|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 Not for publication or distribution, directly or indirectly outside India.)
VERA SYNTHETIC LIMITED
Our Company was originally Incorporated as Vera Synthetic Private Limited' as a private limited company under the provisions of Companies Act, 1956, vide Certificate of Incorporation Issued by Deputy Registrar of Companies, Gujarat, Dadra and Nagar Haveli on February 16, 2000 bearing Registration No. 04-37369. Subsequently, it was converted into public limited company pursuant to shareholders resolution passed at Extra-ordinary General Meeting of our Company held on August 31, 2017 and the name of our Company was changed to Vera Synthetic Limited pursuant to issuance of fresh certificate of incorporation dated September 25, 2017 by Registrar of Companies, Gujarat, Ahmedabad. The Corporate Identification Number of our Company is U17110GJ2000PLC037369. For further 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 61 and page 137 of the Prospectus.
Registered Office: Office No. UL-27, Pattani Plaza,
Devubag, Dairy Road, Bhavnagar-364002, Gujarat, India
PROMOTERS OF OUR COMPANY: MR. SUNIL MAKWANA AND MR. NAGIN MAKWANA
BASIS OF ALLOTMENT
INITIAL PUBLIC ISSUE OF 13,35,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH ("EQUITY SHARES") OF VERA SYNTHETIC LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS. 40/- PER EQUITY SHARE, INCLUDING A SHARE PREMIUM OF RS. 30/- PER EQUITY SHARE (THE "ISSUE PRICE"), AGGREGATING RS. 534.00 LAKHS ("THE ISSUE"), OF WHICH 69,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 40/- PER EQUITY SHARE, AGGREGATING RS. 27.60 LAKHS WERE RESERVED FOR SUBSCRIPTION BY THE MARKET MAKER TO THE ISSUE (THE "MARKET MAKER RESERVATION PORTION"). THE ISSUE LESS MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 12,66,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 40/- PER EQUITY SHARE, AGGREGATING RS. 506.40 LAKHS IS HEREINAFTER REFERED TO AS THE "NET ISSUE". THE ISSUE AND THE NET ISSUE CONSTITUTE 27.05% AND 25.65% RESPECTIVELY OFTHE FULLY DILUTED POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.
Risks to Investors:
I. As on date of the Prospectus, the average cost of acquisition per Equity Share by our Promoters viz. Sunil Makwana is Rs. 2.19 and Nagin Makwana is Rs. 0.44. In terms of Prospectus dated March 21, 2018 and as per Regulation 43(4) of SEBI (ICDR) Regulations, 2009 wherein:
a) 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 Issue through ASBA process. For details in this regards, specific attention is invited to chapter "Issue Procedure" on page 215 of the Prospectus.
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10.00 EACH. THE
ISSUE PRICE OF RS. 40.00
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 in-principle approval letter dated March 14,2018 from National Stock Exchange of India Limited 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.
The Issue has received 833 applications for 43,11,000 Equity shares (Before Technical Rejections but after Bids not Banked and Invalid Duplicate Bids, Bid not registered) (including Market Maker Application of 69,000 Equity Shares) resulting 3.238 times subscription. After considering, a Technical Rejection case, the issue was subscribed 3.218 times (including the Market Maker Portion). The details of application received (Before Technical Rejection and after Bids not banked)
The details of applications rejected by the Registrar on technical grounds are detailed below
Detail of the Applications Received (After Technical Rejection):
ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange -NSE on April 9, 2018
A. Allocation to Market Maker (After Technical Rejections): The Basis of Allotmentto the Market Maker, at the issue price of Rs. 40/- 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 69,000 Equity shares in full out of reserved portion of 69,000 Equity Shares.
B. Allocation to Retail Individual Investors (After Technical Rejections): The Basis of Allotmentto the Retail Individual Investors, at the issue price of Rs. 40/-per Equity Share, was finalized in consultation with NSE. The category was subscribed by 3.65 times. Total number of shares allotted in this category are 6,93,000 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 40/- per Equity Share, was finalized in consultation with NSE. The category was subscribed by 3.03 times. Total number of shares allotted in this category is 5,73,000 Equity Shares. The category wise basis of allotment is as under:
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 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. Further, the instructions to SCSBs has been issued on April 10, 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 April 12, 2018 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.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 atthe address of the Registrar given below:
LINK INTIME INDIA 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 VERA SYNTHETIC LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.