KAVERI SEED COMPANY LIMITED

(Our Company was originally Incorporated on August 27,1086 as Kaveri Seed Company Private Limited under the Companies Act, 1956 at Andhra Pradesh with Registration No. 6728 of 1986-87. With effect from November 7, 2006, our Company was converted into a public limited and received a fresh certificate of incorporation in the name of "Kaveri Seed Company Limited". Our Corporate Identity Number is U01120AP1986PLC006728.)
Registered Office: 513B, 5th Floor, Minerva Complex, S.D. Road, Secunderabad - 500 003, Andhra Pradesh, India.
Tel. No. +91 40 27721457 / 27899833 Fax No. +91 40 27811237;
Contact Person: Mr. R Satish Chandra Mouli, Company Secretary and Compliance Officer
E-mail: [email protected]. Website: www.kaveriseeds.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 40,00,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS.170/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 160/- PER EQUITY SHARE) AGGREGATING TO RS.6800 LAKHS (THE "ISSUE") OUT OF WHICH 2,00,000 EQUITY SHARES WERE RESERVED FOR ELIGIBLE EMPLOYEES OF OUR COMPANY ON A COMPETITIVE BASIS ("EMPLOYEE RESERVATION PORTION"). THE NET ISSUE TO THE PUBLIC COMPRISED OF 38,00,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 170/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 160/- PER EQUITY SHARE) AGGREGATING TO RS. 6460 LAKHS (THE "NET ISSUE") THE ISSUE CONSTITUTES 29.20% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY AND THE NET ISSUE CONSTITUTES 27.74 % OF THE FULLY DILUTED POST ISSUE PAID -UP CAPITAL OF OUR COMPANY.
THE FACE VALUE OF EACH EQUITY SHARE IS RS. 10. THE ISSUE PRICE OF EACH EQUITY SHARES IS RS. 170 WHICH IS 17 TIMES THE FACE VALUE.
The Issue was made through the 100% Book Building Process wherein atleast 50% of the Net Issue to the public was to be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") (including 5% of the QIB portion that was specifically reserved for Mutual Funds). 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 on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.
The issue opened for subscription on September 6, 2007 and closed on September 11, 2007. The Issue received 11,803 applications for 1,66,72,930 Equity Shares resulting in 4.097 times subscription. The details of the applications received in the Issue from QIBs, Non-Institutional Bidders, Retail Individual Bidders and Eligible Employee categories are as under: (Before Technical & Multiple Rejections)

Final Demand
The final demand at different bid prices is as under:

The Basis of Allotment was finalised in consultation with the Designated Stock Exchange - Bombay Stock Exchange Limited ("BSE") on Monday, September 24, 2007.

A) Allocation to Employees (After Technical Rejections)
The Basis of Allotment to the Employees in the Firm Allotment category, who bid at the cut-off price or at the Issue Price of Rs.170 per Equity Share, was finalized in consultation with the BSE. The Company received 30 valid applications for 1,93,560 Equity Shares resulting in 0.968 times subscription. Hence, FULL and FIRM allotments have been made against all valid applications. The total number of shares allotted in this category is 193560 Equity Shares to 30 successful applicants. Out of the unsubscribed portion of 6,440 Equity Shares, 4508 Equity Shares have been added to Retail category and the balance 1932 Equity Shares have been added to Non-Institutional category.

B) Allocation to Retail Investors (After Technical Rejections)
The Basis of Allotment to the Retail Individual Bidders, who bid at the cut-off price or at the Issue Price of Rs. 170 per Equity Share, was finalized in consultation with the BSE. The Company received 11221 valid applications for 34,34,000 Equity Shares in this category resulting in 2.582 times subscription. The total number of Equity Shares allotted in this category 13,36,692 to 9,333 successful applicants. The category-wise details of the Basis of Allocation (sample) are given below:

C) Allocation to Non Institutional Bidders (After Technical Rejections)
The Basis of Allotment to the Non Institutional Bidders, who bid at the cut-off price or at the Issue Price of Rs. 170 per Equity Share, was finalized in consultation with the BSE. The Company received 34 valid applications for 21,47,240 Equity Shares in this category resulting in 3.767 times subscription. The total number of Equity Shares allotted in this category is 571,932. The category wide details of the Basis of Allocation are given below (Sample):

D) Allocation to QIBs
Allocation to QIBs was done on a proportionate basis in consultation with BSE. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available, i.e., 95,000 Equity Shares. Other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining 18,05,000 Equity Shares.

The Board at its meeting held in Hyderabad, on September 25,2007 approved the Basis of Allocation of Equity Shares in the Issue and recommended the allotment of Equity Shares to successful applicants.
The Company has filed the listing application with the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited on September 26, 2007.
The CAN-cum-Refund Orders and ECS/RTGS/NEFT/Direct Credit Intimation and notices (where applicable) have been dispatched to the addresses of the investors as registered with the depositories. In case the same are not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The 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 Company is taking steps to get the Equity Shares admitted for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of Basis of Allotment.

INVESTORS PLEASE NOTE
These details of the allocation made will also be available on the website of the Registrar to the Issue, Bigshare Services Private Limited, at www.bigshareonline.com
All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting the full name of the First/Sole applicant, 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:

BIGSHARE SERVICES PRIVATE LIMITED
Unit: Kaveri Seed Company Limited
E-2, Ansa Industrial Estate, Saki Vihar Road, Saki Naka, Andheri [E], Mumbai - 400 072
Phone: (91-22) 4043 0200: Fax: (91-22) 2847 5207;
Email: [email protected], Website: www.bigshareonline.com

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 KAVERI SEED COMPANY LIMITED.