Basis of Allotment

New Page 12

(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 Not for publication or distribution, directly or indirectly outside India.)

SOUTH WEST PINNACLE EXPLORATION LIMITED

Our Company was originally incorporated as "South West Pinnacle Exploration Private Limited" at New Delhi, as a Private Limited Company under the provisions of Companies Act, 1956 vide Certificate of Incorporation dated November 27,2006 bearing Corporate Identity Number U13203DL2006PTC155912 issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Pursuant to change in the registered office of our Company from one state to another state vide resolution passed by shareholders of our company in the Extra Ordinary General Meeting held on September 11,2012 consequent to which fresh certificate of incorporation was issued by Registrar of Companies, Haryana, on June 05,2013 bearing Corporate Identification Number U13203HR2006PTC049480. Subsequently, pursuant to shareholders resolution passed at Extraordinary General Meeting of our Company held on October 31,2017, our Company was converted into a Public Limited Company, following which our name was changed to "South West Pinnacle Exploration Limited" and a Fresh Certificate of Incorporation consequent upon conversion of company to Public Limited dated November 17,2017 was issued by Registrar of Companies, Delhi. The Corporate Identification number of our Company is U13203HR2006PLC049480. For details of incorporation, Change of name and registered office of our Company, please refer to chaptertitled "General Information" and "Our History and Certain Other Corporate Matters" beginning on page 71 and 163 respectively of the Prospectus.

Registered Office: Siddhartha House, 4th Floor, Plot No.6, Sector 44, Gurgaon-122003 (Haryana) India Tel No.: +911244235400; Fax No.: +911244235402; E-mail: info@southwestpinnacle.com ; Website: www.southwestpinnacle.com; Corporate Identification Number: U13203HR2006PTC049480 Contact Person: Arjun Sharma, Company Secretary and Compliance Officer

PROMOTERS OF OUR COMPANY: VIKAS JAIN AND PIYUSH JAIN

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFER CONSISTING OF FRESH ISSUE OF 45,96,800 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FULLY PAID FOR CASH AT A PRICE OF RS. 78/- PER EQUITY SHARE (THE "ISSUE PRICE") (INCLUDING A SHARE PREMIUM OF RS. 68 PER EQUITY SHARE) AGGREGATING RS. 3585.50 LAKHS (THE "ISSUE"), OF WHICH 2,35,200 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 78/- PER EQUITY SHARE, AGGREGATING RS. 183.45 LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY THE MARKET MAKER TO THE ISSUE (THE "MARKET MAKER RESERVATION PORTION") AND 80000 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT PRICE OF RS.78/- PER EQUITY SHARE AGGREGATING RS.62.40 LAKHS WAS RESERVED FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEE (THE "EMPLOYEE RESERVATION PORTION") THE ISSUE LESS MARKET MAKER RESERVATION PORTION AND EMPLOYEE RESERVATION PORTION I.E ISSUE OF 42,81,600 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 78/- PER EQUITY SHARE, AGGREGATING RS. 3339.64 LAKHS IS HEREINAFTER REFERRED TO AS THE "NET ISSUE". THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 32.95% and 30.69% RESPECTIVELY OF THE FULLY DILUTED POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.

The Company has undertaken in consultation with the BRLM, a private placement of 54,400 Equity Shares for cash consideration aggregating Rs. 42.43 Lakhs ("Pre IPO Placement"). The size of the Issue as disclosed in the Draft Red Hearing Prospectus dated January 15,2018 being 46,51,200 Equity Shares has been reduced to 45,96,800 Equity Shares accordingly.

Risks to Investors:

I. As on date of the Prospectus, the average cost of acquisition per Equity Share by our Promoters viz. Vikas Jain and Piyush Jain is Rs. 4 and Rs. 3 respectively.

II. This being the first public Issue of our Company, there has been no formal market for the Equity Shares. The face value of the Equity Shares is Rs. 10 each. The Floor Price is 7.6 times the face value and the Cap Price is 7.8 times the face value. The Issue Price (determined and justified by our Company in consultation with the BRLM as stated in "Basis for lssue Price" on page 111 of the Prospectus should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.
All Investors have participated in this Issue through ASBA process. For details in this regards, specific attention is invited to chapter "Issue Procedure" on page 367 of the Prospectus.

