| Basis of Allotment |
| THIS
IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY AND IS NOT A PROSPECTUS
ANNOUNCEMENT AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE, PURCHASE OR
SUBSCRIBE FOR SECURITIES. NOT FOR PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY
OUTSIDE INDIA
GALAXY SURFACTANTS LIMITED Our Company was originally incorporated as 'Galaxy Surfactants Private Limited" on May 20,1986 at Mumbai. Maharashtra as a private limited company under the Companies Act, 1956. Pursuant to a special resoluton of our Shareholders dated January 24,1995, our Company was converted into a public limited company and our Company's name was changed to "Galaxy Surfactants Limited" and a certificate of change of name dated March 13,1995 was issued by the Registrar of Companies, Maharashtra at Mumbai ("RoC"). For details, see "History and Certain Corporate Matters" on page 152 of the Prospectus dated February 1, 2018 ("Prospectus"). Registered & Corporate Office: C-49/2, TTC
industrial Area. Pawne, Navi Mgmbai - 400 703. Contact Person: Mr.
Niranjan Kelker, Company Secretary and Compliance Officer, OUR PROMOTERS: MR. UNNATHAN SHEKHAR, MR. GOPALKRISHNAN RAMAKRISHNAN Our Company has filed the Prospectus dated February 1, 2018 with the RoC, and the Equity Shares are proposed to be listed on the National Stock Exchange of India Limited ("NSE") and BSE Limited ("BSE" and together with NSE, the "Stock Exchanges") and trading is expected to cornmence on or about February 8, 2018. BASIS OF ALLOTMENT INITIAL PUBLIC OFFERING OF 6,331,674 EQUITY SHARES OF FACE VALUE OF RS 10 EACH ("EQUITY SHARES") OF GALAXY SURFACTANTS LIMITED ("COMPANY" OR "ISSUER") FOR CASH AT A PRICE OF RS 1,480 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 1,470 PER EQUITY SHARE) ("OFFER PRICE") AGGREGATING TO RS 9,370.88 MILLION CONSISTING OF AN OFFER OF SALE OF 39,250 EQUITY SHARES BY THE PERSON LISTED IN PART I OF ANNEXURE A OF THE PROSPECTUS ("PROMOTER SELLING SHAREHOLDER"), 2,107,804 EQUITY SHARES BY THE PERSONS LISTED IN PART II OF ANNEXURE A OF THE PROSPECTUS ("PROMOTER GROUP SELLING SHAREHOLDERS") AND 4,184,620 EQUITY SHARES BY THE PERSONS LISTED IN PART III OF ANNEXURE A OF THE PROSPECTUS ("OTHER SELLING SHAREHOLDERS" AND TOGETHER WITH THE PROMOTER SELLING SHAREHOLDER AND PROMOTER GROUP SELLING SHAREHOLDERS THE "SELLING SHAREHOLDERS") ("OFFER"). THE OFFER CONSTITUTES 17.86% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY. OFFER PRICE: RS 1,480 PER EQUITY SHARE OF FACE VALUE OF RS 10 EACH Risks to Investors: 1. The three Book Running Lead Managers associated with the Offer have handled 56 public Issues in the past three financial years out of which 11* public issues closed below the issue price on listing date. 2. There are no listed peers whose business portfolio or scale of operations are comparable with ours, 3. The Price/Eamings ratio based on diluted Earnings Per Share ("Diluted EPS"') as per our Restated Consolidated Financial Statements for the Financial Year 2017, at the upper end of the Price Band, is as high as 35.86x, as compared to the Nifty 50 Index Price/Earnings ratio of 27.28x (as on January 12, 2018). 4. The average cost of acquisition per Equity Share for our Promoters, Mr. Unnathan Shekhar, Mr. Gopalkrishnan Ramakrishnan. Mr. Sudhir Dattaram Patil and Mr. Shashikant Shanbhag is Rs 6.39, Rs 5.37, Rs 4.41 and Rs 4.13, respectively. The Offer Price is Rs 1,480. *As disclosed in the prospectus OFFER PERIOD: OPENED ON MONDAY, JANUARY 29, 2018 The Offer has been made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended ("SCRR") read with Regulation 41 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended ("SEBI Regulalions"). and in compliance with Regulation 26(1) of the SEBI Regulations, where in not more than 50% of the Offer was allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs")("QIB Category"). Our Company in consultation with the BRLMs. allocated up to 60% of the QIB Category to Anchor Investors on a discretionary basis in accordance with the SEBI Regulations. ("Anchor Investor Category"), of which one third was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Category (excluding the Anchor Investor Category) was available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Category was available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price, Further, not less than 15% of the Offer was available for allocation on a proportionate basis to Non-institutional Investors and not less than 35% of the Offer was available