| Basis of Allotment |
| (This is only an advertisement for Information purpose. This is not a Prospectus announcement and not for publication or distribution, directly or indirectly outside India.) | ||
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PAR DRUGS AND CHEMICALS LIMITED | |
Oar Company was originally incorporated as "Par Drugs and Chemicals Private Limited" at Bhavnagar, Gujarat as a Private Limited Company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated February 26, 1999 bearing Registration Number 04-35512 of 1996-99 issued by the Registrar of Companies, Gujarat, Dadra & Nagar Haveli. Subsequently, our Company was converted into a Public Limited Company pursuant to special resolution passed by the members in Extra-ordinary General Meeting of our Company held on October 24, 2018 and the name of our Company was changed to "Par Drags and Chemicals Limited" and a fresh certificate of incorporation consequent upon Conversion of Private Company to Public Limited dated November 5, 2018 was issued by the Registrar of Companies, Ahmadabad. The Corporate Identification Number of our Company is U24117GJ1999PLC036512. For details of change in name end address of our Registered Office, see "Our History and Certain Corporate Matters" on page 141 of the Prospectus.
| Registered Office: 805, Dwarkesh Complex, R.C. Dutt Reed, Alkapuri, Vadodara-390 007, Gujarat; Tel +91 285 2332018 Corporate Office: 302, Anraol Plaza, Waghawadi Road, Bliavaagar - 364001, Gujarat; Tel: +91 278 2435400 |
| Contact Person: Sanket Bhapendrabhai Trivedi, Company Secretary and Compliance Officer Tel: +91 278 2447013, Email: cs.sanket@pardrags.com; Website: www.pardnjgs.com Corporate Identification Number U24117GJ1999PLC035512 |
| PROMOTERS OF OUR COMPANY: FALGUN VALLABHBHAI SAVANI AND JIGNESH VALLABHBHAI SAVANI |
| BASIS OF ALLOTMENT |
INITIAL PUBLIC OFFER CONSISTING OF FRESH ISSUE OF 16,72,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FULLY PAID OF PAR DRUGS AND CHEMICALS LIMITED ("THE ISSUER" OR "OUR COMPANY") FOR CASH AT A PRICE OF RS. 51/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 41/- PER EQUITY SHARE) (THE "ISSUE PRICE") AGGREGATING RS. 852.72 LAKHS (THE"ISSUE") OF WHICH 84,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH FOR CASH AT A PRICE OF RS. 51/- PER EQUITY SHARE, AGGREGATING RS. 42.84 LAKHS WAS RESERVED FOR SUBSCRIPTION BY THE MARKET MAKER TO THE ISSUE (THE "MARKET MAKER RESERVATION PORTION") AND 30,000 EQUITY SHARES OF FACE VALUE RS.10/- EACH FOR CASH AT A PRICE OF RS. 51/- PER EQUITY SHARE. AGGREGATING RS. 15.30 LAKHS WAS RESERVED FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES WHICH CONSTITUTE 0.49% OF OUR POST-ISSUE PAID-UP EQUITY SHARE CAPITAL ("EMPLOYEE RESERVATION PORTION"). THE ISSUE LESS MARKET MAKER RESERVATION PORTION AND EMPLOYEE RESERVATION PORTION I.E. ISSUE 15,58,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 51/- PER EQUITY SHARE IS HEREINAFTER REFERRED TO AS THE "NET ISSUE". THE ISSUE AND THE NET ISSUE CONSTITUTES 27.18 % AND 25.32 %, RESPECTIVELY OF THE FULLY DILUTED POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY.
This issue is being made in terms of chapter IX of the Securities And Exchange Board of India (Issue of capital and disclosure requirements) regulations, 2018 (the "SEBIICDR REGULATIONS"), as amended in terms of rule 19(2)(b)(i) of the securities contracts (regulation) rules, 1957, as amended (the "SCRR"), this issue is being made for at least 25% of the post-issue paid-up equity share capital of our company. This issue is a fixed price issue and allocation in the net issue to the public will be made in terms of regulation 253 of the SEBI (ICDR) regulations 2018, as amended. For further details, please refer to section titled "Issue Procedure" beginning on page 211 of the Prospectus.