THE FACE VALUE OF EQUITY SHARES IS RS. 10/- EACH.
THE ISSUE PRICE IS RS. 78/-AND IS 7.8 TIMES THE FACE VALUE OF THE EQUITY SHARES

                                                      ISSUE ISSUE OPENED ON: TUESDAY, FEBRUARY 06, 2018* 
CLOSED ON: THURSDAY, FEBRUARY 08, 2018

*THE ANCHOR INVESTOR BID/ISSUE PERIOD WAS TUESDAY, FEBRUARY 05, 2018

In terms of Rule 19(2) (b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended (the "SCRR") the Issue is being made for at least 25% of the post-Issue paid-up Equity Share capital of our Company wherein 49.96% of the Net Issue was available for allocation on a proportionate basis to QIBs, provided that our Company, in consultation with the BRLM allocated upto 59.91 % of the QIB Portion to Anchor Investors on a discretionary basis after adjusting lot size. One-third of the Anchor Investor Portion was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription in the Anchor Investor Portion, the remaining Equity Shares was added to the QIB Portion. 5% of the QIB Portion (excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion (excluding Anchor Investor Portion) was available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. In the event the aggregate demand from Mutual Funds is less than as specified above, the balance Equity Shares available for Allotment in the Mutual Fund Portion will be added to the QIB Portion and allocated proportionately to the QIB Bidders (other than Anchor Investors) in proportion to their Bids. Further 15.02% of the Net Issue was available for allocation on a proportionate basis to Non Institutional Bidders and 35.01 % of the Net Issue was available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. For further details, please refer to the chaptertitled "Issue Procedure" on page 367 of Prospectus.

The Equity Shares of our Company issued 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. Our Company has received an approval letter dated January 23, 2018 from NSE EMERGE for using its name in the Issue document for listing of our shares on the EMERGE Platform of National Stock Exchange of India Limited. For the purpose of this Issue, EMERGE Platform of the National Stock Exchange of India Limited shall be the Designated Stock Exchange.

SUBSCRIPTION DETAILS

The Issue has received 10854 applications for 12,61,85,600 Equity shares (Before Technical Rejections, Multiple Rejections, but after bids not banked and invalid duplicate bids) including Market Maker Application of 2,35,200 Equity Shares. The Issue was subscribed to the extent of 37.99 times (excluding Anchor Investor Portion and after removing multiple and duplicate bids) as per the bid books of NSE. After considering the technical rejections cases, the issue was subscribed 37.61 times. The details of application received (Before Technical Rejection and Multiple Rejections but after bids not banked and invalid duplicate bids)

CATEGORY NUMBER OF APPLICATIONS NUMBER OF EQUITY SHARES SUBSCRIPTION
Market Maker 1 235200 1
Employee Reservation 24 83200 1.04
Retail Individual Investors 10682 1,70,91,200 11.40
Non Institutional Investors 134 9,20,73,600 143.14
Qualified Institutional Buyer (Excluding Anchor Investors) 11 1,54,19,200 18.01
Anchor Investors 2 12,83,200 1.001
TOTAL 10854 12,61,85,600 27.45

Final Demand

Sr.No. Bid Price No. of Equity Shares % to total Cumulative % of Cumulative total
1. 76.00 49,600 0.04% 49,600 0.04%
2. 77.00 14,400 0.01% 64,000 0.05%
3. 78.00 12,07,13,600 95.81% 12,07,77,600 95.86%
4. Cut-Off 52,09,600 4.14% 12,59,87,200 100%
Total 125987200 100.00

ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - EMERGE Platform of the National Stock Exchange of India Limited on February 15,2018.

A. Allocation to Market Maker (After Technical Rejections and Multiple Rejections): The Basis of Allotment to the Market Maker, at the issue price of Rs. 78/- 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 2,35,200 Equity shares in full out of reserved portion of 2,35,200 Equity Shares.

B. Allocation to Employee Reservation (After Technical Rejections and Multiple Rejections): The Basis of Allotment to the Employee Reservation, at the issue price of Rs. 78/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 1.04 times. Total number of shares allotted in this category is 80,000 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
%
to
total
Proportionate
Shares
Available
Allocation per
Applicant (Before
Rounding Off)
Allocation per
Applicant (After
Rounding Off)
Ratio of
Allottees to
the Applicants
Total No. of
Equity Shares
allotted
Surplus/
(Deficit)
1600 8 33.33 12800 15.38 12308 1538.50 1600 1:1 12800 492
3200 9 37.50 28800 34.62 27692 3076.89 3200 1:1 28800 1108
4800 2 8.33 9600 11.54 9231 4615.50 3200 1:1 6400 -2831
4800 1600 additional share is allocated for serial no 3 in the ratio of  1:2 1600 1:2 1600 1600
6400 5 20.83 32000 38.46 30769 6153.80 4800 1:1 24000 -6769
6400 1600 additional  share is allocated for serial no 4 in the ratio of  4:5 1600 4:5 6400 6400

