|Basis of Allotment|
(This is only an advertisement for information purpose and not a Prospectus announcement)
AVG LOGISTICS LIMITED
Our Company was originally incorporated as a private limited company, at Delhi, India under the erstwhile Companies Act, 1956 in the name of AVG Logistics Private Limited by way of Certificate of Incorporation dated January 25, 2010. Further, pursuant to conversion of our Company to a public limited company, a fresh certificate of incorporation was issued by Registrar of Companies, Delhi on February 21, 2018. For details of changes in name and registered offices of our Company, please refer to the section titled "History and Certain Corporate matters" beginning on page 115 of the Prospectus.
Registered Office: Shop No. 25, DDA Market, Savita Vihar, Delhi
110092, India. Tel. No.: +91 11 45674071;
PROMOTERS OF OUR COMPANY: MR. SANJAY GUPTA; MS. ASHA GUPTA AND MS.
INITIAL PUBLIC ISSUE OF 30,90,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH ("EQUITYSHARES") OF AVG LOGISTICS LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH ATA PRICE OF RS. 107/- PER EQUITY SHARE, INCLUDING A SHARE PREMIUM OF RS. 97/- PER EQUITY SHARE (THE "ISSUE PRICE"), AGGREGATING TO RS. 3306.30 LAKHS ("THE ISSUE"), OF WHICH 1,54,800 EQUITYSHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 107/ - PER EQUITY SHARE, AGGREGATING RS. 165.64 LAKHS WAS RESERVED FOR THE MARKET MAKER TO THE ISSUE (THE "MARKET MAKER RESERVATION PORTION"). THE PUBLIC ISSUE LESS MARKET MAKER RESERVATION PORTION I.E. NET ISSUE TO PUBLIC WAS OF 29,35,200 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 107/- PER EQUITY SHARE, AGGREGATING RS. 3140.66 LAKHS IS HEREINAFTER REFERED TO AS THE "NET ISSUE". THE PUBLIC ISSUE AND THE NET ISSUE CONSTITUTED 30.01% AND 28.50% RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH.
RISK TO INVESTORS
1. The BRLM associated with the Issue has handled 3 Public Issues in the past 3 years out of which no issue has been closed below Issue Price.
2. The Price/earning Ratio ("P/E Ratio") based on the EPS as adjusted for Fiscal 2017 for the company at the upper end of the price band is as high as 17.40 as compared to the average industry P/E Ratio of 45.07.
3. The average cost of acquisition of equity shares for the promoter Sanjay Gupta, Asha Gupta and Niti Gupta is5.88,6.05 and 6.95 respectively.
In terms of Rule 19(2)(b)(l) of the Securities Contracts (Regulation) Rules, 1957, as
amended (the "SCRR") this was an Issue for at least 25% of the post-Issue
paid-up Equity Share capital of our Company. The Issue was made through the Book Building
Process, in compliance with the Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2009, as amended the ("SEBI ICDR
Regulations") wherein 50.00% of the Net Issue was allocated on a proportionate basis
to Qualified Institutional Buyers ("QIBs") (the "QIB Portion"). Our
Company has allotted 63.70% of the QIB portion to the Anchor Investor. The original
allocation reserved for Anchor Investor was of 8,79,600 Equity Shares aggregating to
59.93% of the QIB Portion. However in order to meet the requirement of Schedule XI of SEBI
(Issue of Capital and Disclosure Requirements) Regulations 2009, the allocation size and
consequently the allotment has been enhanced to 9,34,800 Equity Shares aggregating to
63.70% of the QIB Portion. The said modifications have been done in consultation with
National Stock Exchange of India Limited. 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. Further, 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 QIB
including Mutual Funds, subject to valid Bids being received from them at or above the
Issue Price. Further, not less than 15% of the Net Issue was available for allocation on a
proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue
was available for allocation to Retail Individual Bidders, in accordance with the SEBI
ICDR Regulations, subject to valid Bids being received at or above the Issue Price. All
potential Bidders, other than Anchor Investors, were mandatorily required to participate
in the Offer through the Application Supported by Blocked Amount ("ASBA")
process by providing details of their respective bank account which will be blocked by the
Self Certified Syndicate Banks (the "SCSBs"). For details, see "Issue
Procedure" on page 184 of the Prospectus.