RISKS TO INVESTORS:
| I. | As on date of the Prospectus, the average cost of acquisition per Equity Share by our Promoters viz. Falgun Vallabhbhai Savani is Rs. 19.12 and Jignesh Vallabhbhai Savani is Rs. 19.93. | ||
| II. | This being the first public Issue of Equity Shares of our Company, there has been no formal market for the Equity Shares. The face value of the Equity Shares is Rs. 10/- each. The Issue Price as stated in "Basis for Issue Price" on page 89 of the Prospectus should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed on the EMERGE Platform of the National Stock Exchange of India Limited. No assurance can be given regarding an active and/or sustained trading in the Equity Shares nor regarding the price at which the Equity Shares will be traded after listing. | ||
| In terms of Prospectus dated April 25,2019 and as per Regulation 253(2) SEBI (ICDR) Regulations, 2018 wherein: | |||
| The allocation in the Net Issue to the public category has been made as follows: | |||
| (a) | minimum fifty percent to retail individual investors; and, | ||
| (b) | remaining to: | ||
| (i) | individual applicants other than retail individual investors; and | ||
| (ii) | other investors including corporate bodies or institutions, irrespective of the number of specified securities applied for; | ||
Provided that the unsubscribed portion in either of the categories specified in clauses (a) or (b) may be allocated to applicants in the other category.
Explanation: For the purpose of Regulation 253(2) of SEBI (ICDR) Regulation, 2018. if retail individual investors are 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 offer through ASBA process. For details in this regards, specific attention is invited to chapter "Issue Procedure'' on page 211 of the Prospectus.
| THE FACE VALUE OF EQUITY SHARES IS RS. 10/- EACH. |
| THE ISSUE PRICE IS RS. 51/- AND IS 5.10 TIMES THE FACE VALUE OF THE EQUITY SHARES |
| ISSUE OPENED ON: FRIDAY, MAY 03, 2019 AND CLOSED ON: WEDNESDAY, MAY 08, 2019 |
The Equity Shares of our Company offered 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 IX of the SEBI (ICDR) Regulations, 2018 as amended from time to time. Our Company has received an In-Principle approval letter dated April 25,2019 from National Stock Exchange of India Limited ("NSE") for using its name in the Offer document for listing of our shares on the EMERGE Platform of National Stock Exchange of India Limited. For the purpose of this Issue, National Stock Exchange of India Limited shall be the Designated Stock Exchange.
SUBSCRIPTION DETAILS
The Issue has received 3,228 applications for 85,74,000 Equity shares (before technical rejections) including Market Maker Application of 84,000 Equity Shares and Employee Reservation Application of 30,000. The issue was subscribed to the extent of 5.13 times as per the application data (before technical rejections). After considering the technical rejections cases, the issue was subscribed 5.05 times.
The details of application received (Before Technical Rejection)
| CATEGORY | NUMBER OF APPLICATIONS | NUMBER OF EQUITY SHARES | SUBSCRIPTION |
| Market Maker | 1 | 84,000 | 1.00 |
| Employee Reservation | 9 | 30,000 | 1.00 |
| Other than Retail Individual Investor | 138 | 23,00,000 | 2.95 |
| Retail Individual Investors | 3,080 | 61,60,000 | 7.90 |
| Total | 3,228 | 85,74,000 | 5.13 |
The details of applications rejected by the Registrar on technical grounds and Multiple Rejection are detailed below:
| CATEGORY | NUMBER OF APPLICATIONS | NUMBER OF EQUITY SHARES |
| Market Maker | - | - |
| Employee Reservation | - | - |
| Other than Retail Individual Investor | 1 | 4,000 |
| Retail Individual Investors | 67 | 1,34,000 |
| TOTAL | 68 | 1,38,000 |
Detail of the Applications Received (After Technical and Multiple Rejection):
| CATEGORY | NUMBER OF APPLICATIONS | NUMBER OF EQUITY SHARES | SUBSCRIPTION |
| Market Maker | 1 | 84,000 | 1.00 |
| Employee Reservation | 9 | 30,000 | 1.00 |
| Other than Retail Individual Investor | 137 | 22,96,000 | 2.95 |
| Retail Individual Investors | 3,013 | 60,26,000 | 7.73 |
| TOTAL | 3,160 | 84,36,000 | 5.05 |
ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - National Stock Exchange of India Limited on May 13, 2019.
