| Mahindra
& Mahindra Financial Services Limited
(Originally Incorporated as Maxi Motors Financial Services Limited on
January 1, 1991 under the Companies Act, 1956 and the name was changed to Mahindra &
Mahindra Financial Services Limited on November 3,1992)
Registered Office: Gateway Building, Apollo Bunder, Mumbai 400001,
Maharashtra, India. Tel: 912222021031; Fax: 912222875485
Corporate Office: Sadhana House, 2nd Floor, Behind Mahindra Towers, 570,
P. B. Marg, Worli, Mumbai 400018, Maharashtra, India
Tel: 9122 5652 6000; Fax: 9122 2497 2741, E-mail:
ravi.v@mahindra.com; Website: www.mahindrafinance.com.
Contact Person: Mr. V Ravi; Tel: 9122 5652 6000
BASIS OF ALLOTMENT
PUBLIC ISSUE OF 20,000,000 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF
RS. 200/- PER EQUITY SHARE AGGREGATING RS. 400.00 CRORES (REFERRED TO AS "THE
ISSUE"). THE ISSUE COMPRISED A FRESH ISSUE OF 10,000,000 EQUITY SHARES OF RS.10 EACH
AND AN OFFER FOR SALE OF 10,000,000 EQUITY SHARES OF RS.10 EACH BY MAHINDRA & MAHINDRA
LIMITED AND CERTAIN OTHER SHAREHOLDERS OF THE COMPANY THE ISSUE CONSTITUTED 23.26% OF THE
FULLY DILUTED POST ISSUE CAPITAL OF THE COMPANY
THE FACE VALUE PER EQUITY SHARE IS 10/- EACH FOR CASH AT A PRICE OF RS.200/- EACH AND THE
ISSUE PRICE IS 20 TIMES OF THE FACE VALUE.
In terms of Rule 19(2)(b) of the Securities Contract Regulation Rule, 1957, this being an
Issue for less than 25% of the post issue capital, this Issue was made through the 100%
Book Building Process wherein 60% of the Issue 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, at least 10% of
the Issue was available for allocation on a proportionate basis to Non-institutional
Bidders and at least 30% of the Issue 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 283,509 applications for 537,752,658 equity shares resulting in 26.88
times subscription. The details of the applications received in the Issue from QIBs,
Non-Institutional and Retail Bidders are as under (Before technical rejections):
| Category |
No. of Applications |
No. of Shares |
Subscription (no. of times) |
| Retail Bidders |
262,308 |
60,804,796 |
10.13 |
| Non Institutional Bidders |
1,056 |
85,900,665 |
42.95 |
| QIBs |
145 |
391,047,195 |
32.56 |
Final Demand
The final demand at different bid prices is as under:
| Bid Price |
No. of Shares |
% to Total |
Cumulative Total |
Cumulative % to total |
| 170 |
278,390 |
0.05 |
540,356,285 |
100.00 |
| 171 |
490 |
0.00 |
540,077,895 |
99.95 |
| 172 |
1155 |
0.00 |
540,077,405 |
99.95 |
| 173 |
175 |
0.00 |
540,076,250 |
99.95 |
| 174 |
315 |
0.00 |
540,076,075 |
99.95 |
| 175 |
25,165 |
0.00 |
540,075,760 |
99.95 |
| 176 |
140 |
0.00 |
540,050,595 |
99.94 |
| 177 |
245 |
0.00 |
540,050,455 |
99.94 |
| 178 |
7365 |
0.00 |
540,050,210 |
99.94 |
| 160 |
531,370 |
0.10 |
540,042,825 |
99.94 |
| 181 |
245 |
0.00 |
539,511,455 |
99.84 |
| 182 |
140 |
0.00 |
539,511,210 |
99.84 |
| 183 |
105 |
0.00 |
539,511,070 |
99.84 |
| 184 |
35 |
0.00 |
539,510,965 |
99.84 |
| 185 |
235,725 |
0.04 |
539,510,930 |
99.84 |
| 186 |
4165 |
0.00 |
539,275,205 |
99.80 |
| 187 |
350 |
0.00 |
539,271,040 |
99.80 |
| 188 |
210 |
0.00 |
539,270,690 |
99.80 |
| 190 |
524,125 |
0.10 |
539,270,480 |
99.80 |
| 191 |
175 |
0.00 |
538,746,355 |
99.70 |
| 192 |
70 |
0.00 |
538,746,180 |
99.70 |
| 193 |
105 |
0.00 |
538,746,110 |
99.70 |
| 195 |
19,880 |
0.00 |
538,746,005 |
99.70 |
| 196 |
245 |
0.00 |
538,726,125 |
99.70 |
| 198 |
665 |
0.00 |
538,725,880 |
99.70 |
| 199 |
140 |
0100 |
538,725,215 |
99.70 |
| 200 & Cut Off |
538,725,075 |
99.70 |
538,725,075 |
99.70 |
|
540,356,265 |
100.00 |
|
|
The Basis o llotment was nalized in consultation with the National Stock Exchange of
India Limited ("NSE") on March 8, 2006. The Committee of Directors of the
company at it's Meeting held on March 9, 2006 has approved the basis of allocation of
shares of the Issue and has allotted the shares to various successful applicants.
