POWER GRID CORPORATION OF INDIA LIMITED BASIS OF ALLOTMENT

Transcription

1 POWER GRID CORPORATION OF INDIA LIMITED Our Company was incorporated in New Delhi on October 23,1989 under the Companies Act, 1956 (the "Companies Act") as a public limited company under the name 'National Power Transmission Corporation Limited'. For more information on change in the name of our Company and our registered office, see "History and Certain Corporate Matters" on page 130 of the Prospectus filed with the RoC. Registered Office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi , India Tel: +91 (11) Fax: +91 (11) Corporate Office: "Saudamini", Plot No.2, Sector 29, Gurgaon , Haryana, India Tel: +91 (124) Fax: +91 (124) Company Secretary and Compliance Officer: Ms. Divya Tandon, Company Secretary Tel: +91 (124) Fax: +91 (124) Website: BASIS OF ALLOTMENT FURTHER PUBLIC ISSUE OF 841,768,246 EQUITY SHARES OF RS. 10 EACH ("EQUITY SHARES") FOR CASH AT A PRICE OF RS. 90* PER EQUITY SHARE OF POWER GRID CORPORATION OF INDIA LIMITED ("POWERGRID", "OUR COMPANY" OR "THE ISSUER") AGGREGATING RS. 74,423.4 MILUON (THE "ISSUE"). THE ISSUE COMPRISED A FRESH ISSUE OF 420,884,123 EQUITY SHARES BY OUR COMPANY (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 420,884,123 EQUITY SHARES BY THE PRESIDENT OF INDIA ACTING THROUGH THE MINISTRY OF POWER, GOVERNMENT OF INDIA (THE "SELLING SHAREHOLDER") (THE "OFFER FOR SALE"). THE ISSUE COMPRISED A NET ISSUE TO THE PUBLIC OF 838,378,646 EQUITY SHARES ('THE NET ISSUE") AND A RESERVATION OF 3,389,600 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE CONSTITUTED 18.2% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY AND THE NET ISSUE CONSTITUTED 18.1% OF THE POST ISSUE PAID-UP EQUFTY CAPITAL OF OUR COMPANY. THE FACE VALUE OF THE EQUITY SHARE IS RS. 10 EACH AND THE ISSUE PRICE IS RS. 90 PER SHARE. THE ISSUE PRICE IS 9.0 TIMES THE FACE VALUE. *Discount of RS to the Issue Price has been offered to Retail Bidders ("Retail Discount") and Eligible Employees (the "Employee Discount"), respectively, on Allotment. Based on the Retail and Employee Discount, the Issue Price for both the Retail Individual Bidders and Eligible Employees is RS per Share. Bid opened on November 9,2010 for all Bidders. The Bid closed on November 11,2010 for QIB Bidders and on November 12,2010 for Retail and Non-Institutional Bidders, (including Eligible Employees bidding under Employees Reservation Portion) This Issue was made through the Book Building Process where up to 50% of the Net Issue was allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") ("QIB Portion"). Further, 5% of the QIB Portion was available for allocation on a proportionate basis to Mutual Funds only. The remainder was available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids received from them at or above the Issue Price. In addition,

2 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 on a proportionate basis to Retail Bidders, subject to valid Bids received at or above the Issue Price. Any Bidder could participate in this Issue through the Application Supported by Blocked Amount ("ASBA") process by providing the details of the ASBA Accounts in which the corresponding Bid Amounts were blocked by the Self Certified Syndicate Banks ("SCSBs"). For more information, specific attention is invited to "Issue Procedure" on page 375 of the Prospectus. Promoter: President of India, acting through the Ministry of Power, Government of India ("MoP") and the Ministry of Development of North Eastern Region, Government of India ("MoDoNER") The Issue received 1,427,845 applications for 12,493,521,170 resulting in times subscription, out of these there were 302,904 number of applicaitons for 7,756,839,090 made under the ASBA process. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors and Eligible Employee categories are as under: (Before technical rejections) Sr. No. Applications Received times subscribed 1 Retail Individual Bidders Non Institutional Bidders Qualified Institutional Bidders Eligible Employees Total Final Demand A summary of the final demand as per the Bombay Stock Exchange Limited ("BSE") and the National Stock Exchange of India Limited ("NSE") as on the Bid/ Issue Closing Date at different Bids is as detailed hereunder: Bid Price % to Cumulative Total Cumulative % of Total