| A | Allocation to Market Maker (After Technical Rejections): The Basis of Allotment to the Market Maker, at the issue price of Rs. 51/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 1.00 time. The total number of shares allotted in this category is 84,000 Equity shares in full out of reserved portion of 84,000 Equity Shares. |
| B | Allocation to Retail Individual Investors (After Technical Rejections): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs. 51/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 5.33 times. Total number of shares allotted in this category is 11,30,000 Equity Shares. The category wise basis of allotment is as under: |
| No. of Shares Applied for (Category wise) | No. of Applications received | % to Total | Total No. of Shares applied | % to total | Proportionate Shares Available | Allocation per Applicant | Ration of Allottees to the Applicants | Total No. of shares allocated/ alloted | % to Total | Surplus/Deficit | |
| (1) | (2) | (3) | (4) | (5) | (6) | Before Rounding off (7) | After Rounding off (8) | (9) | (10) | (11) | (12) |
| 2000 | 3013 | 100.00 | 6026000 | 100.00 | 1130000 | 375.04 | 2000 | 3 16 | 1130000 | 100.00 | 0 |
| 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 51/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 5.36 times. Total number of shares allotted in this category is 4,28,000 Equity Shares. The category wise basis of allotment is as under: |
| No. of Shares Applied for (Category wise) | No. of Applications received | % to Total | Total No. of Shares applied | % to total | Proportionate Shares Available | Allocation per Applicant | Ration of Allottees to the Applicants | Total No. of shares allocated/ alloted | % to Total | Surplus/ Deficit | ||
| (1) | (2) | (3) | (4) | (5) | (6) | Before Rounding off (7) | After Rounding off (8) | (9) | (10) | (11) | (12) | |
| 4000 | 59 | 43.06 | 236000 | 10.27 | 43990 | 745.59 | 2000 | 22 | 59 | 44000 | 10.28 | 10 |
| 6000 | 19 | 13.86 | 114000 | 4.96 | 21251 | 1118.47 | 2000 | 11 | 19 | 22000 | 5.14 | 749 |
| 8000 | 10 | 7.29 | 80000 | 3.48 | 14913 | 1491.3 | 2000 | 4 | 5 | 16000 | 3.73 | 1087 |
| 10000 | 10 | 7.29 | 100000 | 4.35 | 18641 | 1864.1 | 2000 | 9 | 10 | 18000 | 4.20 | -641 |
| 12000 | 4 | 2.91 | 48000 | 2.09 | 8948 | 2237 | 2000 | 1 | 1 | 8000 | 1.86 | -948 |
| 12000 | 2000 | 1 | 4 | 2000 | 0.46 | 2000 | ||||||
| 14000 | 6 | 4.37 | 84000 | 3.65 | 15659 | 2609.83 | 2000 | 1 | 1 | 12000 | 2.80 | -3659 |
| 14000 | 2000 | 1 | 3 | 4000 | 0.93 | 4000 | ||||||
| 18000 | 2 | 1.45 | 36000 | 1.56 | 6711 | 3355.5 | 2000 | 1 | 1 | 4000 | 0.93 | -2711 |
| 18000 | 2000 | 1 | 2 | 2000 | 0.46 | 2000 | ||||||
| 20000 | 4 | 2.91 | 80000 | 3.48 | 14913 | 3728.25 | 2000 | 1 | 1 | 8000 | 1.86 | -6913 |
| 20000 | 2000 | 3 | 4 | 6000 | 1.40 | 6000 | ||||||
| 22000 | 3 | 2.18 | 66000 | 2.87 | 12303 | 4101 | 4000 | 1 | 1 | 12000 | 2.80 | -303 |
| 28000 | 1 | 0.72 | 28000 | 1.21 | 5220 | 5220 | 6000 | 1 | 1 | 6000 | 1.40 | 780 |
| 30000 | 2 | 1.45 | 60000 | 2.61 | 11185 | 5592.5 | 6000 | 1 | 1 | 12000 | 2.80 | 815 |
| 32000 | 3 | 2.18 | 96000 | 4.18 | 17895 | 5965 | 6000 | 1 | 1 | 18000 | 4.20 | 105 |
| 36000 | 1 | 0.72 | 36000 | 1.56 | 6711 | 6711 | 6000 | 1 | 1 | 6000 | 1.40 | -711 |
| 40000 | 2 | 1.45 | 80000 | 3.48 | 14913 | 7456.5 | 6000 | 1 | 1 | 12000 | 2.80 | -2913 |
| 40000 | 2000 | 1 | 2 | 2000 | 0.46 | 2000 | ||||||
| 44000 | 1 | 0.72 | 44000 | 1.91 | 8202 | 8202 | 8000 | 1 | 1 | 8000 | 1.86 | -202 |
| 50000 | 3 | 2.18 | 150000 | 6.53 | 27962 | 9320.67 | 8000 | 1 | 1 | 24000 | 5.60 | -3962 |
| 50000 | 2000 | 2 | 3 | 4000 | 0.93 | 4000 | ||||||
| 60000 | 4 | 2.91 | 240000 | 10.45 | 44739 | 11184.75 | 10000 | 1 | 1 | 40000 | 9.34 | -4739 |
| 60000 | 2000 | 1 | 2 | 4000 | 0.93 | 4000 | ||||||
| 128000 | 1 | 0.72 | 128000 | 5.57 | 23861 | 23861 | 24000 | 1 | 1 | 24000 | 5.60 | 139 |
| 196000 | 1 | 0.72 | 196000 | 8.53 | 36537 | 36537 | 36000 | 1 | 1 | 36000 | 8.41 | -537 |
| 394000 | 1 | 0.72 | 394000 | 17.16 | 73446 | 73446 | 74000 | 1 | 1 | 74000 | 17.28 | 554 |
| Total | 137 | 100.00 | 2296000 | 100.00 | 428000 | 428000 | 100.00 | 0 | ||||
Please Note: Additional lot of 2000 shares given in applied category of 12000, 14000, 18000, 20000, 40000, 50000 and 60000 after proportionate allocation of Equity shares.