A. Allotment to Retail Investors
The category (net of technical rejections) was over subscribed 9.85 times. The
total number of shares allotted in this category is 6,000,000 Equity Shares. The
category-wise details of the Basis of Allotment in this category are as under:
| Category |
No. of
Applications |
% to
total |
Total No. of
Shares
applied |
% to
total |
No. of
Shares
allotted |
Ratio |
Total No.
of Shares
allotted |
| 35 |
29,123 |
10.62 |
1,019,305 |
1.72 |
35 |
5:49 |
104,020 |
| 70 |
29,905 |
10.90 |
2,093,350 |
3.54 |
35 |
10:49 |
213,605 |
| 105 |
28,434 |
10.37 |
2,985,570 |
5.05 |
35 |
15:49 |
304,640 |
| 140 |
18,803 |
6.85 |
2,632,420 |
4.45 |
35 |
2 :49 |
268,625 |
| 175 |
13,395 |
4.88 |
2,344,125 |
3.96 |
35 |
1:02 |
234,430 |
| 210 |
16,628 |
6.06 |
3,491,880 |
5.91 |
35 |
3:05 |
349,195 |
| 245 |
88,531 |
32.27 |
21,690,095 |
36.69 |
35 |
17:24 |
2,194,815 |
| 280 |
2,833 |
1.03 |
793,240 |
1.34 |
35 |
4:05 |
79,310 |
| 315 |
1,214 |
0.44 |
382,410 |
0.65 |
35 |
8:09 |
37,765 |
| 350 |
2,546 |
0.93 |
891,100 |
1.51 |
36 |
FIRM |
91,656 |
| 385 |
886 |
0.32 |
341,110 |
0.58 |
39 |
FIRM |
34,554 |
Additional |
1 |
1:12 |
75 |
| 420 |
1244 |
0.45 |
522,480 |
0.88 |
43 |
FIRM |
53,492 |
| 455 |
1308 |
0.48 |
595,140 |
1.01 |
46 |
FIRM |
60,168 |
| 490 |
39473 |
14.39 |
19,341,770 |
32.71 |
50 |
FIRM |
1,973,650 |
B. Allotment to Non Institutional Investors
The category was subscribed (net of technical rejections) 42.87 times. The total number of
shares allotted in this category is 2,000,000 Equity Shares. A sample of the category-wise
details of the Basis of Allotment in this category are as under:
| Category |
No. of
Applications |
% to
total |
Total No. of
Shares
applied |
% to
total |
No. of
Shares
allotted |
Ratio |
Total No.
of Shares
allotted |
| 525 |
136 |
14.18 |
71,400 |
0.08 |
35 |
4:11 |
1,715 |
| 1015 |
13 |
1.36 |
13,195 |
0.02 |
35 |
2:03 |
315 |
| 10,010 |
7 |
0.73 |
70,070 |
0.08 |
234 |
FIRM |
1,638 |
| 50,015 |
15 |
1.56 |
750,225 |
0.88 |
1167 |
FIRM |
17,505 |
| 100,030 |
4 |
0.42 |
400,120 |
0.47 |
2334 |
FIRM |
9,336 |
| 1,314,985 |
1 |
0.10 |
1,314,985 |
1.53 |
30674 |
FIRM |
30,674 |
| 2,499,980 |
4 |
0.42 |
9,999,920 |
11.66 |
58317 |
FIRM |
233,268 |
| 3,249,995 |
1 |
0.10 |
3,249,995 |
3.79 |
75812 |
FIRM |
75,812 |
| 4,200,000 |
1 |
0.10 |
4,200,000 |
4.90 |
97973 |
FIRM |
97,973 |
| 12,502,000 |
1 |
0.10 |
12,502,000 |
14.58 |
291632 |
FIRM |
291,632 |
| 19,999,000 |
1 |
0.10 |
19,999,000 |
23.33 |
466493 |
FIRM |
46,6493 |
C. Allotment to OIBs
As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of
shares available in the QIB category (600,000 Equity Shares) and other QIBs including
Mutual Funds were allotted the remaining available shares (11,400,000 Equity Shares) on
proportionate basis. Mutual Funds were allotted 17.98% and other QIB applicants were
allotted 82.02% of the shares allotted in the QIB category.
| Cateory |
Fls/Banks |
MFs |
File |
Insurance
Companies |
Total |
| No.of Shares |
222,182 |
2,158,098 |
9,546,727 |
72,993 |
12,000,000 |
The Refund Orders and allotment advice have been dispatched to the address of the
investors as registered with the depositories on March 10, 2006. In case the same is not
received within ten days, investors may contact at the address given below. The Refund
Orders have been overprinted with the Bank Mandate details as registered, if any, with the
depositories. The Equity Shares allotted to successful applicants are being credited to
their beneficiary accounts subject to validation of the account details with the
depositories concerned on March 10, 2006. The listing applications have been filed with
the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited on
March 10, 2006 and the Company is taking steps to get the Equity Shares admitted for
trading on the National Stock Exchange of India Limited and the Bombay Stock Exchange
Limited within seven working days from the date of approval of the basis of allocation.
INVESTORS PLEASE NOTE
The details of the allotment made would be hosted on the website of Registrar to the
Issue, Kervy Computershare Private Limited at www.karvy.com
or http://kcpl.karvy.com
All future correspondence in this regard may kindly be addressed to the Registrar to the
Issue quoting full name of the First/ Sole applicant, the bid-cum-application form number,
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:
Karvy Computershare Private Limited
Unit: Mahindra, Karvy House, 46, Avenue 4, Street No.1, Banjara Hills, Hyderabad
- 500034, Fax: 040-23311968
Email: mmfsl.ipo@karvy.com or mailmanager@karvy.com
TOLL FREE - HELPLINE NUMBER 1-600-3454001
| Place: Mumbai
Date: March 10, 2006 |
For Mahindra & Mahindra Financial Services
Limited
V Ravi
Chief Financial Officer and Compliance Officer |
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 MAHINDRA &
MAHINDRA FINANCIAL SERVICES LIMITED. |