NITCO TILES LIMITED

(Our Company was originally incorporated in India as Nitco Tiles Private Limited on July 25,1966 in New Delhi under the Companies Act,1956. On May 11, 1973, the registered office of the Company was shifted from the Union Territory of New Delhi to the State of Maharashtra. The Company's registration no. is 11-16547. The Company was converted into a public limited Company (with effectfrom January 25,1996) Pursuant to this, the name of the Company was changed to Nitco Tiles Limited.) Registered Office & Corporate Office: 86-A, 8th Floor, Maker Chambers III, Nariman Point, Mumbai-400021, Maharashtra, India. Tel.:+912255521555 Fax: +912222024404. ContectPerson: Mr. B. G. Borkar; Tel.: +9122 5552 1555 Website: www.nitootiles.com, Email: ipo@nitcotiles.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 10, 000,000 EQUITY SHARES OF FACE VALUE RS. 10/- EACH FOR CASH AT A PRICE OF RS.168/-AGGREGATING TO RS. 168 CRORES (HEREINAFTER REFERRED TO AS THE "ISSUE"). INCLUDING EMPLOYEE RESERVATION OF 10,00,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH AT A PRICE OF RS. 168 PER EQUITY SHARE FOR CASH AGGREGATING RS. 16.8 CRORES (HEREINAFTER REFERRED TO AS THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION SHALL BE HEREINAFTER REFERRED TO AS THE "NET ISSUE".THE ISSUE WOULD CONSTITUTE 44.90% OF THE FULLY DILUTED POST ISSUE PAID-UP CAP ITAL OF THE COMPANY
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 AND THE ISSUE PRICE IS 16.80 TIMES OF THE FACE VALUE.
The Issue was made through a 100% Book Building process wherein upto 50% of the net Issue was to be allocated on a proportionate basis to Qualified Institutional Bidders (QIBs) (including 5% of the QIB portion that was to specifically be allotted to Mutual Funds). Further, not less than 15% of the Net Issue was made available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35% of the Net Issue was made 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 received 38659 applications for 45101840 equity shares resulting in 4.5101 times subscription. The details of the application received in the Issue from Retail Individual Bidders, Non Institutional Investors and Qualified Institutional Buyers categories is as under:

#Including bids received at cutoff price *After eleminating cheque returns

Final Demand
A sample of the final demand at different bid prices is as under:

The Basis of Allotment was finalized in consultation with Bombay Stock Exchange Limited ("BSE") on 10th March 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.168/-per Equity Share, was finalized in consultation with BSE. The category was subscribed 0.35272 times. Firm allotments have been made against all applications. The total number of shares allotted in this category is 352720 Equity Shares. The category -wise details of the Basis of Allocation (Sample) are as under:

B) Allocation to Retail Individual Bidders
The Basis of Allocation to the Retail Individual Bidders, who have bid at cut-off or at Issue Price of Rs.168/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 2.36282 times. The total number of shares allotted in this category is 3376552 Equity Shares. The sample of category-wise details of the Basis of Allocation is as under:

C) Allocation to Non Institutional Bidders

The Basis of Allocation to the Non Institutional Investors, who have bid for at Issue Price of Rs.168/- pet Equity Share, was finalized in consultation with BSE. The category was subscribed 2.65520 times. The total number of shares allotted in this category is 1447088 Equity shares. A sample of category-wise details of the Basis of Allocation is as under

D) Allocation to Qualified Institutional Bidders:

The Board of Directors of Nitco Tiles Limited at its Meeting held at Mumbai on 11th March 2006 has approved the basis of allocation of shares and allotted the shares to various successful applicants.

The despatch of Refund Orders would be completed by 11th March 2006 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 printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to the successful applicants shall be credited to their beneficiary accounts by 14th March, 2006 subject to validation of the account details with the depositories concerned. The Company shall be filing the listing applications to the stock exchanges by 14th March 2006. The Company is taking steps to get the Equity shares admitted for trading on the Bombay Stock Exchange Limited and National Stock Exchange of India Ltd. within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
The details of the allocation made have been hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www. Intimespectrum.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: NITCO TILES LTD., C-13, Pannalal Silk Mills Compound, Kantilal Maganlal Industrial Estate, LBS Marg Bhandup (W), Mumbai-400 078, Tel: 2596 0320-28, Fax: 2596 0329, Web site; www.intimespectrum.com, Email : nitco@ intimespectrum.com, Contact Person: Mr. Haren Modi

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 NITCO TILES LIMITED.