D. Allocation to Eligible Employee under Employee reservation (After Technical Rejections):
The Basis of Allotment to the Eligible Employee, at the issue price of Rs. 51/- per Equity Share, was finalized in consultation with National Stock Exchange of India Limited. The category was subscribed by 1.00 time. The total number of shares allotted in this category is 30,000 Equity shares in full out of reserved portion of 30,000 Equity Shares. The category wise basis of allotment is as under:
| No. of Shares Applied for (Category wise) | No. of Applications received | % to Total | Total No. of Shares applied | % to total | Proportionate Shares Available | Allocation per Applicant | Ration of Allottees to the Applicants | Total No. of shares allocated/ alloted | % to Total | Surplus/ Deficit | ||
| (1) | (2) | (3) | (4) | (5) | (6) | Before Rounding off (7) | After Rounding off (8) | (9) | (10) | (11) | (12) | |
| 2000 | 5 | 55.56 | 10000 | 33.33 | 10000 | 2000 | 2000 | 1 | 1 | 10000 | 33.33 | 0 |
| 4000 | 2 | 22.22 | 8000 | 26.67 | 8000 | 4000 | 4000 | 1 | 1 | 8000 | 26.67 | 0 |
| 6000 | 2 | 22.22 | 12000 | 40.00 | 12000 | 6000 | 6000 | 1 | 1 | 12000 | 40.00 | 0 |
| Total | 9 | 100.00 | 30000 | 100.00 | 30000 | 30000 | 100.00 | 0 | ||||
The Board of Directors of the Company at its meeting held on May 14, 2019 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 / as filled in the application form on or before May 15, 2019. Further, the instructions to SCSBs has been issued on May 14, 2019 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 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 May 16, 2019 subject to receipt of listing and trading approvals from National Stock Exchange of India Limited.
INVESTORS PLEASE NOTE
The details of the allotment made will 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 at the address of the Registrar given below:
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LINK INTIME INDIA PRIVATE LIMITED |
| C-101,247 Park, L.B.S. Marg, Vikhroli (West), Mumbai- 400 083, India | |
| Tel: 022-49186200 Fax: 022-49186195 Website: www.linkintime.co.in | |
| Investor Grievance Id: pardrugs.ipo@linkintime.co.in | |
| Contact Person: Shanti Gopalkrishnan SEBI Registration Number: INR000004058 |
| For. Par Drugs and Chemicals Limited | |
| On behalf of the Board of Directors | |
| Sd/- | |
| Date: May 14, 2019 | Falgun Vallabhbhai Savani |
| Place: Vadodara | Chairman and Managing Director |
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 PAR DRUGS AND CHEMICALS LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.
Par Drugs and Chemicals Limited is proposing, subject to market conditions, public issue of its equity shares and has filed the Prospectus with the Registrar of Companies, Ahmedabad, Gujarat. The Prospectus is available on the website of SEBI at www.sebi.gov.in, the website of the Lead Manager at www.pantomathgroup.com, website of the National Stock Exchange of India Limited at www.nseindia.com and website of Issuer Company at www.pardrugs.com Investors should note that investment in Equity Shares involves a high degree of risk. For details, investors shall refer to and rely on the Prospectus including the section titled "Risk Factors" beginning on page no. 26 of the Prospectus, which has been filed with ROC. The Equity Shares have not been and will not be registered under the US Securities Act (the "Securities Act") or any state securities law in United States and may not be Issued or sold within the United States or to, or for the account or benefit of, "U.S. persons" (as defined in the Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to the registration requirements of the Securities Act of 1933.
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