for allocation to Retail Individual Investors in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Offer Pnce. All Bidders (except Anchor Investors) were required to mandatorily utilise the Application Supported By Blocked Amount ("ASBA") process, and provide details of their respective ASBA accounts in which the corresponding Bid Amounts were blocked by the SCSBs, Anchor Investors were not permitted to participate in the Offer through the ASBA process. For details, see "Offier Procedure" on page 363 of the Prospectus. The Offer received 1,099,237 applications for 89,699,010 Equity Shares (prior to technical Rejections) resulting in 14.1983 times subscription. The details of the applications received in the Offer from various categories are as under: (Before Technical Rejections):
Final Demand
The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE, on Monday, February 5, 2018. A. Allotment to Retail Individual Bidders (After Technical Rejections) The Basis of Allotment to the Retail Individual Bidders, who have bid at the Cut-Off Price or at the Offer Price of Rs 1,480 per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 5.7030 times. The total number of Equity Shares Allotted in Retail Category is 2,216,086 Equity Shares to 221,608 successful Retail Individual Bidders. The category-wise details of the Basis of Allotment are as under;
B Allotment to Non-lnstitutional Bidders (After Technical Rejection) The Basis of Allotment to the Non-Institutional Bidders, who had bid at the Offer Price of Rs 1,480 per Equity Share, was finalized in consultation with NSE. The Non- Institutional Category has been subscribed to the extent of 6.6246 times. The total number of Equry Shares Allotted in this category is 949,752 Equity Shares to 866 successful Non-institutional Bidders. The category-wise details of the Basis of Allotment are as under: (Sample as under)
C. Allotment to QIBs (excluding anchor Investors) (After Technical Rejections) Allotment to QIBs, who had Bid at the Offer Price of Rs 1,480 per Equity Share, has been done on a proportionate basis in consultation with the NSE. This category has been subscribed to the extent of 54,2239 times of QIB Category (excluding anchor investors). As per the SEBI Regulations, Mutual Funds were Allotted 5% of the Equity Shares of QIB Category (excluding anchor investors) available i.e. 63,317 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were Allotted the remaining available Equity Shares i.e. 1,203,019 Equity Shares on a proportionate basis The total number of Equity Shares Allotted in the QIB Category is 1,266,336 Equity Shares, which were allotted to 90 successful QIB Bidders. The category-wise details of the Basis of Allotment are as under:
D. Allotment to Anchor Investors (After Technical Rejections) The Company, in consultation with the BRLMs. has allocated 1,899,500 Equity Shares to 25 Anchor Investors (through 33 Applications) at the Anchor Investor Offer Price of Rs 1,480 per Equity Share in accordance with the SEBI Regulations. This represents approximately 60% of the QIB Category.
The IPO Committee of our Company on February 6, 2016 has laken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being NSE, and has allotted the Equity Shares to various successful Bidders. The Allotment Advice and/or notices will be dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblockng of funds, transfer to Public Offer Account have been issued on February 5, 2018 and payment to non-Syndicate brokers have been issued on February 6, 2018. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below The Equdy Shares Allotted to the successful Allottees have been uploaded on February 6, 2018 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed for final listing and commencerert of trading approvals, from the Stock Exchanges on February 6, 2016. The Company has received listing and trading approvals from NSE and BSE and trading is expected to commence on or about February 8, 2018. All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus. INVESTORS PLEASE NOTE The details of the allotment made will be hosted on the website of the Registrar to the Offer, Link Intime India Private Limited at www.linkintime.in All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the first/sole Bidder, Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below; Link Intime India Private Limited
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 GALAXY SURFACTANTS LIMITED |
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