Basis of Allotment

punjab national bank

Punjab National Bank

Head Office : 7, Bhikhalji Cama Place, New Delhi 110 066 (India) Tel : (91 11) 2610 8741; E-mail: fpo@pnbindia.com
(Constituted under the Banking Companies (Acquisition and transfer of Undertakings) Act, 1970

BASIS OF ALLOCATION

Public Issue of 80,000,000 Equity Shares of Rs.10/- each for cash at a price of Rs.390 per equity share aggregating Rs.31,200 million (The "Issue") by Punjab National Bank ("The BANK" or "The ISSUER"). The Issue comprises a Net Issue to the public of 64,000,000 Equity Shares of Rs.10/- each (The"NET ISSUE"), A reservation for Employees of 8,000,000 Equity Shares of Rs.10/- each, at the Issue Price. The Issue would constitute 25.37% of the fully diluted post-issue pad-up capital of the bank after giving effect to the reduction of the shareholding of the President of India. In connection with the capital reduction as described on page 22 of the prospectus.

THE FACE VALUE OF THE EQUITY SHARES IS RS.10/- EACH AND THE ISSUE PRICE IS 39 TIMES OF FACE VALUE.

The issue was made through the 100% Book Building Process wherein 50% of the Net Issue to the public was to be allocated on a discretionary basis to Qualified Institutional Buyers. Further, not less than 15% of the Net Issue to the public was to be available for allocation on a proportionate basis to Non-Institutional Bidders and 355% of the Net Issue to the public was to be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at the issue Price, 8,000,000 Equity Shares were to be available for allocation on a proportionate basis to the Employees,  subject to valid Bids being received at the Issue Price and the maximum Bid in this portion was limited to 500 Equity shares. 8,000,000 Equity Shares were to be available for allocation on a proportionate basis to the Existing Shareholders, subject to valid Bids being received at the Issue Price.

The Board of Directors of Punjab National Bank wish to thank the investing public, for their response to the issue which opened for subscription on March 7, 2005 and closed on March 11,2005. The issue has received 850077 application for 1226474930 equity shares resulting in 15,3309 times subscription. The details of the subscription received in the issue from Institutional, Non-Institutional, Retail, Employees and Existing Sharesholders categories (before technical rejections) are as under:

Category No.of Applications No. of Shares Bid* Subscription#
Qualified Institutional Buyers 455 860658870 26.8956
Non-Institutional Bidders 10073 260734435 27.1598
Retail Institutional Bidders 777790 79970560 3.5701
Employees 36601 12903240 1.6129
Existing Shareholders 25158 12207825 1.5260

* After eliminating cheque returs. # Including bids received at cut-off price,

Final Demand

A sample of the final demand at different bid prices is as under:

Bid Price No. of Shares % of Total Cumulative Shares Cumulative %
350 616275 0.0495 616275 0.0495
351 615 0 616890 0.0496
352 165 0 617055 0.0496
355 24690 0.002 641745 0.0516
356 120 0 641865 0.0516
357 45 0 641910 0.0516
.358 120 0 642030 0.0516
360 146775 0.0118 788805 0.0634
361 210 0 789015 0.0634
362 120 0 789135 0.0634
363 45 0 789180 0.0634
364 54135 0.0043 843315 0.0677
365 2355 0.0002 845670 0.0679
366 30 0 845700 0.0679
367 525 0 846225 0.068
368 75 0 846300 0.068
369 165 0 846465 0.068
370 1700115 0.1366 2546580 0.2046
371 3540 0.0003 2550120 0.2049
372 195 0 2550315 0.2049
374 1170 0.0001 2551485 0.205
375 103320 0.0083 2654805 0.2133
376 645 0.0001 2655450 0.2133
377 585 0 2656035 0.2134
378 60 0 2656095 0.2134
380 676995 0.0544 3333090 0.2677
381 225 0 3333315 0.2678
382 540 0 3333855 0.2678
383 660 0.0001 3334515 0.2679
384 45 0 3334560 0.2679
385 13200 0.0011 3347760 0.2689
386 180 0 3347940 0.2689
367 195 0 3348135 0.269
388 1305 0.0001 3349440 0.2691
389 5115 0.0004 3354555 0.2695
390 1160027340 93.1853 1163381895 93.4547
Cut Off 81479940 6.5454 1244861835 100
1244861835 100

The Basis of Allocation was finalised in consultation with the Designated Stock Exchange the National Stock Exchange of India Limited ("NSE") on Thursday, March 24, 2005.