There were 89 applications for 142,400 Equity Shares bided by Retail in Employee Category, these applications were not part of Eligible Employee List. Hence, these applications have been shifted to Retail Category.
C. Allocation to Retail Individual Investors (After Technical Rejections and Multiple Rejections): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs. 78/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 11.26 times. Total number of shares allotted in this category is 14,99,200 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
%
to
total
Proportionate
Shares
Available
Allocation per
Applicant (Before
Rounding Off)
Allocation per
Applicant (After
Rounding Off)
Ratio of
Allottees to
the Applicants
Total No. of
Equity Shares
allotted
Surplus/
(Deficit)
1600 10553 100.00 16884800 100 1499200 142.06 1600 23:259 1499200 0

There were 89 applications for 142,400 Equity Shares bided by Retail in Employee Category, these applications were not part of Eligible Employee List. Hence, these applications have been shifted to Retail Category.
D. Allocation to Non Institutional Investor (After Technical Rejection and Multiple Rejections): The Basis of Allotment to Non Institutional Investors, at the issue price of Rs. 78/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 143.14 times. Total number of shares allotted in this category is 6,43,200 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
%
to
total
Proportionate
Shares
Available
Allocation per
Applicant (Before
Rounding Off)
Allocation per
Applicant (After
Rounding Off)
Ratio of
Allottees to
the Applicants
Total No. of
Equity Shares
allotted
Surplus/
(Deficit)
3200 10 7.46 32000 0.03 220 22.00 1600 0:10 0 -220
4800 5 3.73 24000 0.03 167 33.40 1600 0:5 0 -167
6400 8 5.97 51200 0.06 358 44.75 1600 0:8 0 -358
8000 5 3.73 40000 0.04 279 55.80 1600 0:5 0 -279
9600 4 2.99 38400 0.04 268 67.00 1600 0:4 0 -268
11200 2 1.49 22400 0.02 156 78.00 1600 0:2 0 -156
12800 6 4.48 76800 0.08 537 89.50 1600 0:6 0 -537
14400 1 0.75 14400 0.02 101 101.00 1600 0:1 0 -101
16000 3 2.24 48000 0.05 335 111.67 1600 0:3 0 -335
19200 1 0.75 19200 0.02 134 134.00 1600 0:1 0 -134
24000 2 1.49 48000 0.05 335 167.50 1600 0:2 0 -335
25600 1 0.75 25600 0.03 179 179.00 1600 0:1 0 -179
27200 3 2.24 81600 0.09 570 190.00 1600 0:3 0 -570
30400 1 0.75 30400 0.03 212 212.00 1600 0:1 0 -212
32000 2 1.49 64000 0.07 447 223.50 1600 0:2 0 -447
33600 1 0.75 33600 0.04 235 235.00 1600 0:1 0 -235
43200 1 0.75 43200 0.05 302 302.00 1600 0:1 0 -302
46400 1 0.75 46400 0.05 324 324.00 1600 0:1 0 -324
49600 1 0.75 49600 0.05 346 346.00 1600 0:1 0 -346
51200 1 0.75 51200 0.06 358 358.00 1600 0:1 0 -358
52800 2 1.49 105600 0.11 738 369.00 1600 1:2 1600 862
54400 1 0.75 54400 0.06 380 380.00 1600 0:1 0 -380
59200 1 0.75 59200 0.06 414 414.00 1600 0:1 0 -414
60800 1 0.75 60800 0.07 425 425.00 1600 0:1 0 -425
64000 3 2.24 192000 0.21 1341 447.00 1600 1:3 1600 259
65600 3 2.24 196800 0.21 1375 458.33 1600 1:3 1600 225
76800 1 0.75 76800 0.08 537 537.00 1600 0:1 0 -537
78400 1 0.75 78400 0.09 548 548.00 1600 0:1 0 -548
80000 2 1.49 160000 0.17 1118 559.00 1600 1:2 1600 482
86400 1 0.75 86400 0.09 604 604.00 1600 0:1 0 -604
97600 1 0.75 97600 0.11 682 682.00 1600 0:1 0 -682
99200 1 0.75 99200 0.11 693 693.00 1600 0:1 0 -693
100800 1 0.75 100800 0.11 704 704.00 1600 0:1 0 -704
102400 1 0.75 102400 0.11 715 715.00 1600 0:1 0 -715
104000 2 1.49 208000 0.23 1453 726.50 1600 1:2 1600 147
110400 1 0.75 110400 0.12 771 771.00 1600 1:1 1600 829
115200 2 1.49 230400 0.25 1610 805.00 1600 1:2 1600 -10
116800 1 0.75 116800 0.13 816 816.00 1600 1:1 1600 784
118400 1 0.75 118400 0.13 827 827.00 1600 1:1 1600 773
120000 2 1.49 240000 0.26 1677 838.50 1600 1:2 1600 -77
121600 1 0.75 121600 0.13 849 849.00 1600 1:1 1600 751
128000 1 0.75 128000 0.14 894 894.00 1600 1:1 1600 706
144000 1 0.75 144000 0.16 1006 1006.00 1600 1:1 1600 594
219200 2 1.49 438400 0.48 3063 1531.50 1600 1:1 3200 137
432000 1 0.75 432000 0.47 3018 3018.00 3200 1:1 3200 182
512000 1 0.75 512000 0.56 3577 3577.00 3200 1:1 3200 -377
638400 1 0.75 638400 0.69 4460 4460.00 4800 1:1 4800 340
640000 1 0.75 640000 0.70 4471 4471.00 4800 1:1 4800 329
768000 1 0.75 768000 0.83 5365 5365.00 6400 1:1 6400 1035
896000 1 0.75 896000 0.97 6259 6259.00 6400 1:1 6400 141
1025600 1 0.75 1025600 1.11 7165 7165.00 8000 1:1 8000 835
1281600 4 2.99 5126400 5.57 35812 8953.00 9600 1:1 38400 2588
1283200 1 0.75 1283200 1.39 8964 8964.00 9600 1:1 9600 636
1601600 1 0.75 1601600 1.74 11188 11188.00 11200 1:1 11200 12
1921600 2 1.49 3843200 4.17 26848 13424.00 12800 1:1 25600 -1248
1921600 1600 additional share is allccated for Serial no 55 in the ratio of 1:2 1600 1:2 1600 1600
2307200 1 0.75 2307200 2.51 16117 16117.00 16000 1:1 16000 -117
2320000 1 0.75 2320000 2.52 16207 16207.00 16000 1:1 16000 -207
2345600 1 0.75 2345600 2.55 16386 16386.00 16000 1:1 16000 -386
2563200 11 8.21 28195200 30.62 196964 17905.82 17600 1:1 193600 -3364
2563200 1600 additional share is allccated for serial no 59 in the ratio of 2:11 1600 2:11 3200 3200
2996800 5 3.73 14984000 16.27 104674 20934.80 20800 1:1 104000 -674
2998400 7 5.22 20988800 22.80 146622 20946.00 20800 1:1 145600 -1022
2998400 1600 additional share is allccated for serial no 61 in the ratio 1:7 1600 1:7 1600 1600

