Lanco Infratech Limited

Our Company was originally incorporated as "Lanco Constructions Limited' on March 26,1993 in Andhra Pradesh. The name of cur Company was changed to "Lanco Infratech Limited" with effect from November 24,2000 at Hyderabad)
Registered Office: Lanco House, 141, Avenue # 8, Road #2, Banjara Hills, Hyderabad-500034.
Tel : +91-40-2354 0695/697/701/703; Fax: +91-40-23540699,
Contact Person and Compliance Officer: Mr. C. Krishnakumar.
Email: [email protected] Website: www.lancogroup.com

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 44,472,381 EQUITY SHARES OF Rs.10/- EACH FOR CASH ATA PRICE OF Rs.240/- PER EQUITY SHARE AGGREGATING Rs.10,673.37 MILLION BY LANCO INFRATECH LIMITED ("THE COMPANY" OR "ISSUER") (THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 43,972,381 EQUITY SHARES OF R&10/- EACH (THE "NET ISSUE") AGGREGATING Rs.10,553.37 MILLION AND A RESERVATION FOR ELIGIBLE EMPLOYEES OF UP TO 500,000 EQUITY SHARES OF R& 10/- EACH AGGREGATING R&1 20 MILLION. THE ISSUE WOULD CONSTITUTE 20.00 % OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY

ISSUE PRICE Rs.240/- PER EQUITY SHARE. THE ISSUE PRICE IS 24.0 TIMES OF THE FACE VALUE

The Issue made through the 100% Book Building Process where atleast 60% 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 to specifically be allotted to mutual funds). Further, up to 10^% of the net issue to the public was available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the net issue to the public was available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

The Issue received 182218 applications for 516107400 equity shares resulting in 11.6051 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional, Retail Individual Investors and Employee are as under (Before technical rejections):

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

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited ("NSE") on 21st November, 2006

A. Allocation to Employees
The Basis of Allocation to the Employees category, who have bid at cut-off or at and above the Issue Price of Rs.240/- per Equity Share, was finalized in consultation with NSE. The category was subscribed 1.16740 times. The total number of shares allotted in this category is 500000 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under:

B. Allocation to Retail Investors
The Basis of Allocation to the Retail Investors, who have bid at cut-off or at and above the Issue Price of Rs.240/- per Equity Share, was finalized in consultation with NSE. The category was over subscribed 2.33388 times. The total number of shares allotted in this category is 13191733 Equity Shares. The category-wise details of the Basis of Allocation are as under: '

C. Allocation to Non Institutional Investors

The Basis of Allocation to the Non institutional, who have bid at and above the Issue Price of Rs.240/ - per Equity Share, was finalized in consultation with NSE. The category was subscribed 1.32554 times. The total number of shares allotted in this category is 4397219 Equity Shares. The categorywise details of the Basis of Allocation (Sample) are as under:

D. Allocation to QIBs
Allocation to QIBS have been done on a proportionate basis in consultation with NSE. AS per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (1319171) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (25064258) on proportionate basis. The sectors] cap and other limits applicable to the holding of shares in company have been taken into account while allotting shares. Mutual Funds were allotted 5.00% for QIB segment and other QIB applicants were allotted 95.00% of the shares for QIB segment.

The Board of Directors of the company at its Meeting held at Hyderabad on 21st November, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

The Refund Orders and allotment advice and notice has been dispatched to the address of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact 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 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 equity shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
This details of the allocation made would be hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www.intlmespgctrum.com
All future correspondence in this regard may kindly be addressed to the Registrars to the issue quoting 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:

INTIME SPECTRUM REGISTRY LIMITED
Unit : LANCO INFRATECH Limited
C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai - 400 078
Tel. No.: (91 22) 2596 0320 - 28, Fax. No.: (91 22) 2596 0329
Email : [email protected]

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  LANCO  INFRATECH  LIMITED.