A) EMPLOYEES

The Basis of Allocation to the Employees of the Bank, who have bid at cut-off at the Issue Price of Rs.390/- per Equity Share, was finalized in consultation with NSE. The Bank has received 36587 valid applications for 12899985 Equity Shares as against a reservation of 8,000,000 Equity Shares resulting in subscription of 1.6124 times. The details of category-wise allotment are given below:

Category No.of
Aplications
% To
total
No.of
Shares
Applied
% To
Total
No. of Shares
Allocated
Ratio Total No. of
Shares
Allocated
15 57 0.16 855 0.0066 15

FIRM

855
30 168 0.46 5040 0.0391 19 FIRM 3192
45 223 0.61 10035 0.0778 28 FIRM 6244
60 359 0.98 21540 0.1670 37 FIRM 13283
75 120 0.33 9000 0.0698 47 FIRM 5640
90 463 1.27 41670 0.3230 56 FIRM 25928
105 2850 7.79 299250 2.3198 65 FIRM 185250
120 2684 7.34 322080 2.4967 75 FIRM 201300
135 40 0.11 5400 0.0419 84 FIRM 3360
150 683 1.87 102450 0.7942 93 FIRM 63519
165 33 0.09 5445 0.0422 102 FIRM 3366
180 159 0.43 28620 0.2219 112 FIRM 17808
195 574 1.57 111930 0.8677 121 FIRM 69454
210 2211 6.04 464310 3.5993 130 FIRM 287430
225 325 0.89 73125 0.5669 140 FIRM 45500
240 518 1.42 124320 0.9637 149 FIRM 77182
255 2721 7.44 693855 5.3787 158 FIRM 429918
270 62 0.17 16740 0.1298 168 FIRM 10416
285 47 0.13 13395 0.1038 177 FIRM 8319
300 1845 5.04 553500 4.2907 186 FIRM 343170
315 134 0.37 42210 0.3272 196 FIRM 26264
330 52 0.14 17160 0.1330 205 FIRM 10660
345 44 0.12 15180 0.1177 214 FIRM 9416
360 77 0.21 27720 0.2149 224 FIRM 17248
375 93 0.25 34875 0.2703 233 FIRM 21669
390 160 0.44 62400 0.4837 242 FIRM 38720
405 253 0.69 102465 0.7943 2552 FIRM 63756
420 42 0.11 17640 0.1367 261 FIRM 10962
435 23 0.06 10005 0.0776 270 FIRM 6210
450 340 0.93 153000 1.1860 280 FIRM 95200
465 24 0.07 11160 0.0865 289 FIRM 6936
480 125 0.34 60000 0.4651 298 FIRM 37250
495 19078 52.14 9443610 73.2064 306 FIRM 5837868
495 Additonal 1 7.8 16707
Total 365587 100 12899985 100 8000000

B)EXISTING SHAREHOLDERS
The Basis of Allocation to the Existing Shareholders of the Bank, who have bid at cut-off at the Issue Price of Rs.390/- per Equity Shaare, was finalized in consultation with NSE. The Bank has received 25058 vaild applications for 12168555 Equity Shares as againts a reservation of 8,000,000 Equity Shares resulting in subscription of 1.5211 times. The sample details of category-wise allotment are given below:

Category No.of
Aplications
% To
Total
No.of
Shares
Applied
% To
Total
No. of Shares
Allocated
Ratio Total No. of
Shares
Allocated
15 1044 4.17 15660 0.13 15 FIRM 15660
30 1729 6.90 51870 0.43 20 FIRM 34580
45 1357 5.42 61065 0.50 30 FIRM 40710
60 1590 6.35 95400 0.78 39 FIRM 62010
75 580 2.31 435500 0.36 49 FIRM 28420
90 1399 5.58 125910 1.03 59 FIRM 82541
105 3306 13.19 347130 2.85 69 FIRM 228114
120 8270 33.00 992400 8.16 79 FIRM 653330
135 93 0.37 12555 0.10 89 FIRM 8277
150 549 2.19 82350 0.68 99 FIRM 54351
165 54 0.22 8910 0.07 109 FIRM 5886
180 129 0.51 23220 0.19 118 FIRM 15222
195 388 1.55 75660 0.62 128 FIRM 49664
210 703 2.81 147630 1.21 138 FIRM 97014
225 163 0.65 36675 0.30 148 FIRM 24124
240 342 1.36 82080 0.67 158 FIRM 54036
255 2292 9.15 584460 4.80 168 FIRM 385056
300 169 0.67 50700 0.42 197 FIRM 33293
390 28 0.11 10920 0.09 257 FIRM 7196
510 75 0.30 382550 0.31 336 FIRM 25200
705 3 0.01 211555 0.02 464 FIRM 1392
900 8 0.03 7200 0.06 592 FIRM 4738
10055 12 0.05 12060 0.10 661 FIRM 7932
2010 4 0.02 8040 0.07 1322 FIRM 5288
3000 11 0.04 33000 0.27 1974 FIRM 21714
4050 1 0.00 4050 0.03 2664 FIRM 2664
5010 1 0.00 555010 0.04 3298 FIRM 3296
6000 2 0.01 12000 0.10 3947 FIRM 7894
6975 1 0.00 6975 0.06 4589 FIRM 4589
8040 2 0.01 16080 0.13 5289 FIRM 10578
9000 2 0.01 18000 0.15 5921 FIRM 11842
10005 1 0.00 10005 0.08 6582 FIRM 6582
15000 9 0.04 135000 1.11 9868 FIRM 88812
20100 1 0.00 20100 0.17 13224 FIRM 13224
25500 3 0.01 76500 0.63 16776 FIRM 50328
51000 3 0.01 153000 1.26 33553 FIRM 100659
99990 4 0.02 399960 3.29 65783 FIRM 263132
230475 1 0.00 230475 1.89 151628 FIRM 151628
300000 1 0.00 300000 2.47 197368 FIRM 197368
500010 3 0.01 1500030 12.33 326754 FIRM 980262
641040 1 0.00 641040 5.27 419537 FIRM 419537
1700010 1 0.00 1700010 13.97 1115782 FIRM 1115782

C) ALLOCATION TO RETAIL INDIVIDUAL BIDDERS

The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at the issue Pirce of Rs.390/- per Equity Share, was finalized in consultation with NSE. The Bank has received 776237 valid applications for 79906965 Equity Shares In this category resulting in 3.5672 times subscription. The number of shares allotted to Retail Individual Bidders is 22400000. The details of category-wise allotment given below:

Category No. of
Applications
% To
Total
No. of
Shares
Applied
% To
Total
No.of  Shares
Allotcated
Ratio Total No.of
Shares
Allocated
15 62531 8.06 937985 1.17 15 23-82 263085
30 82052 10.57 2461560 3.05 15 37-66 689970
45 55362 7.13 2491290 3.12 15 37-44 698310
60 60772 7.83 3646320 4.56 17 FIRM 1033124
75 26201 3.38 1965075 2.46 21 FIRM 550221
90 39200 5.06 3533400 4.42 24 FIRM 942240
105 55031 7.09 5778255 7.23 29 FIRM 1595899
120 294181 37.90 35301720 44.18 34 FIRM 10002154
135 2987 0.38 403245 0.50 38 FIRM 113506
150 7507 0.97 1126050 1.41 42 FIRM 315294
165 1044 0.13 172260 0.22 46 FIRM 48024
180 2628 0.34 473040 0.59 50 FIRM 131400
195 2445 0.31 476775 0.60 55 FIRM 134475
210 4155 0.54 872550 1.09 59 FIRM 245145
225 1946 0.25 437850 0.55 62 FIRM 120652
225 Additional 1 19-69 521
240 6321 0.81 1517040 1.90 66 FIRM 417186
255 71814 9.25 18312570 22.92 71 FIRM 5098794

D) ALLOCATION TO NON-INSTITUTIONAL BIDDERS

The Basis of Allocation to the Non-Institutional Bidders, who have bid for at the Issue Price of Rs.390/- per Equity Share, was finalized in consultation with NSE. The Bank has received 10022 valid applications for 260572500 Equity Shares in this category resulting in 27,1429 times subscription. The number of shares allotted to Non-Institutional Bidders is 9600000. The sample details of category-wise allotment are given below:

Category No. of
Applications
% To
Total
No. of
Shares
Applied
% To
Total
No.of  Shares
Allotcated
Ratio Total No.of
Shares
Allocated
270 254 2.53 68580 0.03 15 FIRM 3810
285 39 0.39 11115 0.00 15 FIRM 585
300 960 9.58 288000 0.11 15 FIRM 14400
315 70 0.70 22050 0.01 15 FIRM 1050
330 40 0.40 13200 0.01 15 FIRM 600
345 48 0.48 16560 0.01 15 FIRM 720
360 71 0.71 25560 0.01 15 FIRM 1065
375 100 1.00 37500 0.01 15 FIRM 1500
390 107 1.34 41730 0.02 15 FIRM 1605
405 134 1.66 54270 0.02 15 FIRM 2010
450 166 5.59 74700 0.03 17 FIRM 2822
510 560 0.28 285600 0.11 19 FIRM 10640
705 28 1.30 19740 0.01 26 FIRM 728
900 130 2.42 117000 0.04 33 FIRM 4290
1005 243 0.37 244215 0.09 37 FIRM 8991
2010 37 1.14 74370 0.03 74 FIRM 2738
3000 114 0.15 342000 0.13 110 FIRM 12540
4005 15 0.19 60075 0.02 147 FIRM 2205
5010 19 0.20 95190 0.01 184 FIRM 3496
1000 20 0.67 200100 0.08 368 FIRM 7360
15000 67 0.02 1005000 0.39 552 FIRM 36984
20025 2 0.15 40050 0.02 736 FIRM 1472
25005 15 0034 375075 0.14 920 FIRM 13800
49995 34 0.06 1699830 0.65 1839 FIRM 62526
100005 6 0.01 600030 0.23 3678 FIRM 22068
200010 1 0.02 200010 0.08 7356 FIRM 7356
400005 2 0.01 800010 0.31 14711 FIRM 29422
600000 1 0.01 600000 0.23 22067 FIRM 22067
1000005 1 0.02 1000005 0.38 36778 FIRM 36778
1500000 2 0.01 3000000 1.15 55167 FIRM 110334
2253000 1 0.01 2253000 0.86 82861 FIRM 82861
5697975 1 0.01 5697975 2.19 210661 FIRM 210661
6000000 1 0.01 6000000 2.30 221869 FIRM 221869
6280770 1 0.01 6280770 2.41 232296 FIRM 232296
7692300 1 0.01 7692300 2.95 284309 FIRM 284309
7738500 1 0.01 7738500 2.97 286108 FIRM 286108
12472200 1 0.01 12472200 4.79 460505 FIRM 460505
30000000 1 0.01 30000000 11.51 105567 FIRM 1105567

E) ALLOCATION TO QUALIFIED INSTITUTIONAL BUYERS

Category Fls/Banks MFs Flls Insurance Companies VCs Total
No. of Shares 2200748 11213978 14596048 3989226 Nil 32000000

The Chairman and Managing Director of PNB vide resolution dated March 24, 2005 has approved the basis of allocation of shares as above and the shares to various successful applicants have been allotted accordingly.

TheCAN-cum-refund orders in respect of refunds due to applicants have been dispatched to the address of the investors as registered with the depositories. The refund orders have been printed with the Bank Mandate details as registered, if any, with the depositories. This shares allocated to the successful applicants have been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Bank is taking steps to get the Equity shares admitted for trading on National Stock Exchange of India Limited (NSE) and The Stock Exchange, Mumbai (BSE) within seven working days from the date approval of basis of allocation.

INVESTORS PLEASE NOTE: These details of the allocation made would also be hosted on the website of registrars to the issue, MCS Limited at http://www.mcsind.com/All future correspodencein this regard may kindly be addressed to the Registrar to the issue quoting full name of the First/Sole applicants, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:

MCS LIMITED (Unit:PNB-FPO), Sri Padmavati Bhavan, Plot No.93, Road No. 16, MIDC Area, Andheri (East), Mumbai 400093 Tel: (91 22) 1820 1783, E-mail: pnbfpo@mcsind.com; website:http://www.mcsind.com/

For Punjab National Bank
Place : New Delhi                                                                                                                                                           Sd/-
Date: March 27, 2005                                                                                                                                         (S.S Kohll)
Chariman & Managing Director

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