3 Cutoff price The basis of allocation was finalized in consultation with the Designated Stock Exchange, being the NSE on November 20,2010. A. Allocation to Eligible Employees (Including ASBA Applications) (After Technical Rejections) The basis of allocation to the Eligible Employees of Power Grid Corporation of India Limited, who have Bid at cut off or at the Issue Price of Rs. 90/- per Share (Discount of Rs for Eligible Employees on Allotment), was finalized in consultation with NSE. This category has been subscribed to the extent of 1.14 times. There were 1,207 applications for 1,072,955 made under ASBA process. Of these 1,180 applications for 1,048,125 equity shares were found valid and they were considered for Allotment. The number of Allotted in this category is 3,389,600 to 4,495 applicants. The category-wise details of the basis of allocation are as under: Applications % to applied % of Ratio of allottees to applicants : : : : : : : : : : : : : : : : : Additional 1 28 : B. Allocation to Retail Individual Investors (Including ASBA Applications) (After Technical Rejections)

4 90/- per Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 3.81 times. There were 300,068 applications for 208,927,875 equity shares made under the ASBA process. Of these 293,703 applications for 205,937,550 were found valid and they were considered for Allotment. The number of Allotted in Retail Investor category is 293,432,526 which were allotted to 1,274,839 successful applicants. The category-wise details of the basis of allocation are as under: Applications % to applied % of Ratio of allottees to applicants : : : : : : : : : : : : : : Additional 1 1: : : : Additional 1 29: C. Allocation to Non Institutional Investors (Including ASBA Applications) (After Technical Rejections) The basis of allocation to the Non-Institutional Investors, who have Bid at the Issue Price of Rs. 90/- per Share was finalized in consultation with NSE. This category has been subscribed to the extent of times. There were 1,300 applications for 791,476,530 made under ASBA process. Of these 1,127 applications for 785,780,125 were found valid and they were considered for Allotment. The number of Allotted in Non

5 sample of category-wise details of the basis of allocation are as under: Applications % to applied % of Ratio of allottees to applicants : : : : : : : : : : : : : : : : : : : D. Allocation to QIBs (Including ASBA Applications) (After Technical Rejections) The basis of allocation to the QIBs, who have Bid at the Issue price of Rs. 90/- per Share was finalised in consultation with NSE. This category has been subscribed to the extent of times. There were 329 applications for 6,755,361,730 made under ASBA process. These 329 applications for 6,755,361,730 were found valid and they were considered for Allotment. The quantum of Allotted to this category is 419,189,323 for 391 successful applicants on proportionate basis. Further, Mutual Funds were initially allocated 5% of the quantum of Shared available, that is 20,959,467 number of. Fls/Banks Flls MFs ICs Others Total No.of allocated The FPO Committee of the Company at its meeting held at Hyderabad on 23rd November, 2010

6 the to the successful Bidders. The CAN-cum-Refund Orders and Allotment advice and/ or notices will be dispatched to the address of the Bidders as registered with the depositories on or prior to 25th November, Further, the instructions to Self Certified Syndicate Banks have been dispatched on or prior to 22nd November, In case the same is not received within 10 days, investors may contact at the address given below. The Refund Orders have been over-printed with the bank account, details as registered, if any, with the depositories. The allocated to successful applicants 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 admitted for trading on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited on 25th November INVESTORS PLEASE NOTE The details of the allocation made are available on the website of Registrar to the Issue, Karvy Computershare Private Limited at All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, serial number of the Bid-cum-Application Form, number of Bid for, name of the Member of the Syndicate, place where the Bid was submitted and payment details at the address given below: Computershare Private Limited: Unit: Power Grid Corporation of India Limited Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur, Hyderabad , Fax: TOLL FREE - HELPLINE NUMBER: Place : Hyderabad Date : November 23,2010 For Power Grid Corporation of India Limited Sd/- Divya Tandon Company Secretary THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUFTY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF POWER GRID CORPORATION OF INDIA LIMITED. Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated November 16,2010 filed with RoC, National Capital Territory, Delhi and Haryana. Power Grid Corporation of India Limited subject to market conditions and other considerations, has made a further public offer of securities and has filed a Prospectus with the Registrar of Companies, National Capital Territory of Delhi and Haryana and the Securities and Exchange

7 Board of India (SEBI). The Prospectus is available on the website of the SEBI at as well as on the website of the Book Running Lead Managers at worldwide/ india/ indian_offerings.html, and Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled "Risk Factors" of the Prospectus filed with the RoC. This advertisement may not be published or distributed in the United States and does not constitute an offer of securities for sale or the solicitation of any offer to buy securities in any jurisdiction, including the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "US Securities Act), or an exemption therefrom. The have not been and will not be registered under the US Securities Act or any state securities laws in the United States and may not be offered or sold in the United States except c pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and in accordance with any applicable U.S. state" securities laws. The are being offered and sold within the United States only in compliance with Rule 144A under the US Securities Act, and outside the United States only in compliance with Regulation S under the US Securities Act and the applicable laws of each jurisdiction where such offers and sales occur. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in this advertisement, will not accepeted.