH WIDE CIRCULATION, AT LEAST 5 (FIVE) WORKING DAYS PRIOR TO THE BID/ OFFER OPENING DATE AND SHALL BE MADE AVAILABLE TO THE SME PLATFORM OF NATIONAL STOCK EXCHANGE OF INDIA LIMITED ("NSE EMERGE", REFERRED TO AS THE "STOCK EXCHANGES") FOR THE PURPOSE OF UPLOADING ON THEIR WEBSITES THE FACE VALUE OF EQUITY SHARES IS RS. 10/- EACH. THE OFFER PRICE IS RS. 20/- AND IS 2.0 TIMES THE FACE VALUE OFTHE EQUITY SHARES
In terms of Prospectus dated October 7,2016 and as per Regulation 43(4) of SEBI (ICDR) Regulations, 2009 wherein
(a) minimum of 50% of the Net Offer to Public shall initially be made available to Retail Individual Investors.
(b) the balance net offer of shares to the public shall be made available for allotment to
(i) individual applicants other than retail investors and
(ii) other investors including corporate bodies/ institutions irrespective of no. of shares applied for.
(c) the unsubscribed portion of the net offer to any one of the categories specified in (a) or (b) shall/may be made available for allocation in any other category, if so required.
Explanation: for the purpose of Regulation 43(4) of SEBI (ICDR) Regulations, 2009, if the retail individual investor is entitled to more than fifty percent, on proportionate basis, the retail individual investors shall be allocated that higher percentage. All Investors have participated in this offer through ASBA process. For details in this regards, specific attention is invited to chapter "Offer Procedure" on page 288 of the Prospectus.
Risks to Investors:
I. As on date of the Prospectus, the average cost of acquisition per Equity Share by our Promoters viz. Ambuja Technologies Private Limited is 0.29, Ambition Tie-up Private Limited is 5.91, Arvind Harlalka is 10.05 and Sumit Harlalka is 10.05.
II. There are no listed peers engaged in the Issuer's line of business.
THE FACE VALUE OF EQUITY SHARES IS RS. 10 EACH AND THE OFFER PRICE OF RS. 20 IS 2.0 TIMES OF THE FACE VALUE OF THE EQUITY SHARES ISSUE OPENED ON SEPTEMBER 30, 2016 AND CLOSED ON OCTOBER 5, 2016.
The Equity Shares offered through the Prospectus are proposed to be listed of 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 obtained in principal approval dated September 20,2016 from NSE for using its name in Prospectus for listing of our Shares on SME EMERGE. The designated stock exchange is NSE EMERGE.
The Issue has received 174 applications for 26,52,000 Equity shares (Before Technical Rejections and amounts not blocked) (including Market Maker Application of 1,02,000 Equity Shares) resulting 1.34 times subscription. After considering, Technical Rejections cases and Amount not blocked, the issue were subscribed 1.33 times (including the Market Maker Portion).
The details of application received (Before Technical Rejections and amount not blocked):
ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - NSE EMERGE on October 10,2016.
A. Allocation to Market Maker (After Technical Rejections after amount not blocked): The Basis of Allotmentto the Market Maker, atthe issue price of Rs. 20/- per Equity Share, was finalized in consultation with NSE. The category was subscribed by 1.00 times. The total number of shares allotted in this category is 1,02,000 Equity shares in full out of reserved portion of 1,02,000 Equity Shares.
B. Allocation to Retail Individual Investors (After Technical Rejections and amount not blocked): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs. 20/- per Equity Share, was finalized in consultation with NSE. The category was subscribed by 1.06 times. Total number of shares allotted in this category is 9,42,000 Equity Shares. The category wise basis of allotment is as under:
C. Allocation to Other than Retail Individual Investor (After Technical Rejection): The Basis of Allotment to other than Retail Individual Investors, at the issue price of Rs 20/- per Equity Share, was finalized in consultation with NSE. The category was subscribed by 1.64 times. Total number of shares allotted in this category is 9,36,000 Equity Shares. The category wise basis of allotment is as under:
The Board of Directors of the Company at its meeting held on October 10,2016 has taken on record the Basis of Allocation of Equity Shares approved by the Designated Stock Exchange viz. EMERGE Platform of NSE 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 October 17, 2016. Further, the instructions to SCSBs shall be issued on October 12, 2016 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 registrarto the Issue atthe address given below. The Company is taking steps to get tie Equity Shares admitted for trading on the NSE EMERGE within six working days from the date of the closure of the Issue. The trading is proposed to commence on or before October 17, 2016 subject to receipt of listing and trading approvals from NSE.
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 atthe address of the Registrar given below:
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 GRETEX INDUSTRIES LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.