There were 3 applications for 57,600 Equity Shares bided by Nil in QIB category, hence the said application has been shifted to Nil Category.

E. Allocation to Qualified Institutional Investor (Excluding Anchor Investors and After Technical Rejection and multiple rejections): Allotment to QIBs, who have bid at the Issue Price of 78/- per Equity Share, has been done on a proportionate basis in consultation with the NSE. This category has been subscribed to the extent of 17.97 times of Net QIB portion. As per the SEBI Regulations, Mutual Funds were to be allotted 5% of the Equity Shares of Net QIB portion available i.e. 42880 Equity Shares, accordingly 41,600 equity shares were allotted after rounding off the lot size and remaining available shares i.e. 8,16,000 Equity Shares were allotted to QIBs including Mutual Fund on a proportionate basis to 11 such applicants.

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

Category Fls/Banks MPs ICs NBFC AIF Fll FPC Total
QIB 1,10,400 - 2,20,800 3,29,600 33,600 163200 857600

There were 3 applications for 57,600 Equity Shares bided by Nil in QIB category, hence the said application has been shifted to Nil Category.

F. Allocation to Anchor Investors: Our Company in consultation with the BRLM have allocated 1281600 Equity Shares to 1 Anchor Investor (through 2 different schemes for which 2 applications were received) at the Anchor Investor Issue Price of Rs. 78/- per Equity Share in accordance with SEBI ICDR Regulations. This represents 59.91 % of the QIB Portion after adjusting Lot size:

Category Fls/Banks MPs ICs Bodies Corporate AIF Fll FPC Total
Anchor 12,81,600 - - - - - 1281600

The Board of Directors of the Company at its meeting held on February 15,2018 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 Allotment cum refund advice and/or notices will be dispatched to the address of the Applicants as registered with the depositories. Further, the instructions to SCSBs will be issued on or before February 16,2018 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 the 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 19,2018 subject to receipt of listing and trading approvals from NSE.

INVESTORS PLEASE NOTE

The details of the allotment made will be hosted on the website of the Registrar to the Issue 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, L.B.S. Marg, Vikhroli (West), 400083,Maharashtra, India
Tel: +91 22 49186200 Fax: +91 22 49186195 Email: swpel.ipo@linkintime.co.in Website: www.linkintime.co.in
Investor Grievance Id: swpel.ipo@linkintime.co.in Contact Person: Shanti Gopalkrishnan SEBI Registration No: INR000004058

Date: February 15,2018

Place: Gurgaon

For south West Pinnacle Exploration Limited
On behalf of the Board of Directors
Sd/-
Vikas Jain
Chairman and Managing Director

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 SOUTH WEST PINNACLE EXPLORATION LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

Close