The Equity Shares of the Company offered through the Prospectus are proposed to be listed on EMERGE Platform of National Stock Exchange of India Limited. In terms of the Chapter XB of the SEBI (ICDR) Regulations, 2009, as amended from time to time, the Company has received an in-principal approval letter dated March 13,2018 from National Stock Exchange of India Limited for using its name in the Issue Document for listing of its shares on EMERGE Platform of National Stock Exchange of India Limited. For the purpose of this Issue, EMERGE Platform of National Stock Exchange of India Limited shall be the Designated Stock Exchange.
*Subject to receipt of listing and trading approval from the National Stock Exchange of India Limited.
The Issue has received 1397 bids for 65,80,800 Equity shares (Before Technical Rejections, Multiple Rejections, bids not banked and invalid duplicate bids) including Market Maker Bid of 1,54,800 Equity Shares and Anchor Investor Bid of 934800 Equity Shares. The issue was subscribed to the extent of 2.62 times as per the bid data (excluding Anchor Investor Portion and after removing multiple and duplicate bids). After removing multiple and duplicate bids and technical rejections cases, the issue was subscribed 2.49 times.
The details of application received (Before Technical Rejection and Multiple Rejections but after bids not banked and invalid duplicate bids)
The details of bids rejected by the Registrar on technical grounds are detailed below:
a) Retail Individual Bidders-
a) Non Institutional Bidders-Nil
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 April 10, 2018.
A. Allocation to Market Maker (After Technical Rejections): The Basis of Allotment to the Market Maker, at the Issue price of Rs. 107/- 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 1,54,800 Equity Shares in full out of reserved person of 1,54,800 Equity shares.
B. Allocation to Retail Individual Bidders (After Technical Rejections): The Basis of Allotment to the Retail Individual Bidders, at the Issue price of Rs. 107/- per Equity Share, was finalized in consultation with NSE. The category was subscribed by 1.3586 times. The total number of shares allotted in this category is 10,27,200 Equity Shares. The Category-wise details of the Basis of Allotment are as under:
C. Allocation to Non Institutional Bidders (After Technical Rejections): The Basis of Allotment to Non Institutional Bidders, at the Issue price of Rs. 107/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 7.0218 times. The total number of shares allotted in this category is 440400 Equity Shares. The Category-wise details of the Basis of Allotment are as under:
D. Allocation to QIBs (Excluding Anchor Investors and After Technical Rejections): Qualified Institutional Investor (Excluding Anchor Investors), at the issue price of Rs. 107/- per Equity Share, was finalized in consultation with NSE. The category was subscribed by 1.3423 times. As per the SEBI regulations, Mutual Funds were allotted 5% of the Equity Shares of QIB Category (excluding anchor investors) available i.e. 27600 Equity Shares and other QIBs and unsatisfied demand from Mutual Funds were allotted the remaining available Equity Shares i.e.505200 Equity Shares on a proportionate basis. Total number of shares allotted in this category is 532800 Equity Shares, which were allotted to 04 successful QIB bidders.
The category-wise details of the Basis of Allotment are as under:
E. Allocation to Anchor Investors: Our Company in consultation with the BRLM have allocated 934,800 Equity Shares to 1 Anchor Investor (through 1 application) at the Anchor Investor Issue Price of Rs. 107/- per Equity Share in accordance with SEBI ICDR Regulations. This represents 63.70% of the QIB Portion after adjusting Lotsize:
The Board of Directors of the Company at its meeting held on April 10, 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 has authorized the corporate action for the transfer of the Equity Shares to various successful bidders. The Allotment cum refund advice and/or notices will be dispatched to the address of the investors as registered with the depositories. Further, the instructions to Self Certified Syndicate Banks shall be issued on to April 10, 2018 for unblocking of funds. In case the same is not received within four working days, investors may contact Registrar at the address given below. The Equity Shares allocated to successful bidders are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is taking steps to get the Equity Shares admitted for trading on Emerge Platform of NSE within six working days from the date of the closure of the Issue.
Note: All capitalized terms used and not defined herein shall have the respective meaning assigned to them in the Prospectus.
INVESTORS PLEASE NOTE
The details of the allotment made would also be hosted on the website of the Registrar to the Issue, LINKINTIME INDIA PRIVATE LIMITED at www.linkintime.co.in. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/Sole bidders, serial number of the Bid cum Application Form, number of shares applied for and Bank Branch where the bid had been lodged and payment details at the address of the Registrar given below:
LINKINTIME INDIA PRIVATE LIMITED
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF THE AVG LOGISTICS LIMITED